Finding 393487 (2022-002)

Internal Controls and Compliance over Special Test Return of Title IV Funds Federal Program Information: Funding Agency: U.S. Department of Education Title: Federal Pell Grant Program AL number: 84.063 Award year and number: 2022 P063P154504 Criteria or Specfic Requirement: Internal controls over Return of Title IV Funds should be properly designed to provide assurance of meeting compliance requirements and should operate effectively. Procedures should be in place to ensure program supervisors or management approve the completed Treatment of Title IV Funds When A Student Withdraws from a Credit-Hour Program form (R2T4 calculation). Condition: We tested 4 students that withdrew. While there were not any specific issues of non-compliance noted, we could not test internal controls over compliance because there is no evidence retained that demonstrates the completed Return of Title IV Funds form was reviewed and approved. Context: We performed a walkthrough over the student withdrawal procedures and Return of Title IV Funds calculation. We inquired with financial aid staff and business office staff. We examined student withdrawal documents and student accounts. We selected four, out of a total population of 15, student files who received a Pell disbursement and subsequently withdrew. Sample selection was not a statistical valid sample because sampling risk was not quantified. Questioned Costs: None Effect: Without a control process documented, there is a chance the Return of Title IV Funds calculation be incorrect. Cause: The College does not have a documented control process in place for the completed R2T4 calculation. Auditor's Recommendation: We recommend the College implement documented control procedures to ensure the Return of Title IV Funds calculation is reviewed and approved. View of Responsible Officials: Management agrees with the audit finding and has a plan in place to correct the finding.