Finding Text
FINDING 2023-001: INCORRECT REFUND CALCULATIONS
FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION PROGRAM NAME: SFA CLUSTER
ALN: 84.063, 84.268
FEDERAL AWARD YEAR: 2021-2022, 2022-2023 Compliance Requirement: Special Tests and Provisions - Return of Title IV Funds (N.)
Criteria: An institution must use the Return to Title IV refund calculation (34 CFR 668.22). Condition: We tested twelve drop students and found three incorrect refund calculation. We consider this
finding to be a material weakness. Cause: The condition was caused by using an incorrect amount of days in Step 2 of the Return to Title IV refund calculation for one student and by not fully returning inadvertent overpayments of loans for the other two students. Effect or Potential Effect: The result is the College refunded incorrect amounts. Statistical sampling was not used when making sample selections. Questioned Costs : $1,048 Recommendation: As $1,048 has since been refunded to the Department of Education, we recommend the
Institution review the remaining refunds for accuracy and increase controls over refunds. There is no
liability for the remaining $78, as this was caused by over-refunding loans. Views of Responsible Officials: The College agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.