Finding 1161385 (2024-003)

Material Weakness Repeat Finding

Requirement

Questioned Costs

Year

2024

Accepted

2025-10-24

Audit: 371262

Organization: Contemporary Oriental Medicine Foundation (FL)

Auditor: SIKICH CPA LLC

AI Summary

Core Issue: One student had an incorrect refund calculation due to using the wrong last day of attendance.
Impacted Requirements: This finding violates the Return to Title IV regulations (34 CFR 668.22).
Recommended Follow-Up: The Institution should refund $90 to the Department of Education and improve controls over refund calculations.

Finding Text

FINDING 2024-003: INCORRECT REFUND CALCULATION FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION PROGRAM NAME: FEDERAL DIRECT LOAN PROGRAM ALN#: 84.268 FEDERAL AWARD YEAR: 2023-2024 & 2024-2025 Compliance Requirement: Special Tests and Provisions (N.) - Return of Title IV Funds Criteria: An institution must use the Return to Title IV refund calculation (34 CFR 668.22). Condition: We tested all four drop students and noted one incorrect refund calculation. We consider this finding to be an instance of non-compliance. Cause: The condition was caused by using an incorrect last day of attendance in Step 2 of the Return to Title IV (R2T4) refund calculation. Effect: The result is the Institution retained funds that should have been returned to the Department of Education. Question Costs: $90 Statistical sampling was not used when making sample selections. Recommendation: We recommend the Institution refund $90 to the Department of Education and increase controls over refund calculations. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.

Corrective Action Plan

Finding 2024-003: Incorrect Refund Calculation Comments on Finding and Recommendations: The College agrees with this finding as determined in the audit and states that the College had deficiencies related to the the return of funds to the Department of Education based on a miscalculation of the last day of attendance. Actions Taken or Planned: The College has returned the funds to the Department of Education and has instituted greater coordination between our departments including but not limited to the Academic Dean, Registrar, Accounting/Bookkeeping, Student Services and Financial Aid to ensure that last dates of attendance are accurately calculated to prevent future occurrences.

Other Findings in this Audit

1161384 2024-002

Material Weakness Repeat
1161386 2024-004

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
84.268	FEDERAL DIRECT STUDENT LOANS	$1.16M