Finding Text
2023–007: Return of Title IV (R2T4) Returning of Funds
Federal agency: U.S. Department of Education
Federal program title: Student Financial Aid Cluster
Assistance Listing Numbers: 84.007, 84.063, 84.268, 84.379
Award Period: July 1, 2022 through June 30, 2023
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria or specific requirement:
In accordance with 34 CFR 668.22(j)(1), An institution must return the amount of title IV funds for which it is responsible to return as soon as possible but no later than 45 days after the date of the institution's determination that the student withdrew.
Condition:
Funds were not returned to the Department of Education within 45 days of the College determining the withdrawal.
Questioned costs:
None.
Context:
During our testing of R2T4, 1 student out of 7 tested did not have the funds returned to the Department of Education within 45 days.
Cause:
Due to turnover, management did not ensure funds were returned through the Common Origination and Disbursement (COD) system in the required timeframe.
Effect:
The College is not in compliance with the Department of Education regulations.
Repeat Finding:
No
Recommendation:
We recommend the College evaluate its procedures and policies around reporting to the COD to ensure that student information is reported timely.
Views of responsible officials:
There is no disagreement with the finding.