Finding Text
FINDING 2025-002 – CONTROLS AND NONCOMPLIANCE OVER SPECIAL TESTS AND PROVISIONS – RETURN OF FUNDS Federal Department: Department of Education Assistance Listing Number(s): 84.063, 84.007, 84.033 Program Name(s): Student Financial Assistance Cluster Questioned Costs: $268 Criteria Federal regulations dictate when a recipient of Title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV aid earned by the student as of the student’s withdrawal date. If the total amount of Title IV assistance earned by the student is less than the amount that was disbursed to the student or on his or her behalf as of the date of the institution’s determination that the student withdrew, the difference must be returned to the Title IV programs and no additional disbursements may be made to the student for the payment period or period of enrollment, per the provisions 34 CFR 668.22(a)(1) through (a)(5)). Condition During our compliance testing, we noted 1 out of the 7 students selected for testing had their total term days incorrectly calculated by the College. However, this student was not required to have aid returned. This was for the Summer 2024 semester; there were no incorrectly calculated days noted from our testing of Fall 2024 and Spring 2025 students. Additionally, we noted 1 student of 7 selected from the Fall 2024 semester testing did not have their aid of $268 returned. We additionally noted that review of the students’ worksheets was not properly documented. Questioned Costs None Context A sample of 7 students were selected for compliance testing. 1 student did not have their total term days calculated correctly and 1 student did not have their aid returned. Effect When the total term days are incorrectly calculated, there is a risk that the amount of funds required to be returned is incorrectly calculated. Additionally, lack of documented review of calculations could lead to incorrectly calculated days and unreturned aid. Cause The cause appears to be an error in the processing of the information, due to turnover in the Student Financial Aid department. Identification as a Repeat Finding, if Applicable This matter is considered a repeat finding, and was reported previously as finding 2024-003. Recommendation We are aware that the Student Financial Aid Department updates to its procedures term days calculations and return of funds determination. We recommend that the College continue these efforts to ensure future compliance with all applicable return of funds requirements. Views of Responsible Officials and Planned Corrective Actions See Corrective Action Plan.