Finding Text
Condition: For one student out of four tested, there was no refund calculated which resulted in an underpayment to the student of Federal Funds earned by the student of $711. Criteria: 34 CFR 668.22 requires that 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 in accordance with Federal regulations and return the unearned portion of the grant or loan funds to the Title IV programs as soon as possible but no later than 45 days after the withdrawal date. Cause: The financial aid administrator was not notified that the student withdrew from the College. Effect: Earned and unearned portions of the federal award were not properly disbursed or returned. Questioned costs: The total net amount of Federal awards to students tested was $24,871 which resulted in a $3,248 error. The total amount of Federal awards disbursed to students for which an R2T4 was required to be completed was $85,860 resulting in a questioned cost of $11,213. Views of Responsible Officials and Planned Corrective Actions: The College should implement stronger controls to ensure communication to the financial aid administrator is made so that return of Title IV funding calculations are computed. Management’s response: The College agrees with this finding.