Finding 1115150 (2024-002)

Material Weakness
Requirement
N
Questioned Costs
$1
Year
2024
Accepted
2025-03-28

AI Summary

  • Core Issue: The College failed to properly calculate and return Title IV funds for students who withdrew, resulting in a material weakness and noncompliance.
  • Impacted Requirements: Schools must perform return of Title IV funds calculations within 45 days of a student's withdrawal, ensuring accurate amounts are returned.
  • Recommended Follow-up: Implement new procedures to review all withdrawals, ensuring accurate calculations and timely returns of Title IV funds.

Finding Text

Assistance Listing Numbers, Federal Agency, and Program Name - Student Financial Assistance Cluster - Federal Direct Student Loans Program (ALN 84.268), Federal Supplemental Educational Opportunity Grant Program (ALN 84.007), and Federal Pell Grant Program (ALN 84.063) Federal Award Identification Number and Year - Various Pass-through Entity - None Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - If a recipient of Title IV grant or loan funds withdraws from a school after beginning attendance, but before he or she has attended 60 percent of the scheduled length of the semester, the school must perform a return of Title IV funds (R2T4) calculation. If the amount disbursed to the student is greater than the amount the student earned, the unearned funds must be returned. A school must return unearned funds for which it is responsible no later than 45 days from the determination of a student's withdrawal (30 days if never attended) (34 CFR 668.220)(1)). 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. Condition - Out of 60 students tested for return to Title IV, we identified 24 students whose calculations were performed incorrectly. Questioned Costs $13,459 Identification of How Questioned Costs Were Computed The $13,459 of questioned costs was determined by calculating the total aid required to be returned for the 24 students out of our total sample of 60 students, which had total aid disbursed of $191,516. Context - The College did not review students who unofficially withdrew from the College during the winter and summer semesters. Out of our sample of 60 students who withdrew from the College during the fiscal year, 20 students did not have a return of Title IV funds calculation performed. In addition to the students who did not have a calculation performed, the School did not properly calculate 4 students return to Title IV calculations. In each instance, the calculation included the initial amount of the aid the student was entitled to and not the actual amount of aid disbursed. Cause and Effect - The College experienced turnover in the financial aid department and throughout the transition, historical procedures and controls were not followed. As a result, the controls to properly identify, calculate, and return Title IV funds for withdrawals were not operating effectively. Recommendation - The College should implement procedures and controls to review all the students who may need calculations completed and to vierify that the information used in the Title IV calculations is accurate. Views of Responsible Officials and Planned Corrective Actions - The College will work with its director of financial aid to ensure the semester end procedures include steps to identify those students who unofficially withdrew. Once the students are identified, individuals with the appropriate skills and knowledge will be able to determine if a return of Title IV calculation is necessary and appropriately return any funds, as necessary.

Categories

Questioned Costs Student Financial Aid Matching / Level of Effort / Earmarking Subrecipient Monitoring Material Weakness

Other Findings in this Audit

  • 538708 2024-002
    Material Weakness
  • 538709 2024-002
    Material Weakness
  • 538710 2024-002
    Material Weakness
  • 538711 2024-002
    Material Weakness
  • 538712 2024-003
    Significant Deficiency
  • 538713 2024-003
    Significant Deficiency
  • 538714 2024-001
    Material Weakness
  • 538715 2024-001
    Material Weakness
  • 538716 2024-002
    Material Weakness
  • 538717 2024-002
    Material Weakness
  • 538718 2024-003
    Significant Deficiency
  • 538719 2024-003
    Significant Deficiency
  • 1115151 2024-002
    Material Weakness
  • 1115152 2024-002
    Material Weakness
  • 1115153 2024-002
    Material Weakness
  • 1115154 2024-003
    Significant Deficiency
  • 1115155 2024-003
    Significant Deficiency
  • 1115156 2024-001
    Material Weakness
  • 1115157 2024-001
    Material Weakness
  • 1115158 2024-002
    Material Weakness
  • 1115159 2024-002
    Material Weakness
  • 1115160 2024-003
    Significant Deficiency
  • 1115161 2024-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $8.21M
84.268 Federal Direct Student Loans $7.43M
10.182 Pandemic Relief Activities: Local Food Purchase Agreements with States, Tribes, and Local Governments $734,995
84.425 Covid-19education Stabilization Fund $418,817
84.007 Federal Pell Grant Program $208,800
10.175 Farmers Market and Local Food Promotion Program $152,944
10.310 Agriculture and Food Research Initiative (afri) $121,139
84.033 Federal Work-Study Program $42,798
21.027 Covid-19 - Coronavirus State and Local Fiscal Recovery Funds $6,804
84.048 Career and Technical Education -- Basic Grants to States $5,627
84.007 Federal Supplemental Educational Opportunity Grants $2,931
16.607 Bulletproof Vest Partnership Program $851