Finding 1161455 (2024-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
$1
Year
2024
Accepted
2025-10-27

AI Summary

  • Core Issue: The College failed to accurately calculate the return of Title IV (R2T4) due to improper handling of scheduled breaks in student enrollment periods.
  • Impacted Requirements: Compliance with federal regulations (34 CFR 668.22) regarding the calculation of Federal Student Aid earned, specifically excluding breaks of five or more consecutive days.
  • Recommended Follow-up: Review R2T4 requirements and establish procedures to ensure correct factoring of scheduled breaks in future calculations.

Finding Text

Federal Agency: U.S. Department of Education Cluster Name: Student Financial Assistance Cluster Federal Program Name: Federal Supplemental Educational Opportunity Grants; Federal Pell Grant Program; Federal Direct Student Loans; Federal Work Study Program Assistance Listing Number: 84.007, 84.033, 84.063, 84.268 Federal Award Identification Number and Year: P007A240134; P033A240134; P063P242910;P268K242910 - 2024 Award Period: July 01, 2023 - June 30, 2024 Compliance Requirement: Special tests and provisions Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters. Criteria or specific requirement: Once a student's withdrawal date is determined, a school needs to calculate the percentage of the payment period or period of enrollment completed. Institutionally scheduled breaks of five or more consecutive days are excluded from the return of Title IV calculation as periods of nonattendance and, therefore, do not affect the calculation of the amount of Federal Student Aid earned (34 CFR 668.22(f)(2)(i)). Condition: During our testing, it was noted the College's process did not ensure scheduled breaks were properly factored into the R2T4 calculations for both the Fall 2023 and Spring 2024 term. Questioned costs: $109.45. Context: The College did not correctly factor in scheduled breaks to 12 of the 17 students tested for Fall 2023 and 18 of the 18 students tested for Spring 2024. The College did not include the 5 day break for Thanksgiving for the Fall 2023 Semester and used 6 days of scheduled spring break instead of the entire spring break of 9 days in the Spring 2024 calculations. Cause: Management did not have a process in place to exclude the correct amount of days in the scheduled breaks of 5 days or more. Effect: The College did not complete an accurate calculation as defined by Federal regulations. Repeat Finding: Yes- 2023-001. Recommendation: We recommend the College review the R2T4 requirements and implement procedures to ensure scheduled breaks are properly factored into the R2T4 calculations. Views of responsible officials: There is no disagreement with the audit finding, see District's corrective action plan.

Corrective Action Plan

Federal award findings and questioned costs 2024-001. Cluster name: Student Financial Assistance Cluster Assistance Listings numbers and names:84.007 Federal Supplemental Educational Opportunity Grants 84.033 Federal Work-Study Program 84.063 Federal Pell Grant Program 84.268 Federal Direct Student Loans Luisa Ott Anticipated completion date: June 30, 2025 The District agrees with the finding. After reviewing the students in the finding, the District re­processed the Return of Title IV calculation. The students records were updated and resulted in an amount of $109.45 to be returned to the students by offsetting their current balance with the District. The District will fund the reimbursement with institutional funds. During the fiscal year ending June 30, 2024, the District created a supporting automated processes to identify potential Return to Title IV accounts. This new process utilizes the student information system to automatically compute student Return to Title IV calculations. The District will also be implementing new procedures to ensure that the proper amount of scheduled breaks are included and reviewed as a final step before returning the funds.

Categories

Questioned Costs Student Financial Aid Special Tests & Provisions

Other Findings in this Audit

  • 1161452 2024-001
    Material Weakness Repeat
  • 1161453 2024-001
    Material Weakness Repeat
  • 1161454 2024-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.063 FEDERAL PELL GRANT PROGRAM $8.11M
84.268 FEDERAL DIRECT STUDENT LOANS $1.01M
17.259 WIOA YOUTH ACTIVITIES $732,239
84.031 HIGHER EDUCATION INSTITUTIONAL AID $489,054
84.047 TRIO UPWARD BOUND $338,393
84.042 TRIO STUDENT SUPPORT SERVICES $262,681
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $155,082
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $141,125
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $132,279
84.116 FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDUCATION $83,794
84.033 FEDERAL WORK-STUDY PROGRAM $76,823
17.258 WIOA ADULT PROGRAM $40,711
17.268 H-1B JOB TRAINING GRANTS $21,010
59.037 SMALL BUSINESS DEVELOPMENT CENTERS $13,589
84.002 ADULT EDUCATION - BASIC GRANTS TO STATES $3,610
43.008 OFFICE OF STEM ENGAGEMENT (OSTEM) $3,261
84.411 EDUCATION INNOVATION AND RESEARCH (FORMERLY INVESTING IN INNOVATION (I3) FUND) $835
47.076 STEM EDUCATION (FORMERLY EDUCATION AND HUMAN RESOURCES) $115