Finding 516145 (2024-002)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2024-12-19
Audit: 333977
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: Norco College inaccurately calculated Return to Title IV for two students and failed to notify one eligible student about their post-withdrawal disbursement.
  • Impacted Requirements: Compliance with OMB guidelines on calculating Title IV assistance and timely disbursement of post-withdrawal funds.
  • Recommended Follow-up: Improve internal controls to ensure accurate calculations and adherence to compliance procedures for Title IV disbursements.

Finding Text

Criteria or Specific Requirements OMB Compliance Supplement, 34 CFR section 668.22(e)(f): The amount of Title IV assistance earned by the student is calculated by dividing the number of days completed by the student within the period of enrollment by the total number of days in the enrollment period. The enrollment period includes all days within the period that the student was scheduled to complete, except that scheduled breaks of at least five consecutive days are excluded from the total number of calendar days in the period of enrollment and the number of calendar days completed in that period. OMB Compliance Supplement, 34 CFR section 668.22(a)(6)(ii)(B)(1): The institution must disburse directly to a student any amount of a post-withdrawal disbursement of grant funds that is not credited to the student's account. The institution must make the disbursement as soon as possible, but no later than 45 days after the date of the institution's determination that the student withdrew. Condition Significant Deficiency in Internal Control over Compliance – We noted the following instances of noncompliance for Norco College: 1. Two of the twenty-three Return to Title IV calculations tested were not calculated accurately. The College utilized the incorrect figures in the calculation. 2. One of the twenty-three students tested for Return to Title IV were eligible for a post-withdrawal disbursement; however the College did not provide the student with notification of their eligible disbursement, nor did they disburse the funds to the student. Questioned Costs There are no questioned costs associated with this finding. Context There were 115 Return to Title IV calculations completed for Norco College during the year ended June 30, 2024. Effect Without proper review of Return to Title IV calculations, the College is at risk of noncompliance with the above referenced criteria. Cause The College’s policies and procedures were not properly adhered to. Repeat Finding (Yes or No) No. Recommendation The College should strengthen internal controls over the review of the Return to Title IV calculations to ensure that the data utilized in preparing the calculation is accurate and that the College’s procedures are in line with compliance requirements of the program.

Corrective Action Plan

Views of Responsible Officials and Corrective Action Plan The College, with support from the District, will implement an annual review of compliance requirements and training for all staff associated with Return to Title IV calculation requirements to ensure that the data utilized in preparing the calculation is accurate and that the College’s procedures are in line with compliance requirements of the program. Norco College Student Financial Services reviewed the workflow of Return to Title IV to enhance implementational procedures and regulatory compliance of this process. This will ensure that student withdrawal calculations are performed accurately and occur in a timely manner based on the District’s schedule of specific dates for each term of when calculations are completed. The purpose of these efforts is to meet compliance requirements as they are related to Return to Title IV. There was also staff turnover during the 2023-24 award year resulting in inconsistent procedures causing the two incorrect calculations and the lack of notification to the student of their eligible post withdrawal disbursement. An Assistant Director position was approved and filled as of May 2024. The Assistant Director takes an active role to ensure federal guidelines are adhered to, completes thorough training on a regular basis, and all calculations are reviewed for accuracy.

Categories

Student Financial Aid Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 516138 2024-001
    Significant Deficiency
  • 516139 2024-001
    Significant Deficiency
  • 516140 2024-001
    Significant Deficiency
  • 516141 2024-001
    Significant Deficiency
  • 516142 2024-001
    Significant Deficiency
  • 516143 2024-001
    Significant Deficiency
  • 516144 2024-001
    Significant Deficiency
  • 516146 2024-002
    Significant Deficiency
  • 516147 2024-002
    Significant Deficiency
  • 516148 2024-002
    Significant Deficiency
  • 516149 2024-002
    Significant Deficiency
  • 516150 2024-002
    Significant Deficiency
  • 516151 2024-002
    Significant Deficiency
  • 1092580 2024-001
    Significant Deficiency
  • 1092581 2024-001
    Significant Deficiency
  • 1092582 2024-001
    Significant Deficiency
  • 1092583 2024-001
    Significant Deficiency
  • 1092584 2024-001
    Significant Deficiency
  • 1092585 2024-001
    Significant Deficiency
  • 1092586 2024-001
    Significant Deficiency
  • 1092587 2024-002
    Significant Deficiency
  • 1092588 2024-002
    Significant Deficiency
  • 1092589 2024-002
    Significant Deficiency
  • 1092590 2024-002
    Significant Deficiency
  • 1092591 2024-002
    Significant Deficiency
  • 1092592 2024-002
    Significant Deficiency
  • 1092593 2024-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $2.60M
84.042 Trio Student Support Services $1.61M
21.027 Coronavirus State and Local Fiscal Recovery Funds $902,456
84.425 Education Stabilization Fund $828,287
84.116 Fund for the Improvement of Postsecondary Education $773,151
17.285 Registered Apprenticeship $739,355
12.002 Procurement Technical Assistance for Business Firms $476,378
17.268 H-1b Job Training Grants $421,431
84.044 Trio Talent Search $304,005
84.048 Career and Technical Education -- Basic Grants to States $250,908
12.905 Cybersecurity Core Curriculum $217,744
93.558 Temporary Assistance for Needy Families $195,089
84.335 Child Care Access Means Parents in School $130,338
84.047 Trio Upward Bound $106,666
84.007 Federal Supplemental Educational Opportunity Grants $84,874
47.070 Computer and Information Science and Engineering $81,135
84.002 Adult Education - Basic Grants to States $79,162
84.063 Federal Pell Grant Program $75,780
84.033 Federal Work-Study Program $72,872
84.031 Higher Education Institutional Aid $45,319
93.859 Biomedical Research and Research Training $44,424
10.223 Hispanic Serving Institutions Education Grants $39,162
93.658 Foster Care Title IV-E $29,230
19.009 Academic Exchange Programs - Undergraduate Programs $25,916
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $19,895
43.008 Office of Stem Engagement (ostem) $9,557
84.120 Minority Science and Engineering Improvement $8,071
64.117 Survivors and Dependents Educational Assistance $7,789
16.525 Grants to Reduce Domestic Violence, Dating Violence, Sexual Assault, and Stalking on Campus $4,500
16.607 Bulletproof Vest Partnership Program $1,945
47.076 Stem Education (formerly Education and Human Resources) $1,881