Finding 34739 (2022-002)

-
Requirement
N
Questioned Costs
$1
Year
2022
Accepted
2023-04-12

AI Summary

  • Core Issue: A student’s unearned Title IV funds were not returned within the required 45 days after withdrawal, leading to non-compliance.
  • Impacted Requirements: Compliance with 34 CFR part 668 regarding the timely return of Title IV funds.
  • Recommended Follow-up: Improve controls by involving multiple staff members in the withdrawal process to ensure accurate and timely fund returns.

Finding Text

REFERENCE 2022-002 ? Student Financial Assistance ? Return of Title IV Funds Federal Agency: U.S. Department of Education Program: Student Financial Assistance Cluster Award(s) Federal Pell Grant Assistance Listing Number(s): 84.063 Award Year: July 2021 through June 20, 2022 CRITERIA: 34 CFR part 668 establishes rules governing the student withdrawal process including the return of unearned Title IV aid within 45 days of a student?s withdrawal. CONDITION: Through our Return of Title IV Funds testing, we noted 1 out of 15 selections for which the students began attendance but subsequently withdrew and their unearned title IV funds were not returned within 45 days of the withdrawal date. QUESTIONED COSTS: $668 CAUSE/EFFECT: The incorrect withdrawal date was inadvertently entered into Banner by admissions when they updated the withdrawal code. They system was showing a withdrawal date over the 60% threshold, but the withdrawal form the student and SFA office signed was prior to the 60% threshold date. As such, the required return of funds was not calculated timely and the College was not in compliance with the Return of Title IV Funds requirements. RECOMMENDATION: The auditor recommends the College enhance its controls and incorporate multiple individuals in the process to ensure that Title IV refunds are calculated and made timely. VIEW OF RESONSIBLE OFFICIALS: Management concurs with this finding and will reassess controls, review these accounts and implement controls to ensure that timely calculations and refunds are made.

Corrective Action Plan

2) Finding 2022-002 - Student Financial Assistance ? Return of Title IV Funds Management?s Response: Management understands the requirements specific to calculating and returning unearned Title IV aid. Management acknowledges and agrees with the findings as presented. Views of Responsible Officials and Corrective Action: We will reassess controls, review these processes and implement controls to ensure that timely calculations and return of funds are made. Furthermore, the funds noted were sent back subsequent to year end. Name of Responsible Person: Jennifer O'Linger, Director of Financial Aid Implementation Date: Immediately

Categories

Questioned Costs Student Financial Aid

Other Findings in this Audit

  • 34740 2022-003
    Significant Deficiency
  • 34741 2022-003
    Significant Deficiency
  • 34742 2022-003
    Significant Deficiency
  • 611181 2022-002
    -
  • 611182 2022-003
    Significant Deficiency
  • 611183 2022-003
    Significant Deficiency
  • 611184 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $6.93M
84.063 Federal Pell Grant Program $2.14M
84.031 Higher Education_institutional Aid $1.41M
43.008 Education $302,010
84.048 Career and Technical Education -- Basic Grants to States $187,192
84.007 Federal Supplemental Educational Opportunity Grants $69,500
47.076 Education and Human Resources $32,648
17.258 Wia Adult Program $27,182
17.259 Wia Youth Activities $12,395
23.002 Appalachian Area Development $10,501
84.002 Adult Education - Basic Grants to States $9,536
84.033 Federal Work-Study Program $8,907
17.278 Wia Dislocated Worker Formula Grants $5,565
12.600 Community Investment $1,120