Finding Text
Finding Type. Immaterial Noncompliance / Significant Deficiency in Internal Control over Compliance (Special Tests and Provisions). Program. Student Financial Assistance Cluster; U.S. Department of Education; Assistance Listing Numbers 84.007, 84.033, 84.063, 84.268; Award Numbers P007A222008, P033A222008, P063P221633 and P268K231633. Criteria. The return of Title IV funds must be attributed to the semester in which the student earned the aid. Condition. When funds were returned through COD for one student, they were mistakenly applied to the Fall 2022 semester instead of being applied to the Spring 2023 semester, the semester in which the aid was earned. Cause. This condition was caused by a lack of detailed review of the return to Title IV distribution related to the student. Effect. As a result of this condition, the College corrected their mistake by removing the refund from the fall 2022 semester and applying it to the Spring 2023 semester on June 12, 2023. Due to the Covid Forbearance ruling, the unsubsidized loan did not accrue interest which made the correction more straight forward. Questioned Costs. No costs were required to be questioned as a result of this finding, inasmuch as our testing did not reveal any unallowed costs. Recommendation. We recommend that the College implement procedures to ensure that the return to Title IV calculation and distribution is being reviewed by a second individual. View of Responsible Officials. Management agrees with this finding and has prepared a Corrective Action Plan.