Finding 1115299 (2024-001)

Finding 2024-001 – Return of Title IV Funds Repeat Finding: No Federal Program Title – U.S. Department of Education Student Financial Assistance Cluster Federal Direct Student Loans: 84.268 Federal Award Year 2023-2024 Condition For one out of three students tested (33%) who withdrew from the Institute, the Institute could not provide evidence that the Institute reviewed the return of Title IV funds calculation. Further, the calculation that was originally performed failed to identify $480 of aid to be disbursed as post-withdrawal. Criteria CFR section 668.22 requires the Institute to determine the amount of title IV grant or loan assistance that the student earned as of the student's withdrawal date. 2 CFR Section 200.303 requires entities receiving Federal awards establish and maintain internal controls deigned to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures in place to ensure accurate reporting of enrollment status changes. Questioned Costs There is a questioned cost of $480 for the amount of aid to be disbursed as post-withdrawal. Cause During transition of Registrar staffing in Fall of 2023 enrollment status changes were delayed and thus the Financial Aid office did not have timely information to determine correct return of Title IV fund calculations. Once the enrollment status change for the student was reviewed and return of Title IV funds was determined, the correct amount of aid to be disbursed as post-withdrawal was processed. The Institute reviewed all student withdrawals during the fiscal year and no other discrepancies in Title IV fund calculations were found. Context The finding related to one out of three students selected for testing (33%). Effect Failure to accurately determine the amount of title IV grant or loan assistance that the student earned as of the student's withdrawal date is noncompliance with Federal regulation and could result in heightened monitoring by the U.S. Department of Education. Recommendation We recommend the Institute improve internal controls in order to correctly determine the amount of title IV grant or loan assistance that the student earned as of the student's withdrawal date timely and accurately. Views of responsible officials We agree with this finding. See corrective action plan.