Finding 498230 (2024-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2024-09-25
Audit: 320975
Organization: Denmark Technical College (SC)

AI Summary

  • Core Issue: The College did not return Title IV funds for one student within the required 45 days after withdrawal.
  • Impacted Requirements: Compliance with Title 2 CFR Part 200 mandates timely return of federal funds to avoid misappropriation.
  • Recommended Follow-Up: Update policies and procedures to ensure timely reviews and returns of Title IV funds; management is already working on this.

Finding Text

Return of Title IV Funds Criteria: Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) require that, when there are Title IV funds to be returned, that they be deposited or transferred into the student financial aid account or an electronic funds transfer initiated to the Department of Education as soon as possible, but no later than 45 days after the institution determines that a student withdrew. Condition: There was one student where the College failed to initiate the electronic funds transfer to the Department of Education within the 45-day timeframe. Context: We addressed this matter with College management who are aware of the requirements of review of all student withdrawals to determine Title IV refunds and timely return of funds. Effect: Failure to properly review and adhere to policies and procedures can lead to noncompliance and the misappropriation of federal funds that are not detected during the normal course of business. Cause: The lack of compliance is due to the College failing to review student withdrawals in a timely manner. Recommendation: We recommend the College review and update its policies and procedures to ensure all Title IV funds are returned in a timely manner. View of Responsible Officials and Planned Corrective Action: We concur with the finding. The College is in the process of implementing controls and procedures to ensure that all Title IV funds are properly monitored and reviewed.

Categories

Student Financial Aid Allowable Costs / Cost Principles

Other Findings in this Audit

  • 498228 2024-001
    Material Weakness Repeat
  • 498229 2024-001
    Material Weakness Repeat
  • 498231 2024-001
    Material Weakness Repeat
  • 498232 2024-001
    Material Weakness Repeat
  • 498233 2024-002
    Material Weakness
  • 498234 2024-002
    Material Weakness
  • 498235 2024-002
    Material Weakness
  • 498236 2024-002
    Material Weakness
  • 498237 2024-002
    Material Weakness
  • 1074670 2024-001
    Material Weakness Repeat
  • 1074671 2024-001
    Material Weakness Repeat
  • 1074672 2024-001
    Material Weakness Repeat
  • 1074673 2024-001
    Material Weakness Repeat
  • 1074674 2024-001
    Material Weakness Repeat
  • 1074675 2024-002
    Material Weakness
  • 1074676 2024-002
    Material Weakness
  • 1074677 2024-002
    Material Weakness
  • 1074678 2024-002
    Material Weakness
  • 1074679 2024-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $2.12M
84.268 Federal Direct Student Loans $1.65M
84.031 Higher Education_institutional Aid $361,399
84.033 Federal Work-Study Program $207,292
10.766 Community Facilities Loans and Grants $142,033
84.007 Federal Supplemental Educational Opportunity Grants $124,179
84.425 Education Stabilization Fund $121,060
81.123 National Nuclear Security Administration (nnsa) Minority Serving Institutions (msi) Program $65,081
14.218 Community Development Block Grants/entitlement Grants $54,400
84.048 Career and Technical Education -- Basic Grants to States $39,912
17.285 Apprenticeship USA Grants $19,495
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $17,179