Finding Text
Finding 2022-004 - Significant Deficiency, Compliance Federal Award No. 84.268, 84.007, 84.379, 84.063 U.S. Department Of Education Student Financial Aid Cluster ? Special Tests and Provisions Criteria: According to the 2021-2022 Federal Student Aid Handbook a College must exclude institutionally scheduled breaks of five or more consecutive days from the Return to Title IV (R2T4) calculation as periods of nonattendance. The length of the scheduled break is determined by taking the last day that class is held before a scheduled break ? the next day is the first day of the scheduled break and the last day of the scheduled break is the day before the next class. Condition: In our nonstatistical sample of six students, it was noted for two students that the College used 105 days as the total days in the semester for the Fall 2021 semester when the College should have used 107 days as the total days in the semester for the Fall 2021 semester in the R2T4 calculation due to improperly counting two extra days for the institutionally scheduled break. Context: The College counted the last day of classes of November 19th, 2021 before the Thanksgiving break and the first day that classes resumed of November 29th, 2021 totaling 11 days as an institutionally scheduled break that reduced the total days used in the R2T4 calculation for the Fall 2021 semester. However, the College should have only used 9 days as the institutionally scheduled break was from November 20th, 2021 through November 28th, 2021. Effect: The improper calculation of the institutionally scheduled break dates resulted in the students retaining additional aid. Questioned Costs: Known questioned costs for the two students in which the exceptions were noted totaled $125. Likely questioned costs were not expected to exceed $1,000 for the R2T4 calculations performed in the Fall 2021 semester. Cause: Bethany College did not have proper processes and related controls in place to ensure that the correct number of days were used for institutionally scheduled breaks in the Fall 2021 semester. Indication Of Repeat Finding: This is not a repeat finding. Recommendation: The Financial Aid department should review and consider revisions to its processes and related controls in place to calculate the number of days included in institutionally scheduled breaks for the R2T4 calculation. Views Of Responsible Officials (Unaudited): The College concurs with the finding and has provided corrective action through adding additional review of the calculation of institutionally scheduled breaks and total days used in the R2T4 calculations. Completion Date: May 2022 Contact Person: Christoffer Larsen, Executive Director of Student Financial Services