Finding Text
Finding No. 2024-002 Identification of the Federal Program: Student Financial Aid Cluster, Assistance Listing #: 84.007, 84.033, 84.063, 84.268
Compliance Requirement: Special Test and Provisions – Return of Title IV Funds
Condition: Title IV funds were not returned within the allowable 45-day time frame.
Criteria: Returns of Title IV funds are required to be deposited or transferred into the Student Financial Aid account or electronic fund transfers initiated to the Department of Education as soon as possible, but no later than 45 days after the date the institution determines that the student withdrew.
Cause: The process in which the College identifies required return of funds did identify this return of funds calculation properly, however there was not procedure in place to track that funds were paid out in the appropriate time frame.
Context: The College transitioned to a new financial aid system during the fiscal year and did not have a process in place to track number of days remaining to return funds. As a result, the College returned funds after the 45-day allowable period for one sampled student.
Effect: The College did not return Title IV funds timely.
Recommendation: The College should develop a Title IV return monitoring system to ensure timely return of funds.
Management Response: The College concurs with this finding. Corrective Action Plan: See enclosed management's corrective action plan.