Finding Text
2025-003: Late Refunds - Student Financial Assistance Cluster - Federal Direct Student Loans - ALN #84.268 - Year Ended December 31, 2025 Compliance Requirement: Special Tests and Provisions (N) Criteria: The Department of Education requires that all refunds be made within 45 days of a student’s withdrawal (34 CFR 668.22, 685.306). Condition: We tested four drop students in our sample and noted two late refunds. We consider this finding to be a material weakness and an instance of noncompliance. This finding was not a repeat finding. Cause: The condition was caused by enrollment data of drop status not relaying to Campus Ivy Core system thus Financial Aid staff was not notified timely of the drops. Effect: The result is the College retained funds which should have been returned to the Department of Education. Questioned Costs: $14,757 Students Direct Loan Total Drop Universe Dollars Refunded 4 $ 31,990 $ 31,990 Drop Universe Dollars Received 5 109,306 109,306 Drop Sample Dollars Received 2 58,594 58,594 Findings 2 14,757 14,757 Statistical sampling was not used in the making sample selections. Recommendation: We recommend the College increase controls over monitoring drop students and paying refunds. Views of Responsible Officials: Management agrees with this Single Audit Finding and a response is included in the Corrective Action Plan.