Finding Text
Finding number: 2023-009
Federal agency: U.S. Department of Education
Programs: Student Financial Assistance Cluster
Assistance listing #: 84.063
Award year: 2023
Compliance requirement: Special Tests
Criteria
According to 34 CFR 668.22(f)(2):
(i) The total number of calendar days in a payment period or period of enrollment includes all days within the period that the student was scheduled to complete, except that scheduled breaks of at least five consecutive days are excluded from the total number of calendar days in a payment period or period of enrollment and the number of calendar days completed in that period.
(ii) The total number of calendar days in a payment period or period of enrollment does not include -
(A) Days in which the student was on an approved leave of absence; or
(B) For a payment period or period of enrollment in which any courses in the program are offered in modules, any scheduled breaks of at least five consecutive days when the student is not scheduled to attend a module or other course offered during that period of time.
Condition
The Federal Government requires that when the student withdraws from all classes, the College calculate the student’s percentage of Title IV aid earned. This is calculated by dividing the number of days the student attended classes by the total number of days in the academic period. The total number of days in the academic period (semester) includes all calendar days between the start and end of academic activities. During our testing, we noted 1 student, out of a sample of 3, where the incorrect number of total days in the Spring semester were used to calculate the student’s percentage of Title IV earned. Our sample was not, and was not intended to be, statistically valid.
Cause
The College has policies and procedures to ensure compliance for calculating the Title IV funds to be returned. In this instance, the College incorrectly calculated the enrollment period as student’s last day of attendance was excluded form calculation, which resulted in rounding variance.
Effect
The College calculated the Return to Title IV (“R2T4”) forms incorrectly and returned an insufficient amount of Title IV funds to the Department of Education.
Questioned Costs
$33.25
Identification as a Repeat Finding, if applicable
Not applicable.
Recommendation
The College should review their current policies and procedures regarding formal review process of the Return of Title IV calculations by an individual separate from preparer of Return of Title IV calculation to ensure that return of Title IV funds is properly calculated.
View of Responsible Officials
The College agrees with the finding.