Finding Text
Finding 2023-007: Refunds made in Improper Sequence Compliance Requirement: Special Tests and Provisions (N.) - Return of Title IV Funds Criteria: Refunds made for withdrawn students must be returned in the sequence described in 34 CFR 668.22. Condition: We tested thirty-two drop students and and noted three refunds which were not refunded in the proper sequence. We consider this finding to be an instance of non-compliance. Cause: The condition was caused by applying the percentage of aid due back to all fund sources and not in the proper sequence described in 34 CFR 668.22. Effect: The result is the Institution refunded incorrect amounts to the Department of Education. Question Costs: $2,811 Statistical sampling was not used when making sample selections. Recommendation: We recommend the Institution refund $2,811 to the Department of Education, credit $2,563 to the students' accounts and increase controls over refunds. There is no liablity for the remaining $248, as this was due to overrefunding loans. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.