Finding 1175259 (2025-002)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-02-25
Audit: 388965
Auditor: EIDE BAILLY LLP

AI Summary

  • Core Issue: An error occurred in calculating the return of Title IV funds due to an incorrect withdrawal date.
  • Impacted Requirements: Compliance with federal regulations for calculating unearned Title IV assistance (34 CFR 668.22(e)).
  • Recommended Follow-Up: Improve the review process to ensure the correct withdrawal date is used in R2T4 calculations.

Finding Text

2025-002 U.S. Department of Education Student Financial Assistance Cluster Federal Financial Assistance Listing Number(s): 84.007, 84.033, 84.063, 84.268 Compliance Requirement(s): Special Tests and Provisions – Return of Title IV Funds Significant Deficiency in Internal Control Criteria: The unearned amount of Title IV assistance to be returned is calculated by subtracting the amount of Title IV assistance earned by the student from the amount of Title IV aid that was disbursed to the student as of the date of the institution’s determination that the student withdrew (34 CFR 668.22(e)). Condition: One instance was identified where the amount of funds to be returned was not calculated/remitted correctly. Cause: Although the College has a formal and documented control process in place for R2T4 calculations, an incorrect withdrawal date was used in one instance, which resulted in an error in the calculation and related remittance. Effect: Due to the incorrect withdrawal date, the R2T4 calculation and the related remittance was incorrect. Questioned Costs: None reported. Context/Sampling: Of the 234 students who had an R2T4 calculation performed, 36 students were tested. Repeat Finding from Prior Year(s): No Recommendation: The College should ensure the review process captures the correct withdrawal date used in the R2T4 calculation. Views of Responsible Officials: Management agrees with the finding.

Corrective Action Plan

Federal Agency Name: U.S. Department of Education Program Name: Student Financial Assistance Cluster Federal Financial Assistance Listing #: 84.007, 84.033, 84.063, 84.268 Compliance Requirement: Special Tests and Provisions – Return of Title IV Funds Significant deficiency in internal control Finding Summary: One instance was identified where the amount of funds to be returned was not calculated/remitted correctly. Responsible Individuals: Randy Mashek, Financial Aid Director and Dawn Fleming, Assistant Director of Financial Aid Corrective Action Plan: The Financial Aid Office will collaborate with the full Student Services team (Advising, Registrar, Financial Aid, Finance) in order to continue a strong focus on the importance of the Return of Title IV Funds (R2T4) policy and procedures. This focus will improve the process in order to better accurately calculate R2T4s as well as communicate the importance of dates more effectively with students and staff regarding withdrawals and earned aid and the financial impacts of them. Implementation of certain measures has already begun in 2025-26 with the following steps: 1. Return of Title IV Funds (R2T4) calculations in real time as students withdraw from classes throughout the semester. Cross training for the administration staff processing withdrawals was implemented over the past two years. A checks and balances system are now in place to alert the Assistant Director and Director of Financial Aid whenever a complete withdrawal is made. Once the notification is made the Assistant Director reviews, calculates and processes the R2T4. The Director will perform a monthly quality sampling throughout the semester in order to review and test R2T4 calculations for accuracy and document when that happens. This process was in practice as the Assistant Director was being trained by the Director over the past year and now, we will begin to formalize that process as well as document each instance and build it into the workflow starting with the spring 2026 semester. 2. Additionally, ongoing training for R2T4 rules and regulations is completed throughout the year through our state and national associations (NASFAA and IASFAA) by the Assistant Director and Director as well as webinar and training from Federal Student Aid (FSA). From these trainings we will continue to share with Advising and support staff in order to educate and train them on the implications of withdrawals and the importance of earned aid dates, modular classes, class start and end dates, and college breaks that all impact the calculation of days in the R2T4 process and communication. Anticipated Completion Date: Ongoing. Fully functional with the start of 2026-27 year

Categories

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

Other Findings in this Audit

  • 1175248 2025-001
    Material Weakness Repeat
  • 1175249 2025-001
    Material Weakness Repeat
  • 1175250 2025-001
    Material Weakness Repeat
  • 1175251 2025-001
    Material Weakness Repeat
  • 1175252 2025-001
    Material Weakness Repeat
  • 1175253 2025-001
    Material Weakness Repeat
  • 1175254 2025-002
    Material Weakness Repeat
  • 1175255 2025-002
    Material Weakness Repeat
  • 1175256 2025-002
    Material Weakness Repeat
  • 1175257 2025-002
    Material Weakness Repeat
  • 1175258 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.063 FEDERAL PELL GRANT PROGRAM $4.87M
84.268 FEDERAL DIRECT STUDENT LOANS $1.80M
84.031 HIGHER EDUCATION INSTITUTIONAL AID $336,183
84.002 ADULT EDUCATION - BASIC GRANTS TO STATES $321,271
84.042 TRIO STUDENT SUPPORT SERVICES $312,447
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $302,685
93.493 CONGRESSIONAL DIRECTIVES $129,946
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $121,600
17.278 WIOA DISLOCATED WORKER FORMULA GRANTS $92,143
84.126 REHABILITATION SERVICES VOCATIONAL REHABILITATION GRANTS TO STATES $89,335
17.259 WIOA YOUTH ACTIVITIES $76,365
59.037 SMALL BUSINESS DEVELOPMENT CENTERS $63,936
64.027 POST-9/11 VETERANS EDUCATIONAL ASSISTANCE $37,395
84.033 FEDERAL WORK-STUDY PROGRAM $33,043
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $25,384
10.902 SOIL AND WATER CONSERVATION $19,671
10.558 CHILD AND ADULT CARE FOOD PROGRAM $19,560
84.116 FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDUCATION $19,338
47.076 STEM EDUCATION (FORMERLY EDUCATION AND HUMAN RESOURCES) $582