FAC Explorer

Finding 1175803 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-03-01
Audit: 389711
Organization: H Councill Trenholm State Community College (AL)
Auditor: FORVIS MAZARS

AI Summary

  • Core Issue: The institution failed to return Title IV funds within the required 45 days for 2 out of 14 students who withdrew.
  • Impacted Requirements: This noncompliance relates to the Return of Title IV Funds regulations under 34 CFR 668.22(j).
  • Recommended Follow-Up: Reinforce monitoring procedures to ensure timely processing of student withdrawals and compliance with deadlines.

Finding Text

Finding 2025-001 – Noncompliance with R2T4 Timeliness Requirements Student Financial Assistance Cluster #34.007, #84.033, #84.063 U.S. Department of Education (ED) Award Period: October 1, 2024 – September 30, 2025 Criteria or Specific Requirement: Return of Title IV Funds: The Code of Federal Regulations, 34 CFR 668.22(j), states that an institution must return the amount of Title IV funds for which it is responsible as soon as possible but no later than 45 days after the date of the institution's determination that the student withdrew. Condition: Title IV funds were not returned to the ED within the required 45 days of the institution’s determination that the student withdrew for 2 out of 14 students tested. Questioned costs: None noted as finding is timing related. Cause: The untimely returns for the 2 students resulted from administrative delays related to the processing of individual student withdrawal information. Based on the results of testing, existing procedures generally operated as intended but were not applied timely in these isolated instances. Effect: As a result, the institution did not fully comply with the Return of Title IV Funds timeliness requirement for the affected students. Identification as a repeat finding: Not a repeat finding. Recommendation: We recommend that the College reinforce existing procedures related to monitoring Return of Title IV Funds deadlines to help ensure consistent and timely processing for all student withdrawals. View of responsible official and planned corrective action: There is no disagreement with the audit finding. See management’s corrective action plan.

Corrective Action Plan

Corrective Action: The College will implement a revised withdrawal process that shifts outreach and financial aid counseling to occur before a student completes and submits the withdrawal form, rather than after submission. This change is designed to eliminate delays in withdrawal processing and support timely institutional action. Under the current process, outreach to students occurred after the withdrawal form was submitted, which resulted in delays in routing the form to the Records Office for processing. The revised process will require that outreach and financial aid counseling occur before students complete the withdrawal form. Students who indicate they are receiving financial aid will be encouraged to consult with the Financial Aid Office prior to completing the withdrawal form. During this consultation, students will be informed of the financial implications of withdrawing and be made aware of available institutional resources and services that may assist them in remaining enrolled, when appropriate. The revised withdrawal form will allow students to complete and submit it online directly to the Records Office for immediate processing. Eliminating post-submission outreach requirements will remove prior delays and allow the Records Office to promptly process the withdrawal. Receipt of the completed withdrawal form will serve as the institution’s date of determination. Following submission, the Financial Aid Office will complete the Return to Title IV (R2T4) calculation within the required 45-day timeframe and return any required funds. Timely processing of withdrawals will ensure continued compliance with all R2T4 regulatory requirements. Anticipated Completion Date: The College will implement this revised withdrawal process immediately (March 2026). Responsible Party: Breshawn Skinner, Director of Financial Aid, in coordination with the Records Office

Categories

Student Financial Aid Subrecipient Monitoring Reporting

Programs in Audit

ALN Program Name Expenditures
84.063 FEDERAL PELL GRANT PROGRAM $8.97M
84.031 HIGHER EDUCATION INSTITUTIONAL AID $3.70M
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $534,849
11.028 CONNECTING MINORITY COMMUNITIES PILOT PROGRAM $514,091
84.002 ADULT EDUCATION - BASIC GRANTS TO STATES $408,800
84.047 TRIO UPWARD BOUND $224,296
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $192,161
84.033 FEDERAL WORK-STUDY PROGRAM $93,769
10.558 CHILD AND ADULT CARE FOOD PROGRAM $35,432