Finding 398971 (2023-002)

Finding: Item 2023-002 – Special Tests: Title IV Assistance Earned Federal Program – Federal Pell Grant Federal ALN – 84.063 Federal Award Number – P063P188097 Federal Award Year – September 30, 2023 Federal Agency – U.S. Department of Education Pass-through Entity – Not Applicable Significant Deficiency Criteria: Calculation of the amount of Title IV Assistance earned is required by Title 34 in which the percentage of earned Title IV funds must be calculated by determining the percentage of the Title IV grant that has been earned by the student and applying that percentage to the total amount of Title IV grant that was or could have been disbursed to the student for the payment period or periods as of withdrawal date. Institutions are responsible for accurately calculating this amount and processing the return timely, if any. Condition / context: Out of a sample of four students who withdrew during the audit period, the Title IV worksheet was not completed correctly for two students that required a return of funds. Additionally, there was a delay in return of Title IV funds for both students that exceeded the maximum time allowed of 45 days after the date the institution determined that the student withdrew. The sample was not a statistically valid sample but was determined using Chapter 11 – Audit Sampling Considerations of Uniform Guidance Compliance Audits of the Audit and Accounting Guide for Government Auditing Standards and Single Audits. Cause: Procedures were not in place to verify that the Title IV worksheet was completed accurately and returns were processed timely. Repeat finding: Finding is a repeat of finding 2022-002 in the immediately prior audit. Effect: Inaccurate calculation of the Title IV funds to be returned to a student can impact the student's financial wellbeing, ability to make timely financial and strategic decisions, and ability to enroll in the Title IV program in future periods. Recommendation: We recommend that the Financial Aid Coordinator institute a procedure that would ensure that the Title IV worksheet is completed accurately and correctly to ensure that amounts earned by students who withdraw from the College are calculated correctly to ensure timely processing of returns, if any. View of responsible officials: Management's response is reported in "Management's Views and Corrective Action Plan" at the end of this report.