Finding Text
FINDING 2025-001: Incorrect Refund Calculations FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION PROGRAM NAME: FEDERAL PELL GRANT PROGRAM AND FEDERAL DIRECT LOAN PROGRAM Student Financial Aid Cluster For the Year Ended May 31, 2025 Compliance Requirement: Special Tests and Provisions (N.) - Return of Title IV Funds Criteria: An institution must use the Return to Title IV refund calculation (34 CFR 668.22). Condition: We tested twelve drop students and found six incorrect refund calculations. We consider this finding to be a significant deficiency. Cause: The condition was caused by not including the proper break days from the students' Return to Title IV calculations. Effect: The result is the Institution returned funds to the Department of Education that should have been retained by the Institution. Question Costs: $692 Statistical sampling was not used when making sample selections. Recommendation: We recommend the Institution credit the appropriate students' accounts $692 and increase controls over the Return to Title IV refund calculation. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.