Finding Text
Finding number: 2024-010 Federal agency: U.S. Department of Education Programs: Student Financial Assistance Cluster Assistance Listing #: 84.063 Award year: 2024 Criteria According to 34 CFR 668.22(e)(4): Total amount of unearned title IV assistance to be returned. The unearned amount of title IV assistance to be returned is calculated by subtracting the amount of title IV assistance earned by the student as calculated under paragraph (e)(1) of this section from the amount of title IV aid that was disbursed to the student as of the date of the institution's determination that the student withdrew. Condition The Financial Aid Office is responsible for completing the Return of Title IV calculation to determine how much Title IV aid the student earned and how much must be returned to the Department of Education. Once the Return of Title IV calculation is completed, the College is responsible for adjusting the student’s billing statement and returning unearned Title IV funds through the U.S. Department of Education’s Grant Management System (“G5”). The College has 45 days from the date they determined the student withdrew to return any unearned portions of Title IV funds. During our testing, we noted 8 students, out of a sample of 25, where the college was unable to provide support showing the aid was returned. Cause The College did not ensure that the regulations were met in regard to refunding Title IV funds when maintaining support for returned aid. Effect The College was unable to provide support showing the correct amount of Title IV funds were returned to the Department of Education. Questioned Costs $7,396 Perspective Our sample was not, and was not intended to be, statistically valid. Of the 25 students selected for testing, 8 students, or 32% of our sample, did not have proper supporting documentation showing the proper return of Title IV funds returned. Identification as a Repeat Finding, if applicable Not applicable Recommendation The College should review their current policies and procedures to ensure proper support is maintained. View of Responsible Officials The College agrees with the finding and has implemented the corrective action plan listed within the management corrective action plan section of this report