Finding Text
Federal Agency: U.S. Department of Education Federal Program Name: Student Financial Assistance Cluster Assistance Listing Number: 84.268 Federal Award Identification Number and Year: P268K255904 - 2025 Award Period: January 1, 2025 through December 31, 2025 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: The Federal Student Aid Handbook published by the Department of Education states that percentages are calculated to four decimal places and are rounded to three decimal places for the return of Title IV calculations. Condition: The Hazelden Betty Ford Graduate School (School) did not properly round to three decimal places for one of the student’s return to Title IV calculation in the 8 students tested. Questioned Costs: None reported – known and likely questioned costs are less than $25,000 Context: For one of 8 students tested, the return to Title IV calculation used was not rounding to the proper decimal point causing a $1 variance in the amount returned to the Department of Education. We tested 8 out of 30 total withdrawals during the year. Cause: The School's calculation was not set up correctly to round for winter and summer terms during 2025; however, it was resolved for fall 2025 and beyond. Effect: The School was not completing accurate return to Title IV calculations as defined by the regulations. Recommendation: We recommend the School review its policies and procedures relating to return of Title IV calculations to ensure the calculations are properly set up to round. Views of Responsible Officials: There is no disagreement with the audit finding.