Finding 1170214 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-01-21

AI Summary

  • Core Issue: 20 out of 25 student withdrawal forms were completed late, beyond the 30-day requirement.
  • Impacted Requirements: Noncompliance with 34 CFR 668.22(j) regarding timely withdrawal date determination.
  • Recommended Follow-Up: Improve review processes for student drops and ensure adequate training during staff turnover to maintain compliance.

Finding Text

Criteria or Specific Requirement: In accordance with 34 CFR 668.22(j), An institution that is not required to take attendance must determine the withdrawal date for a student who withdraws without providing notification to the institution no later than 30 days after the end of the earlier of the (1) payment period or period of enrollment, (2) academic year in which the student withdrew, or (3) educational program from which the student withdrew. Condition / Context: During our audit procedures, we noted that 20 out of 25 selections had forms that were completed after the end of the fall term, outside of the 30-day limit. Additionally, all forms appeared to have used the same drop date, regardless of the student’s actual drop date determination. Questioned Costs: None. Cause: Inadequate controls over the R2T4 process, resulting from turnover in the financial aid office. Effect: A lack of internal controls can result in noncompliance with provisions of the various programs within the Student Financial Assistance Cluster. Repeat Finding: No. Recommendation: We recommend the Colleges reinforce their review processes related to student drops and review all activity level controls to ensure compliance with the various requirements of the Student Financial Assistance Cluster. Additionally, when there is turnover, there should be adequate training within the department to ensure that another member of the team is available to meet the applicable compliance requirements.

Corrective Action Plan

The delay occurred because the responsibility for processing was temporarily reassigned to another employee who had not yet received full training on the procedure. The task has been reassigned to the original staff member who has extensive experience with R2T4 processing. In addition, the Financial Aid Office will cross train multiple Financial Aid Specialist on the processing and tracking of R2T4 to ensure compliance and remove any delays in processing. All calculations are now being completed in compliance with federal regulations, and we have implemented measures to ensure timely processing moving forward.

Categories

Student Financial Aid Internal Control / Segregation of Duties Special Tests & Provisions

Other Findings in this Audit

  • 1170208 2025-001
    Material Weakness Repeat
  • 1170209 2025-001
    Material Weakness Repeat
  • 1170210 2025-001
    Material Weakness Repeat
  • 1170211 2025-001
    Material Weakness Repeat
  • 1170212 2025-001
    Material Weakness Repeat
  • 1170213 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $39.65M
84.031 Guided Pathways to Improve Hispanic and Low Income Student Success $695,907
84.268 Federal Direct Student Loans $685,986
84.048 Career and Technical Education Act (CTEA), Title I - Part C $576,369
84.033 Federal Work-Study Program $539,263
84.007 Federal Supplemental Educational Opportunity Grant (FSEOG) $400,000
93.558 Temporary Assistance for Needy Families (TANF) $95,192
15.245 BLM Plant Conservation & Restoration Management $78,385
84.002 Workforce Innovation and Opportunity Act (WIOA II) $50,767
84.007 FSEOG Administrative Allowance $39,794
84.033 Federal Work-Study Program Administrative Allowance $26,963
10.561 Fresh Success Employment & Training Activities $13,256
64.028 Veterans Education $7,303
84.063 Federal Pell Grant Program Administrative Allowance $2,532