Finding 1216428 (2025-005)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-06-03
Audit: 402942
Organization: Richland Community College (IL)
Auditor: SIKICH CPA LLC

AI Summary

  • Core Issue: One out of 19 student refund calculations was incorrect, leading to noncompliance with federal regulations regarding Title IV funds.
  • Impacted Requirements: The college failed to accurately calculate and return Title IV funds as required by 34 CFR 668.22, specifically regarding withdrawal calculations.
  • Recommended Follow-Up: Refund $752 to the Department of Education, credit the same amount to the affected student's account, and enhance controls over refund calculations.

Finding Text

2025-005 - Student Financial Aid Cluster - (a) Federal Supplemental Educational Opportunity Grants (b) Federal Work Study Program (c) Federal Pell Grant Program (d) Federal Direct Student Loans, Assistance Listing No. (a) 84.007 (b) 84.033 (c) 84.063 (d) 84.268 - Year Ended June 30, 2025 Criteria: 34 CFR 668.22 (a)(1) states “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 grant or loan assistance that the student earned as of the student's withdrawal date in accordance with paragraph (e) of this section.” 34 CFR 668.22 (e)(2) states, “The percentage of title IV grant or loan assistance that has been earned by the student is - (i) Equal to the percentage of the payment period or period of enrollment that the student completed (as determined in accordance with paragraph (f) of this section) as of the student's withdrawal date, if this date occurs on or before - (A) Completion of 60% of the payment period or period of enrollment for a program that is measured in credit hours; or…” 34 CFR 668.22(j) notes, “(1) An institution must return the amount of title IV funds for which it is responsible under paragraph (g) of this section as soon as possible but no later than 45 days after the date of the institution's determination that the student withdrew as defined in paragraph (l)(3) of this section. The timeframe for returning funds is further described in § 668.173(b).” Condition: We tested 19 drop students and found one incorrect refund calculation (5.3%). We consider this finding to be an instance of noncompliance in relation to Special Tests and Provisions and is not a repeated finding. Statistical sampling was not used. Questioned Costs: $752 Cause and Effect: The cause was due to error in the Financial Aid Department. The effect is Return of Title IV funds calculations resulted in incorrect amounts returned by the College. Recommendation: We recommend the College refund $752 to the Department of Education, credit $752 to the appropriate student’s account and increase controls over refund calculations. Views of Responsible Officials: Management agrees with this Single Audit Finding and a response is included in the Corrective Action Plan.

Corrective Action Plan

2025-005 - Student Financial Aid Cluster - (a) Federal Supplemental Educational Opportunity Grants (b) Federal Work Study Program (c) Federal Pell Grant Program (d) Federal Direct Student Loans, Assistance Listing No. (a) 84.007 (b) 84.033 (c) 84.063 (d) 84.268 - Year Ended June 30, 2025 Criteria: 34 CFR 668.22 (a)(1) states “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 grant or loan assistance that the student earned as of the student's withdrawal date in accordance with paragraph (e) of this section.” 34 CFR 668.22 (e)(2) states, “The percentage of title IV grant or loan assistance that has been earned by the student is - (i) Equal to the percentage of the payment period or period of enrollment that the student completed (as determined in accordance with paragraph (f) of this section) as of the student's withdrawal date, if this date occurs on or before - (A) Completion of 60% of the payment period or period of enrollment for a program that is measured in credit hours; or…” 34 CFR 668.22(j) notes, “(1) An institution must return the amount of title IV funds for which it is responsible under paragraph (g) of this section as soon as possible but no later than 45 days after the date of the institution's determination that the student withdrew as defined in paragraph (l)(3) of this section. The timeframe for returning funds is further described in § 668.173(b).” Condition: We tested 19 drop students and found one incorrect refund calculation (5.3%). We consider this finding to be an instance of noncompliance in relation to Special Tests and Provisions and is not a repeated finding. Statistical sampling was not used. Responsible Person: Director, Financial Aid and Veteran Affairs Corrective Action Plan: The responsible party will thoroughly review each Return to Title IV (R2T4) calculation to ensure that it was accurately completed. Additionally, the responsible party will review current R2T4 procedures, implement a secondary review process for R2T4 calculations, and will conduct periodic reviews to ensure each R2T4 calculation was accurately completed. Lastly, the Financial Aid and Veteran Affairs Office will evaluate whether the recent transition to Jenzabar Financial Aid and Jenzabar One can strengthen compliance and internal controls. Implementation Date: May 2026

Categories

Student Financial Aid Special Tests & Provisions

Other Findings in this Audit

  • 1216417 2025-003
    Material Weakness Repeat
  • 1216418 2025-003
    Material Weakness Repeat
  • 1216419 2025-003
    Material Weakness Repeat
  • 1216420 2025-003
    Material Weakness Repeat
  • 1216421 2025-004
    Material Weakness Repeat
  • 1216422 2025-004
    Material Weakness Repeat
  • 1216423 2025-004
    Material Weakness Repeat
  • 1216424 2025-004
    Material Weakness Repeat
  • 1216425 2025-005
    Material Weakness Repeat
  • 1216426 2025-005
    Material Weakness Repeat
  • 1216427 2025-005
    Material Weakness Repeat
  • 1216429 2025-006
    Material Weakness Repeat
  • 1216430 2025-006
    Material Weakness Repeat
  • 1216431 2025-006
    Material Weakness Repeat
  • 1216432 2025-006
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.063 FEDERAL PELL GRANT PROGRAM $3.89M
84.268 FEDERAL DIRECT STUDENT LOANS $734,916
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $72,900
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $61,595
84.033 FEDERAL WORK-STUDY PROGRAM $42,472
84.002 ADULT EDUCATION - BASIC GRANTS TO STATES $32,236
10.902 SOIL AND WATER CONSERVATION $2,549