Finding Text
FINDING NO. 2022-001 Federal Program: CFDA 84.063 Federal Pell Grant Program Category: Compliance ? Special tests and provision ? Return of Title IV funds. Criteria: Per 34 CFR Section 668.173(b), returns of Title IV funds are required to be deposited or transferred into the SFA account or electronic fund transfers initiated to U.S. Department of Education as soon as possible, but no later than 45 days after the date the institution determines that the student withdrew. Title 2 U.S. Code of Federal Regulations Part 200 (2 CFR part 200), Uniform Administrative Requirements, Cost Principles, and Audit Requirements, section 200.303 also states that non-federal entities must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: During our test work over the return of Title IV funds, we noted that in eight cases (8) instances out of a sample of 25 students selected, the Institution returned the funds after the allowable 45 days. Questioned Costs: No questioned costs were identified. Perspective Information: We selected twenty-five (25) students, from the population of withdrawn students during the fiscal year 2021 - 2022. Cause and effect: The return calculation in those cases was performed at the same time that the institution was in the process of reviewing the regulations outlined in the US Department of Education federal notice with an effective date of July 2021 and the usual training made by the institution in these regulatory matters had not yet been carried out. As a result, the federal funds in those cases were not returned timely. Recommendation: The Institution should continue reinforcing the Return of Title IV procedures and establish close coordination between the Student Financial Aid Office and the Register office, in order to improve compliance with federal regulations and avoid a similar situation in the future. Views of Responsible Officials and Planned Corrective Actions: See Institution?s corrective action plan.