Finding Text
Finding: Item 2024-002 – Special Tests: Title IV Assistance Earned
Federal Program – Federal Pell Grant
Federal ALN – 84.063
Federal Award Number – P063P188097
Federal Award Year – September 30, 2024
Federal Agency – U.S. Department of Education
Pass-through Entity – Not Applicable
Significant Deficiency
Criteria: Calculation of the amount of Title IV Assistance earned is required by Title 34 in
which the percentage of earned Title IV funds must be calculated by determining
the percentage of the Title IV grant that has been earned by the student and
applying that percentage to the total amount of Title IV grant that was or could
have been disbursed to the student for the payment period or periods as of the
withdrawal date. Institutions are responsible for accurately calculating this amount
and processing the return timely, if any.
Condition / context: Out of a sample of eight students who withdrew during the audit period, the
Title IV worksheet was not completed timely for two students that required a
return of funds. Additionally, the Title IV worksheet was not completed accurately
for one student. There was a delay in return of Title IV funds for all three of these
students that exceeded the maximum time allowed of 45 days after the date the
institution determined that the student withdrew.
The sample was not a statistically valid sample but was determined using
Chapter 11 – Audit Sampling Considerations of Uniform Guidance Compliance
Audits of the Audit and Accounting Guide for Government Auditing Standards
and Single Audits.
Cause: Procedures were not in place to verify that the Title IV worksheet was completed
accurately and returns were processed timely.
Repeat finding: Finding is a repeat of finding 2023-002 in the immediately prior audit.
Effect: Inaccurate calculation of the Title IV funds to be returned to a student can impact
the student's financial wellbeing, ability to make timely financial and strategic
decisions, and ability to enroll in the Title IV program in future periods.
Recommendation: We recommend that the Financial Aid Coordinator institute a procedure that would
ensure that the Title IV worksheet is completed accurately and correctly to ensure
that amounts earned by students who withdraw from the College are calculated
correctly to ensure timely processing of returns, if any.
View of responsible
officials:
Management's response is reported in "Management's Views and Corrective
Action Plan" at the end of this report.