Finding Text
2025–002 Return of Title IV Funds Federal Agency: U.S. Department of Education Federal Program Name: Student Financial Aid Cluster Assistance Listing Number: 84.063, 84.268, 84.007, 84.038, 84.033 Federal Award Identification Number and Year: P268K251853, P063P241853; 2025 Award Period: June 1, 2024 – May 31, 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters Criteria or specific requirement: The Code of Federal Regulations, 34 CFR 668.22(f)(2), states that: 1) The total number of calendar days in a payment period or period of enrollment includes all days within the period that the student was scheduled to complete, except that scheduled breaks of at least five consecutive days are excluded from the total number of calendar days in a payment period or period of enrollment and the number of calendar days completed in that period. 2) Per the Return of Title IV Funds Worksheet, when calculating percentages, Institutions should round to three decimal places in order to properly calculate the refund. Condition/Context: During our testing of return of Title IV funds, the following was noted: 1 student out of a sample of 8 students tested had the incorrect number of scheduled breaks used in the calculation of percentage of the payment period which resulted in the College over returning funds of $38. 2 students out of a sample of 8 students tested had the incorrect percentage earned used in the R2T4 worksheet, as the College did not round to three decimal places. This resulted in the College under returning funds of $33. Questioned costs: $5 Cause: The College's internal controls did not identify the errors for compliance with the criteria mentioned above. Effect: The College did not comply with accurately calculating the return of Title IV funds for these students. Repeat Finding: No. Recommendation: The College should review its policies and procedures on determining student's withdrawals, specifically the proper calculation elements and proper rounding where necessary to ensure timely and accurate return of Title IV funds. Views of responsible officials: Please refer to the attached corrective action plan.