FAC Explorer

Finding 1169594 (2025-003)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-01-19
Audit: 382576
Organization: Coastal Alabama Community College (AL)
Auditor: WARREN AVERETT LLC

AI Summary

  • Core Issue: The College failed to comply with federal regulations regarding student withdrawal processes, leading to incorrect calculations of returned Title IV funds and lack of exit counseling documentation.
  • Impacted Requirements: Noncompliance with 34 CFR part 668 on withdrawal date determination, Title IV assistance calculations, and exit counseling provisions.
  • Recommended Follow-Up: Strengthen policies and procedures for the withdrawal process to ensure compliance with federal requirements.

Finding Text

Finding 2025-003 – Special Tests and Provisions – Withdrawal Testing (Material Weakness and Noncompliance) Information on the federal program: U.S. Department of Education Student Financial Assistance Cluster Criteria: 34 CFR part 668 establishes rules governing the student withdrawal process including the determination of withdrawal date, calculation of earned Title IV assistance, and return of unearned Title IV aid. Also, when a student withdraws the University must ensure exit counseling is provided to the student within 30 days in accordance with 34 CFR 685.304(b). Condition: We tested a sample of 25 withdrawn students who received financial aid. Two instances of noncompliance were identified: In one instance in which the College did not properly calculate the return of Title IV funds. The College returned $1,749 but they should have only returned $555. There were nine instances in which the College had no documentation that exit counseling was completed nor did they have documentation that the College notified and sent the exit counseling materials to the student within the 30 days as required. Cause: The College did not accurately calculate the amount of aid earned and therefore returned the incorrect amount. The College could not provide documentation that the required exit counseling interviews were completed or the College attempted to contact the borrower to complete the required counseling. Effect: The College did not calculate the amount of aid earned or complete exit counseling for student borrowers under withdrawal compliance requirements. Questioned costs: None Recommendation: We recommend the College strengthen its policies and procedures related to the withdrawal process to comply with withdrawal requirements. Views of Responsible Officials: See Management’s View and Corrective Action Plan included at the end of the report.

Corrective Action Plan

Management’s View and Corrective Action Plan: This finding has been corrected. In addition, the College has already taken corrective action to prevent this error from occurring again. First, when processing R2T4 calculations for students who populate on the end of term Failure to Pass report, students with a withdrawal date in the first two weeks of a term, will be cross checked with the Registrar’s Office to ensure that the correct LDA is being used for R2T4 calculations. The report will not automatically be assumed as correct. In addition, the Instructional Dean has been notified and informed the faculty of this error and the processes for reporting LDAs have been reiterated. In addition, to the ARGOS report used during the 2024/2025 academic year, the Financial Aid Director is using a more detailed report that is available through the ACCS. The new report and the old report will be cross-checked for accuracy. We will continue to review and modify policies to ensure that R2T4 calculations are correct.

Categories

Student Financial Aid Special Tests & Provisions Material Weakness

Other Findings in this Audit

  • 1169587 2025-002
    Material Weakness Repeat
  • 1169588 2025-002
    Material Weakness Repeat
  • 1169589 2025-002
    Material Weakness Repeat
  • 1169590 2025-002
    Material Weakness Repeat
  • 1169591 2025-003
    Material Weakness Repeat
  • 1169592 2025-003
    Material Weakness Repeat
  • 1169593 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.063 FEDERAL PELL GRANT PROGRAM $18.51M
84.268 FEDERAL DIRECT STUDENT LOANS $12.16M
84.047 TRIO UPWARD BOUND $1.21M
84.042 TRIO STUDENT SUPPORT SERVICES $1.19M
84.044 TRIO TALENT SEARCH $728,850
84.002 ADULT EDUCATION - BASIC GRANTS TO STATES $502,616
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $381,948
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $316,914
84.033 FEDERAL WORK-STUDY PROGRAM $235,101
47.076 STEM EDUCATION (FORMERLY EDUCATION AND HUMAN RESOURCES) $2,074