Finding Text
2025-001 Direct Programs – Department of Education ALN # 84.268, 84.063, 84.007, 84.033 Student Financial Assistance Cluster – Special Tests and Provisions – Return to Title IV Material Weakness in Internal Controls Over Compliance Criteria: 34 CFR section 668.22(e) states that if a student withdraws from classes and has received student financial aid, the amount of unearned Title IV assistance must be calculated and returned to the Department of Education (DOE) as soon as possible, but no later than 45 days after the date the institution determines that the student withdrew. Condition: During our review of the return of Title IV funds, there were eleven instances out of thirty in which the Title IV funds to be returned were not calculated and returned if required within the 45-day maximum timeframe allowed. The R2T4 calculations for fall 2024 were not performed until February 2025. Cause: The College’s existing control procedures to ensure the return of Title IV funds is calculated and the funds returned within 45 days were not functioning. Effect: The funds required to be returned were not calculated timely and were not remitted to the DOE timely. Questioned Costs: None reported Sampling: A nonstatistical sample of 30 returns out of 149 returns were selected for testing. Repeat Finding from Prior Years: No Recommendation: The College should implement a control process that regularly reviews all withdrawn students that received Title IV awards and ensure the return of Title IV funds is calculated timely, and the amount calculated is appropriately remitted back to the DOE in a timely manner. Views of Responsible Officials: The Director of Financial Aid agrees with the finding.