Finding Text
Finding 2022-001 Return of Title IV Funds (Significant Deficiency) Federal Programs U.S. Department of Education Federal Pell Grant Program (Assistance Listing Number 84.063) Federal Direct Student Loans (Assistance Listing Number 84.268) Federal Supplemental Educational Opportunity Grants (Assistance Listing Number 84.007) Award Year Ended May 31, 2022 Repeat Finding: No Criteria: Pursuant to the 34 CFR 668.22(j)(2), an institution is required to determine the withdrawal date for a student who withdraws without providing notification to the institution no later than 30 days after the end of the earlier of the (1) payment period or period of enrollment, (2) academic year in which the student withdrew, or (3) educational program from which the student withdrew to allow for the timely calculation and return of Title IV funds as required. Pursuant to the 34CFR 668.22(e), an institution is required to calculate the amount of Title IV assistance earned by the student once the institution has determined the withdrawal date in accordance with the 34 CFR 668.22(j), and pursuant to the 34 CFR 668.22(g), an institution is required to calculate and return unearned aid in the order as required: the lesser of the total amount of unearned Title IV assistance to be returned as calculated under 34CFR 668.22(e)(4); or an amount equal to the total institutional charges incurred by the student for the payment period or period of enrollment multiplied by the percentage of Title IV grant or loan assistance that has not been earned by the student, as described in 34CFR 668.22(e)(3). Pursuant to 34 CFR 668.22(j)(1), an institution must return the amount of Title IV funds for which it is responsible as soon, but no later than 45 days, after the date of the institution's determination that the student withdrew. Condition and Context: For one of the fifteen students we tested, we identified an instance where the College did not determine the refund amount or provide the refund related to this withdrawal/leave of absence within the required timeline. The College became aware of the withdrawal in February 2022, the refund was calculated and processed in June 2022. Cause: Communication from the College?s Registrar?s Office to the Student Financial Assistance Office did not occur timely. Effect: Return of Title IV funds for this student were not processed timely. Questioned Costs: None, as refunds were processed in June 2022. Recommendation: Management should consider automating notification to the Student Financial Assistance Office within the Banner system. Alternatively, policies and procedures should be modified to ensure timely communication from the College?s Registrar?s Office to Student Financial Assistance Office whenever there is a student withdrawal or leave of absence. Views of Responsible Officials: Management acknowledges the finding identified above and has separately submitted a Corrective Action Plan intended to prevent the reoccurrence of this finding.