Finding 384691 (2023-004)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-03-26
Audit: 297799
Organization: Columbia College (MO)
Auditor: Brown Edwards

AI Summary

  • Core Issue: Refund calculations for Title IV funds were incorrect due to not excluding scheduled breaks and using the wrong withdrawal dates.
  • Impacted Requirements: The college failed to follow guidelines for calculating total days and institutional charges for refunds.
  • Recommended Follow-Up: Implement procedures to ensure accurate Title IV refund calculations and provide staff training on compliance regulations.

Finding Text

2023-004 Incorrect Calculation of Title IV Funds Refunds (Significant Deficiency) Department of Education Criteria: The total number of calendar days in a payment period or period of enrollment includes all days within the period that a student was scheduled to complete, except that scheduled breaks of at least five consecutive days are excluded from the total number of calendar days in a payment period or period of enrollment and the number of calendar days completed in that period. If a student withdrawals by providing notification to designated officials, the withdrawal date is the date notification was provided. Institutional charges used in the refund calculation are the charges that were initially assessed the student for the entire payment period. Condition: From a population of 61 students that withdrew during the fiscal year, we tested seven and noted that four of the seven had refund calculations prepared. From these calculations we noted the following: 1. Breaks of five or more consecutive days were not deducted from total days in all refunds. 2. The date of the college’s determination was used as the withdrawal date for three of the four students. 3. Institutional charges for the period used in the refund calculation included tuition and fee credits processed due to the withdrawal for two of the four students. Cause: The College’s Thanksgiving break of five consecutive days and Spring break of nine consecutive days were not deducted from the total days in the semester for any refund calculation during the fiscal year. Three of the student’s refund calculations were prepared using the college’s date of determination instead of the date of the student’s withdrawal. The college processed a credit for tuition and fees when the student withdrew, and this credit reduced institutional charges in the refund calculation for two of the four students. Effect: The refund was incorrect for all four students that had refund calculations prepared. Repeat Finding from a Prior Year: No. Recommendation: We recommend the College put procedures in place for accurate preparation and calculation of Title IV refunds. Management Response: We concur with this finding. During the 2022-2023 academic year, the Office of Financial Aid experienced much transition. The office is now fully staffed. In addition, the staff attend internal and external training on R2T4 processing along with other regulations. System updates are performed during the Fall semester for the next year. During this update, R2T4 parameters are set and monitored to ensure accuracy. In addition, the R2T4 calculations now include adjustments made to the students’ account at the time of withdrawal.

Corrective Action Plan

2023-004 Incorrect Calculation of Title IV Funds Refunds (Significant Deficiency) Criteria: The total number of calendar days in a payment period or period of enrollment includes all days within the period that a student was scheduled to complete, except that scheduled breaks of at least five consecutive days are excluded from the total number of calendar days in a payment period or period of enrollment and the number of calendar days completed in that period. If a student withdrawals by providing notification to designated officials, the withdrawal date is the date notification was provided. Institutional charges used in the refund calculation are the charges that were initially assessed the student for the entire payment period. Condition: From a population of 61 students that withdrew during the fiscal year, we tested seven and noted that four of the seven had refund calculations prepared. From these calculations we noted the following: 1. Breaks of five or more consecutive days were not deducted from total days in all refunds. 2. The date of the college’s determination was used as the withdrawal date for three of the four students.3. Institutional charges for the period used in the refund calculations included tuition and fee credits processed due to the withdrawal for two of the four students. Action Taken: We concur with this finding. During the 2022-2023 academic year, the Office of Financial Aid experienced much transition. The office is now fully staffed. In addition, the staff attend internal and external training on R2T4 processing along with other regulations. System updates are performed during the Fall semester for the next year. During this update, R2T4 parameters are set and monitored to ensure accuracy. In addition, the R2T4 calculations now include adjustments made to the students’ account at the time of withdrawal. Responsible Party: Lola Kennedy, Senior Director of Financial Aid Point of Contact: Lola Kennedy, Senior Director of Financial Aid (lkennedy@columbiasc.edu) Expected date of correction: August 1, 2023

Categories

Student Financial Aid Significant Deficiency

Other Findings in this Audit

  • 384688 2023-001
    Material Weakness
  • 384689 2023-002
    Significant Deficiency
  • 384690 2023-003
    Significant Deficiency
  • 384692 2023-005
    Significant Deficiency
  • 384693 2023-006
    Significant Deficiency
  • 384694 2023-007
    Significant Deficiency Repeat
  • 961130 2023-001
    Material Weakness
  • 961131 2023-002
    Significant Deficiency
  • 961132 2023-003
    Significant Deficiency
  • 961133 2023-004
    Significant Deficiency
  • 961134 2023-005
    Significant Deficiency
  • 961135 2023-006
    Significant Deficiency
  • 961136 2023-007
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $10.53M
84.063 Federal Pell Grant Program $3.17M
84.425 Education Stabilization Fund $1.34M
84.027 Special Education_grants to States $990,101
84.007 Federal Supplemental Educational Opportunity Grants $182,075
84.336 Teacher Quality Partnership Grants $173,922
84.033 Federal Work-Study Program $83,632
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $28,290
93.859 Biomedical Research and Research Training $1,538