Finding 501682 (2024-002)

Inaccurate and Untimely Return of Title IV Funds (R2T4) DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: When students withdrew from a term either officially or unofficially, the College did not always return unearned Title IV aid timely or accurately. Criteria: 34 CFR 668.22 Questioned Costs: $950 Context: Out of 4 students tested, 2 students in modular programs who withdrew during the audit period were not correctly assessed for an R2T4. Both students ceased attendance in the first module and should have had a return completed. These were corrected as part of the audit. 1 student required a return of $950 in federal direct loans. The other student was offered a post withdrawal disbursement of $165 in federal direct loans that they declined. The College had a total of 7 withdrawals for the year, and reviewed the remaining 3 noting these students either attended past the 60% mark or met a modular exemption. Cause: Modular exemptions were misapplied by the College. Effect: Returns of Title IV funds were not performed timely. Identification as repeat finding, if applicable: Not applicable Recommendation: We recommend a zero-credit report be run at the end of each module to ensure all unofficial withdrawals are followed up on so that R2T4s are completed timely when required. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.