Finding Text
Federal Agency: U.S. Department of Education
Federal Program Name: Student Financial Assistance Cluster
Assistance Listing Number: 84.007 – Federal Supplemental Education Opportunity Grants
84.033 – Federal Work Study Program
84.063 – Federal Pell Grant Program
84.268 – Federal Direct Student Loans
Federal Award Identification Number and Year: N/A
Pass-Through Agency: N/A
Pass-Through Number(s): N/A
Award Period: July 1, 2023 to June 30, 2024
Type of Finding:
* Significant Deficiency in Internal Control over Compliance
* Other Matters
Criteria or Specific Requirement: The Code of Federal Regulations 34 CFR 668.22, states that when students withdraw from a school, institutions are required to determine earned and unearned portions of Title IV aid as of the date the student ceased attendance based on the amount of time the student spent in attendance. Up through the 60% point in each payment period or period of enrollment, a pro
rate schedule is used to determine the amount of Title IV funds the students earned at the time of withdrawal. After the 60% point in the payment period or period of enrollment, a student has earned 100% of the Title IV funds the student was scheduled to receive during the period.
Condition: During our testing it was noted that: 24 of 110 students tested resulted in a overpayment of $1,151 and underpayment of $3,124 of funds that should have been returned to the students based on individual students’ R2T4 calculation but was not. This lead to cumulative question costs of $1,973.
Questioned Costs: $1,151 overpayment; $3,124 underpayment
Context: The College incorrectly calculated the break days for all R2T4’s in the spring semester.
Cause: The College has had turnover and there was no oversight over the withdrawal process and calculation of R2T4.
Effect: There are questioned costs of $1,973.
Repeat Finding: No.
Auditors’ Recommendation We recommend that the College correct there mistake and review the amount of days scheduled in each break for next fiscal year.
Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with the audit finding.