Finding 37528 (2022-001)

Significant Deficiency and Compliance U.S. Department of Education Student Financial Assistance Cluster Assistance Listing Numbers: 84.007, 84.033, 84.063 & 84.268 Award Year 2021-2022 2022-001 Special Test and Provisions - Return of Title IV Funds Criteria: In accordance with 34 CFR 668.173(b), the College must return Title IV funds within 45 days after the date the College determined the student withdrew. Condition: The College did not return unearned Title IV funds within the prescribed timeframe. Context: A sample of 20 R2T4 calculations revealed that one student had Title IV funds returned later than the allowable timeframe. All funds were returned in the proper order and amount. Effect: Title IV funds were not returned in a timely manner. Cause: The College did not have specific procedures in place to ensure timely reporting of withdraws by instructors, which in turn, did not provide enough time for the College to identify, prepare, and return funds within the required timeframe. Questioned Costs: The questioned costs would be insignificant due to the funds being returned in the proper order and amount. Recommendation: We recommend the College implement procedures to strictly comply with the requirements of 34 CFR 668.173 as it relates to the return of Title IV funds. Response: Through the processes the NCMC Financial Aid Office had in place, the affected student (an official withdraw) was missed until determination of unofficial withdraws at the end of the semester. To ensure the NCMC Financial Aid Office complies with the requirements of 34 CFR 668.173 as it relates to the return of Title IV funds, an additional weekly report was implemented to identify all withdraws and confirm an R2T4 calculation was performed (if required).