Finding Text
Finding 2024-002 - U.S. Department of Education (USDE), Title IV Student Financial Aid
Programs (Significant Deficiency):
Information on the Federal Program – Federal Pell Grants Program, FAL No. 84. 063, June 30
2024; Federal Work Study Program, FAL No. 84.033, June 30, 2024; Federal Supplemental
Educational Opportunity Grant, FAL No. 84.007, June 30, 2024; Federal Direct Student Loans,
FAL No. 84.268, June 30, 2024.
Criteria – Federal regulations 34 CFR 668.49.
Condition – See below.
Questioned Costs – $1,478
Context – We observed the following conditions in connection with our testing of the various U.S.
Department of Education, Title IV, Student Financial Assistance Programs:
1. Per 34 CFR 685.300(b)(5), the College provided reconciliations for the following programs,
however the reconciliations were not correct and therefore the programs were not properly
reconciled, monthly or annually.
a. Federal Pell Grant Program
b. Federal Direct Loan Program
c. Federal FSEOG Program
d. Federal Work Study Program
2. The Office of Financial Aid submitted unreconciled expenditures within the Fiscal
Operations Report and Application to Participate (FISAP) for the Federal Pell Grant
Program.
3. The College distributed the Annual Security and Fire Report (ASR) on October 10th,
2024. PER 34 CFR 668.41, By October 1 of each year, an institution must distribute the
ASR to all enrolled students and current employees as described in § 668.46(b).
4. Per HEA, Section 484B and 34 CFR 668.22, one (1) out of 6 students tested for
withdrawals and the return of Title IV funds did not have their Title IV program funds
returned within the 45-day requirement that the college determined the student withdrew.
5. Per HEA, Section 484B & 34 CFR 668.22, three (3) out of 6 students tested for withdrawals
and the return of Title IV funds did not have their Title IV program post-withdrawal
disbursement funds disbursed within the 45-day requirement that the college determined
the student withdrew. 6. Per HEA, Section 484B & 34 CFR 668.22, five (5) out of 6 students tested for withdrawals
and the return of Title IV funds (R2T4) and the school did not complete the R2T4
calculations correctly. As a result of these inaccuracies, two (2) students were overpaid
Pell and Direct Loan (DL) funds in the amount of $612 and one (1) student was underpaid
$866 in Pell funds. The following errors occurred:
a. Incorrect withdrawal dates were used
b. Incorrect dates of determination were used
c. Funds that could have been disbursed were incorrectly recorded as funds
disbursed
Cause – Oversight by responsible employees and lack of sufficient staffing.
Effect – The College's participation in the Title IV programs could be subject to USDE sanctions.
Repeat Finding – Yes, since fiscal year 2021.
Auditor's Recommendation – The College should implement corrective actions to ensure that
the above findings are resolved and will not recur in future periods.