FAC Explorer

Finding 512977 (2024-004)

-
Requirement
N
Questioned Costs
$1
Year
2024
Accepted
2024-12-04
Audit: 330798
Organization: Certell, INC (IN)
Auditor: Sikich CPA LLC

AI Summary

  • Core Issue: One refund of $2,071 was not paid within the required 45 days after a student withdrew.
  • Impacted Requirements: This finding violates the compliance requirement for the Return of Title IV Funds.
  • Recommended Follow-Up: The Institution should refund the $2,071 and improve controls for processing refunds.

Finding Text

FINDING 2024-004: UNPAID REFUND FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION PROGRAM NAME: FEDERAL PELL GRANT PROGRAM ALN: 84.063 FEDERAL AWARD YEAR: 2023-2024 Compliance Requirement: Special Tests and Provisions (N.) - Return of Title IV Funds Criteria: Refunds, if necessary, must be calculated and made within 45 calendar days of the date the student withdraws (34 CFR 668.22, 685.306). Condition: We tested eighteen drop students and noted one unpaid refund. We consider this finding to be an instance of non-compliance. Cause: The condition was caused by issues transferring to a new student information system. Effect: The result is the Institution is retaining monies which need to be returned to the Department of Education. Question Costs: $2,071 Statistical sampling was not used when making sample selections. Recommendation: We recommend the Institution refund the $2,071 to the Department of Education and increase controls over paying refunds. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.

Corrective Action Plan

Finding 2024-004: Unpaid Refund – It is recommended the Institution refund the $2,071 to the Department of Education and increase controls over paying refunds. Comments on Finding and Recommendation(s): HJC has refunded the funds to the Department of Education as recommended by the audit team. This was the first active quarter in the new SIS and there was an attendance processing error. The student only logged in one time but was not withdrawn. When found, the funds were returned to the Department of Education. Actions Taken or Planned: As soon as the issue was discovered, HJC began looking at options, and entered into an agreement with CourseKey for the accurate daily import of academic and attendance information into the Campus Cafe SIS system. Daily academic information exports to GF AS are being done to ensure they have the most accurate information available for processing Title IV aid.

Categories

Questioned Costs Student Financial Aid Special Tests & Provisions

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $1.52M
84.063 Federal Pell Grant Program $1.38M
84.007 Federal Supplemental Educational Opportunity Grants $43,187