Finding Text
Finding 2025-002 – Return of Title IV Funds Repeat Finding: No Federal Program Title – U.S. Department of Education Student Financial Assistance Cluster Federal Pell Grant: 84.063 Federal Award Year 2024-2025 Award Number: P063P Condition For one out of forty students tested, City Colleges properly recalculated a return of Title IV funds for a student but did not subsequently adjust the student's account to perform the return or notify the student of the adjusted award amount. Criteria Per 34 CFR 668.22, the institution must return, the lesser of—(i) The total amount of unearned title IV assistance to be returned as calculated or an amount equal to the total institutional charges incurred by the student for the payment period or period of enrollment multiplied by the percentage of title IV grant or loan assistance that has not been earned by the student. An institution must return the amount of title IV funds for which it is responsible as soon as possible but no later than 45 days after the date of the institution's determination that the student withdrew. Uniform Grant Guidance (2 CFR 200.303) requires nonfederal entities receiving Federal awards establish and maintain internal controls designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures to ensure that returns are properly adjusted to students' accounts to ensure funds are returned to the Department of Education timely. Questioned Costs Actual questioned costs total $1,192. Based on our sample results, estimated likely questioned costs total $123,879. Cause The lack of return of Title IV funds was an oversight due to human error. Context Infrequent. One out of forty students (2.5%) selected for testing. Effect Failure to return funds to the Department of Education can result in excess cash or loss of future funding. Recommendation We recommend City Colleges enhance monitoring procedures to ensure that returns of federal funds are completed after return of Title IV calculations are performed. Views of responsible officials We agree with this finding. See corrective action plan.