Finding Text
AL#: 84.033, 84.007, 84.063, 84.268 Student Financial Aid Cluster Award Year: 2025 Criteria: Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) require that, where there are Title IV funds to be returned, that they be deposited or transferred into the student financial aid account or an electronic funds transfer initiated to the Department of Education as soon as possible, but no later than 45 days after the institution determines that a student withdrew. Condition: There were eight of sixty students tested where the College failed to initiate the electronic funds transfer to the Department of Education within the 45-day timeframe. Context: We addressed this matter with College management who are aware of the requirements to properly review and when applicable, return funds in a timely manner. Effect: Failure to properly review and adhere to policies and procedures can lead to noncompliance and the misappropriation of federal funds that are not detected during the normal course of business. Cause: The lack of compliance is due to the College failing review student withdrawals in a timely manner. Recommendation: We recommend the College review and update its policies and procedures to ensure all Title IV funds are reviewed, and returned in a timely manner. Views of Responsible Officials and Planned Corrective Action: Management concurs with the finding. The College is in the process of implementing controls and procedures to ensure that all Title IV funds are properly monitored and reviewed. Questioned Costs: None.