Finding Text
Finding No. 2025-003: Inadequate Calculation of Return of Title IV Funds Assistance Title: Student Financial Assistance Cluster Assistance Listing Number: 84.007, 84.063, 84.0384, 84.268, 84.379 Federal Agency: U.S. Department of Education Type of Finding: Significant Deficiency and Noncompliance Category of Finding: Special Tests and Provisions: Return of Title IV Funds Known Questioned Costs: $57 Likely Questioned Costs: $57 Criteria Per 34 CFR §668.22(a)(3), percentages related to the calculation of the Return of Title IV Funds are calculated to four decimal places, and rounded to three decimal places. The third decimal place is rounded up if the fourth decimal place is five or above. Condition During our compliance testing of Return of Title IV funds over 21 students, we discovered that the College was utilizing two decimal places rather than three decimal places as required by the Federal Student Aid Handbook. This impacted 13 students in the Spring 2025 semester, amounting to $57 of funds that should have been returned. Cause The miscalculation of return of funds appears to be due to inadequate internal controls over Federal Student Aid Handbook requirements, resulting in utilizing a different amount than what was required. Effect Without utilizing the appropriate decimal places, the College may be misusing federal funding by not calculating the appropriate amount to be returned. Repeat Finding This is not a repeat finding. Recommendation We recommend that the College strengthen its controls over ensuring the Federal Student Aid Handbook is being monitored for appropriate requirements. Management’s Response Management concurs with this finding. See Management’s Response and Corrective Action plan.