Finding 1169370 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-01-16

AI Summary

  • Core Issue: The College incorrectly entered spring break dates in Return of Title IV (R2T4) calculations, leading to potential errors in aid calculations for students who withdrew during that period.
  • Impacted Requirements: Compliance with 34 CFR §668.22, which mandates accurate calculations of unearned Title IV funds based on student attendance.
  • Recommended Follow-Up: Implement procedures to ensure timely updates of academic calendar changes in financial aid software and include a Financial Aid representative in the calendar committee to prevent future errors.

Finding Text

Special Test and Provisions – Return of Title IV Funds U.S. Department of Education Student Financial Assistance Cluster Assistance Listing Numbers: 84.007, 84.033, 84.063 & 84.268 Award Year: 2024-2025 Significant Deficiency and Compliance Criteria: Under 34 CFR §668.22, the College is required to return Title IV funds in accordance with federal regulations governing the Return of Title IV (R2T4) calculation. This calculation determines the amount of unearned aid by subtracting the assistance earned by the student from the total aid disbursed. The percentage of earned and unearned funds is based on the student’s attendance within the College’s defined payment period. Condition: In a sample of 25 R2T4 calculations, it was determined that College entered the spring break dates incorrectly in the calculation, which resulted in 2 calculation errors. Cause: The College had a change to the academic calendar that did not get updated in the financial aid software. Effect: All students with withdrawal dates in the timeframe between the entered spring break and actual spring break, which was a one week difference, potentially had a calculation error on their R2T4. Questioned Costs: All questioned costs are below the known and likely questioned costs reporting threshold. Recommendation: We recommend the College implement procedures to strictly comply with the requirements of 34 CFR §668.22 as it relates to calculations of return of Title IV funds. Response: The College reviewed all accounts affected by this error and identified 15 students whose accounts required adjustments. Upon review, the financial aid representative determined that excess funds were returned when the R2T4 calculations were completed. Financial Aid has since corrected the accounts and requested the additional funds owed. To prevent this issue from recurring, a representative from the Financial Aid Office will be included on the calendar committee. Additionally, Financial Aid Policies and Procedures have been updated to require calendar changes to be promptly updated in PowerFaids to ensure accuracy.

Corrective Action Plan

Corrective Action Plan December 19, 2025 U.S. DEPARTMENT OF EDUCATION Crowder College respectfully submits the following corrective action plan for the year ended June 30, 2025. Contact information for the individual responsible for the corrective action: Mr. Joseph Brenner, Vice President of Finance Crowder College 601 Laclede Avenue Neosho, MO 64850 (417) 451-3223 Independent public accounting firm: KPM CPAs, PC, 1445 E Republic Rd, Springfield, Missouri 65804 Audit Period: Year Ended June 30, 2025 The finding from the June 30, 2025, audit of the financial statements is below. The findings is numbered with the number assigned in the schedule. FINDING - MAJOR FEDERAL AWARD PROGRAM AUDIT 2025-001 Special Test and Provisions - Return of Title IV Funds Recommendation: We recommend the College implement procedures to strictly comply with the requirements of 34 CFR §668.22 as it relates to calculations of return of Title IV funds. Corrective Action Taken: The College reviewed all accounts affected by this error and identified 15 students whose accounts required adjustments. Upon review, the financial aid representative determined that excess funds were returned when the R2T4 calculations were completed. Financial Aid has since corrected the accounts and requested the additional funds owed. To prevent this issue from recurring, a representative from the Financial Aid Office will be included on the calendar committee. Additionally, Financial Aid Policies and Procedures have been updated to require calendar changes to be promptly updated in PowerFaids to ensure accuracy. Anticipated Completion Date: Fall semester 2025 and ongoing. Sincerely, Joseph Brenner Vice President of Finance

Categories

Student Financial Aid Reporting Significant Deficiency

Other Findings in this Audit

  • 1169367 2025-001
    Material Weakness Repeat
  • 1169368 2025-001
    Material Weakness Repeat
  • 1169369 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.063 FEDERAL PELL GRANT PROGRAM $9.13M
84.268 FEDERAL DIRECT STUDENT LOANS $2.18M
84.047 TRIO UPWARD BOUND $1.71M
84.042 TRIO STUDENT SUPPORT SERVICES $1.18M
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $731,717
84.002 ADULT EDUCATION - BASIC GRANTS TO STATES $621,065
84.044 TRIO TALENT SEARCH $594,761
84.149 MIGRANT EDUCATION COLLEGE ASSISTANCE MIGRANT PROGRAM $400,579
84.141 MIGRANT EDUCATION HIGH SCHOOL EQUIVALENCY PROGRAM $321,178
84.066 TRIO EDUCATIONAL OPPORTUNITY CENTERS $280,879
93.566 REFUGEE AND ENTRANT ASSISTANCE STATE/REPLACEMENT DESIGNEE ADMINISTERED PROGRAMS $276,835
84.033 FEDERAL WORK-STUDY PROGRAM $158,748
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $158,482
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $61,225