Finding 30766 (2022-003)

Significant Deficiency Repeat Finding
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-03-30

AI Summary

  • Core Issue: The College failed to return unearned Title IV aid on time and made calculation errors, impacting compliance with federal regulations.
  • Impacted Requirements: Non-compliance with 34 CFR 668.22, leading to questioned costs totaling $1,443.
  • Recommended Follow-Up: Assign a qualified financial aid staff member to regularly review R2T4 calculations and returns to enhance internal controls and ensure compliance.

Finding Text

Return of Title IV (R2T4) Calculations Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2021-22 Financial Aid Year Condition: When students withdrew either officially or unofficially, the College did not always return unearned Title IV aid timely. Additionally, the College did not always calculate unearned Title IV funds correctly. Criteria: 34 CFR 668.22 Questioned Costs: $1,443 Context: Out of 25 students, 1 student who withdrew during the audit period tested had funds returned late. The late return within the fiscal year was one day past due and totaled $1,990 in FDL. Additionally, out of 25 R2T4s tested, there were 2 with a calculation error due to the wrong calendar. These calculation errors resulted in $631 of FDL questioned costs and an over return of $139 of FDL. There was one student who did not begin attendance in one class resulting in a return of $812 of Pell needed. Lastly, there were two post-withdrawal disbursements that were not processed timely. Cause: This was an oversight by the College. Effect: Incorrect amount of unearned Title IV funds returned and returns of Title IV funds were not performed timely. Identification as repeat finding, if applicable: 2021-003 Recommendation: We recommend an individual in financial aid with the appropriate level of experience periodically review student's R2T4 calculations and returns to help ensure that internal controls over such process can operate effectively and achieve compliance. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Corrective Action Plan

Return of Title IV (R2T4) Calculations Planned Corrective Action: The College is now taking additional steps to check R2T4 calculations. While our 3rd party servicer processes R2T4's, our Student Finance Clerk has been trained in this process as well. The Student Finance Clerk will complete the R2T4 internally, and then compare to confirm that dates and calculations match before refunds are completed. There is also an internal countdown between the Registrar and the Student Finance Clerk that tracks withdrawals and the days remaining until R2T4 needs to be completed. Person Responsible for Corrective Action Plan: Lyndsi Romero, Director of Financial Aid Anticipated Date of Completion: June 30, 2023

Categories

Internal Control / Segregation of Duties Student Financial Aid Significant Deficiency

Other Findings in this Audit

  • 30767 2022-003
    Significant Deficiency Repeat
  • 607208 2022-003
    Significant Deficiency Repeat
  • 607209 2022-003
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $3.52M
84.063 Federal Pell Grant Program $1.37M
84.425 Covid-19 Education Stabilization Fund Heerf - Institutional Portion $1.24M
84.038 Federal Perkins Loan Program $1.02M
84.425 Covid-19 Education Stabilization Fund Heerf -- Student Aid Portion $871,864
84.007 Federal Supplemental Educational Opportunity Grants $53,661
84.033 Federal Work-Study Program $29,734