Finding Text
Information of Federal Program:
Student Financial Aid Cluster
Federal Pell Grant Program – CFDA No. 84.063
Federal Direct Student Loans – CFDA No. 84.268
Federal Supplemental Educational Opportunity Grant – CFDA No. 84.007
Federal Work-Study Program – CFDA No. 84.033
Criteria: When a recipient of Title IV grant or loan assistance withdraws from an institution
during a payment period or period of enrollment in which the recipient began attendance,
the institution must determine the amount of Title IV grant or loan assistance that the
student earned as of the student’s withdrawal date (34 CFR section 668.22).
Condition: During the testing of the return of Title IV funds, it was noted that on six (6) of
six (6) tested calculation of funds to be returned had no documentation to determine if
returns were completed timely as the College did not retain the lists of students associated
with drawdowns and/or returns.
Cause: The College did not have proper procedures in place regarding record retention.
Effect or Potential Effect: The deficiencies in the design and operation of the internal controls
in this area could result in the institution not returning Federal funds as required by Title
IV regulations or returning an incorrect amount.
Questioned Costs: None
Context: During our testing of return of Title IV funds, it was noted that Fort Scott
Community College’s internal controls over posting to student accounts broke down after
there was a change in staff. Six (6) of six (6) files tested, the College was unable to produce
reports showing what students were included with each drawdown, including returns, from
Department of Education, therefore resulting inability to complete the test.
Repeat Finding: No Recommendation: Policies and procedures should be written to provide internal control over
the documentation used to complete the drawdowns, including returns, from Department
of Education. We recommend the College establish a communication and record retention
process that allows for the notification of students withdrawing and a control in place that
allows the financial aid department to know the student financial aid was returned to
Department of Education within the required timeframe.
Views of responsible officials and planned corrective action: Management is in agreement
and will implement a Corrective Action Plan, see pages 72-75 of the current year audit.