Finding Text
FINDING 2022-002: INCORRECT REFUND CALCULATION FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION
PROGRAM NAME: FEDERAL DIRECT LOAN PROGRAM ALN#: 84.268
YEAR ENDED: DECEMBER 31, 2022 Compliance Requirement: Special Tests and Provisions (N.) - Return of Title IV Funds. Criteria: An institution must use the Return to Title IV refund calculation (34 CFR 668.22). Condition: We tested eight drop students and found one incorrect refund calculation. This is a repeat finding of prior year Finding 2021-001. Cause: The condition was caused by not including a scheduled break of five days or more when calculating the percentage of Title IV earned in Step 2 of the Return to Title IV refund calculation. Effect: The result is the Institution returned funds to the Department of Education that should have been retained by the Institution.
Question Costs: $0 Statistical sampling was not used when making sample selections. Recommendation: We recommend the Institution credit $196 to the student's account and increase controls over refund calculations. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.