Finding Text
2023-006 Return of Title IV Funds (Significant Deficiency) Department of Education, SFA Cluster Criteria: When a recipient of Title IV grant or loan assistance withdraws from a school during a payment period in which the recipient began attendance, the school must determine the amount of Title IV assistance earned by the student as of the student’s withdrawal date. If the total of the Title IV assistance earned by the student is less than the amount that was distributed to the student, the difference must be returned to the Title IV programs. A school must return Title IV funds to the programs from which the student received aid as soon as possible but no later than 45 days after the date of determination of a student’s withdrawal. Condition: From a population of 61 students that withdrew during the fiscal year, we tested seven and noted that six of the seven required a refund calculation and return of funds. Four of the students refund calculations were not completed in a timely fashion and two students that completed a withdrawal form did not have a refund calculations prepared. The College did not return Title IV funds for the two students that should have had refund calculations and the College did not return Title IV funds within 45 days after the date of determination of the student’s withdrawal for the four students that had refund calculations prepared. Cause: The two students that did not have refund calculations prepared withdrew electronically, however the withdrawal was not communicated to the Financial Aid Department in order to have a refund processed. Due to this, the students were considered by the College to have attended the entire semester and received failing grades for all classes. The refund calculations that were prepared for four students were prepared more than 45 days after the date of determination, thus, funds were returned more than 45 days after the date of determination of the student’s withdrawal date. Effect: The two students that withdrew but were not processed received failing grades in their classes instead of being withdrawn from their classes and no refund calculation was prepared. The four students that had refund calculations prepared were not prepared timely, resulting in Title IV funds not being returned timely. Repeat Finding from a Prior Year: No. Recommendation: We recommend the College put a process in place to ensure student withdrawal requests are processed properly and timely, and Title IV funds are returned timely. 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 communication list for withdrawals was updated with the Director of Financial Aid’s information to ensure the financial aid office receives all withdrawal information in a timely manner.