Finding Text
Federal Agency: Department of Education Federal Program Title: Student Financial Aid Cluster – Various Assistance Listing Numbers: Various Federal Award Identification Number and Year: Various Pass-Through Agency: N/A Pass-Through Number: N/A Award Period: July 1, 2024, through June 30, 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(h)(4)(ii) states within 30 days of the date of the institution's determination that the student withdrew, an institution must send a notice to any student who owes a title IV, HEA grant overpayment as a result of the student's withdrawal from the institution in order to recover the overpayment in accordance with paragraph (h)(4)(i) of this section. Additionally, The Code of Federal Regulations, 34 CFR 668.22(f)(2)(i), states 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. Condition: During our testing of Return of Title IV funds, we noted 3 of the 10 students did not have funds returned to COD within the required 45-day period. Furthermore, we noted 1 of the 10 students tested has used an incorrect percentage attended causing the Academy to incorrectly calculate the return of Title IV funds. Lastly, we noted 1 of the 10 students did not have their return of funds calculated within 45 day period. Questioned costs: $25 Context: During our testing, it was noted the Academy does not have a process in place to ensure timeliness and accuracy of Return of Title IV calculations. Cause: The Academy did not have a process in place to ensure timely return of funds to COD. Additionally, the Academy used the incorrect number of break days thus the students percentage of days attended was miscalculated. Effect: The Academy is not completing accurate R2T4 calculations and following timely return of funds as defined by the regulations. Repeat finding: No Recommendation: We recommend the Academy reevaluate its policies around accurate and timely R2T4 calculations. Views of responsible officials: There is no disagreement with the audit finding.