FAC Explorer

Finding 514615 (2024-001)

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Requirement
N
Questioned Costs
-
Year
2024
Accepted
2024-12-17
Audit: 332960
Organization: Kankakee Community College District 520 (IL)
Auditor: Sikich CPA LLC

AI Summary

  • Core Issue: The College failed to return Title IV Financial Aid for two students within the required 45 days after their withdrawal.
  • Impacted Requirements: This noncompliance violates 34 CFR 668.22 regarding timely calculations and returns of Title IV funds.
  • Recommended Follow-Up: Assign specific responsibilities to ensure timely calculations and returns of Title IV funds for all students.

Finding Text

2024-001: Late Return of Title IV Financial Aid - Student Financial Aid Cluster – Assistance Listing #s 84.007, 84.033, 84.063, 84.268 - Grant Period - Year Ended June 30, 2024 Criteria: According to 34 CFR 668.22 when a recipient of Title IV grant or loan assistance withdraws from a College during a payment period or period of enrollment in which the recipient began attendance, the College must determine the amount of Title IV grant or loan assistance that the student earned as of the student's withdrawal date. Condition: During our Return of Title IV Fund testing, we noted that the College did not calculate or return Title IV Student Financial Aid for two out of twenty-five students tested until after 45 days when the student ceased attendance. We consider the untimely calculation and Return of Title IV Student Financial Aid to be an instance of noncompliance relating to the Special Tests and Provisions Compliance Requirement. Statistical sampling was not used when making sample selections. Questioned Costs: $0 Effect: The College did not calculate or return unearned Title IV Financial Aid to the U.S. Department of Education within 45 days of when the student was determined to cease their attendance at the College. Cause: The College’s internal controls did not identify the fact that a corrected return of Title IV amount occurred for two students within the required 45 days. Recommendation: We recommend the College assign specific responsibilities to review students return of Title IV calculation to verify the correct amount is calculated and returned in a timely manner. Views of Responsible Officials: Management agrees with this finding and response is included in Corrective Action Plan.

Corrective Action Plan

2024-001: Late Return of Title IV Financial Aid - Student Financial Aid Cluster – Assistance Listing #s 84.007, 84.033, 84.063, 84.268 - Grant Period - Year Ended June 30, 2024 Condition: During our Return of Title IV Fund testing, we noted that the College did not calculate or return Title IV Student Financial Aid for two out of twenty-five students tested until after 45 days when the student ceased attendance. We consider the untimely calculation and Return of Title IV Student Financial Aid to be an instance of noncompliance relating to the Special Tests and Provisions Compliance Requirement. Corrective Action Plan: The KCC Office of Financial Aid has reviewed and updated the Return of Title IV process to ensure compliance standards are consistently met. A weekly report has been set up to detect unprocessed R2T4 awards and transmittal will occur on a weekly basis to support the timely return of Title IV funds. Responsible Person for Corrective Action Plan: Kendra Souligne, Director of Financial Aid & Student Engagement Implementation Date of Corrective Action Plan: June 12, 2024

Categories

Special Tests & Provisions Student Financial Aid Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $4.08M
93.575 Child Care and Development Block Grant $772,271
84.268 Federal Direct Student Loans $655,716
17.258 Wioa Adult Program $633,357
84.047 Trio Upward Bound $399,039
84.044 Trio Talent Search $390,893
84.042 Trio Student Support Services $328,480
17.259 Wioa Youth Activities $297,544
84.048 Career and Technical Education -- Basic Grants to States $251,235
17.278 Wioa Dislocated Worker Formula Grants $228,281
84.002 Adult Education - Basic Grants to States $160,921
84.033 Federal Work-Study Program $104,106
84.007 Federal Supplemental Educational Opportunity Grants $56,085
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds $24,127
20.205 Highway Planning and Construction $23,729
17.245 Trade Adjustment Assistance $15,423