Finding 1102900 (2024-001)

Return of Title IV Funds Federal Program – U.S. Department of Education (ED), Student Financial Assistance Cluster, Federal Supplemental Educational Opportunity Grant Program, #84.007; Federal Work-Study Program, #84.033; Federal Pell Grant Program, #84.063; Federal Direct Student Loan Program, #84.268. Program Year – July 1, 2023 - June 30, 2024 Criteria or Specific Requirement – Special Tests and Provisions – Return of Title IV Funds – When a recipient of Title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV aid earned by the student as of the student’s withdrawal date. If the total amount of Title IV assistance earned by the student is less than the amount that was disbursed to the student or on his or her behalf as of the date of the institution’s determination that the student withdrew, the difference must be returned to the Title IV programs as outlined in this section and no additional disbursements may be made to the student for the payment period or period of enrollment. If the amount the student earned is greater than the amount disbursed, the difference between the amounts must be treated as a post-withdrawal disbursement (34 CFR 668.22(a)(1) through (a)(5)). Condition – The College utilized an incorrect academic term for use in its Return to Title IV calculations. This error was caught by management and corrected after the period the return of Title IV funds were due. Questioned Costs – None. Context – A sample of 36 was selected from a population of 234 recipients that were subject to return of Title IV funds calculation. The College incorrectly calculated the number of days in the academic term for two recipients. This error was corrected by management 45 days after the institution became aware the students had withdrawn, the period which the return of Title IV funds were due. Effect – Due to the incorrect number of days used in the academic term for the return of funds calculation, the College did not calculate correctly the return of Title IV funds calculations for two students when the return of Title IV funds were due. Cause – The College incorrectly calculated the days that should be included in the academic term used in the return of Title IV calculation and did not correct on a timely basis. Identification as a Repeat Finding – 2023-001. Recommendation – We recommend the College implement policies and procedures to review, update, and verify academic term information used for the return of Title IV funds calculations on a timely basis. Views of Responsible Officials and Planned Corrective Actions – Concur. The College will review and update current written policies and procedures to ensure the correct amount of days are used for the academic term in the timely return of Title IV funds calculation.