Finding Text
2024-002 – Return of Title IV Calculation. Finding Type. Immaterial Noncompliance/Significant Deficiency in Internal Control over Compliance (Special Tests & Provisions). Program. Student Financial Assistance Cluster; U.S. Department of Education; Assistance Listing Numbers 84.007, 84.033, 84.063, and 84.268; Award Numbers P007A232007, P033A232007, and P063P231632, and P268K241632. Criteria. The total number of calendar days in an enrollment period includes all days within the period, excluding scheduled breaks of at least five consecutive days, as specified by the 34 CFR 668.22(f) Compliance Supplement. Condition. A break of at least five consecutive days was not excluded from the reported enrollment period for the Winter 2024 semester, which resulted in the calculation being incorrect for all students who had returns in the Winter 2024 semester. Cause. The College does not have policies and procedures in place to ensure calculations are properly performed. Effect. As a result of this condition, Return of Title IV ("R2T4") calculations were incorrect for five students for the Winter 2024 semester, resulting in $2,413 in excess funds returned to the U.S. Department of Education. It is our understanding that on August 14, 2024, the College repaid the five students affected by this calculation error. Questioned Costs. These errors resulted in excess refunds to the Department of Education totaling an amount less than $25,000. Recommendation. We recommend that the College implement a review process to ensure the number of enrollment days used in the Return of Title IV calculations is accurate and that the R2T4 calculation is being reviewed by a second individual. View of Responsible Officials. Management agrees with this finding and has prepared a Corrective Action Plan.