Finding Text
2025-102 Return of Title IV Funds Not Made Within the Required Timeline Assistance Listing Number: 84.063 Program Title: Federal Pell Grant Program Compliance Requirement: Special Tests and Provisions – Return of Title IV Funds Federal Agency: United States Department of Education FAIN and year: P063P203385, 2024-2025 Finding Type: Significant Deficiency in Internal Control Known Questioned Costs: $0 Criteria: 2 CFR section 200.303 requires that nonfederal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the nonfederal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Awards. Institutions are responsible for returning funds to students and Title IV programs as appropriate if students withdraw, drop out or are expelled from their program of study within a 45-day period from the date of withdrawal. Condition: Title IV funds for two of the nine students selected for testing for the return of Title IV funds were returned to the Department of Education after the 45-day time period. Cause: Human error resulted in delays in returning funds to the Department of Education. The controls in place are manual only and did not operate to prevent the late returns. Effect: Noncompliance with the return of funds could result in future loss of Pell Award funding. Recommendation: The School should implement a process possibly with the use of a software program that would identify when funds are due back based on the student’s withdrawal date. Management Response: See attached Corrective Action Plan.