Finding Text
Cluster name: Student Financial Assistance Cluster Assistance Listings numbers and names: 84.007 Federal Supplemental Educational Opportunity Grants 84.033 Federal Work-Study Program 84.063 Federal Pell Grant Program 84.268 Federal Direct Student Loans Award numbers and year: P007A210134, P033A210134, P063P212910, and P268K222910 July 1, 2021 through June 30, 2022 Federal agency: U.S. Department of Education Compliance requirement: Special tests and provisions Questioned costs: $275 Condition?Contrary to federal regulations and District policies and procedures, the District did not correctly calculate $275 of returns of student financial assistance monies it reported in the federal agency?s Common Origination and Disbursement (COD) system. Specifically, for 1 of 40 students tested, the District used incorrect credit hours when calculating the refund amount it recorded in the COD, resulting in the student being owed a refund of $275. In addition, for 5 of 40 students tested, the District did not timely calculate, report, and return student financial assistance monies owed to the student or the federal government after the student?s withdrawal from classes. Effect?Because of the District?s inaccurate calculation in the COD system, a student was owed a refund of $275 from the District. Further, the District increases the risk that they may not collect monies from the student that are due back to the federal government or may not refund monies it owes to students by not calculating, reporting, and returning student financial assistance monies within the required time frame. Cause?In April 2022, the District implemented policies and procedures for the return of student financial assistance monies. However, those policies and procedures did not require an independent review of the calculations prior to their submission to the COD. Further, the District reported that it did not have sufficient staffing available to calculate, report, and process returns of student financial assistance monies within the required 45 days. Criteria?Federal regulations and District policies and procedures require the District to accurately calculate, report, and return federal student financial assistance to the federal grantor no later than 45 days after the date of the District?s determination that the student withdrew (34 Code of Federal Regulations [CFR] ??668.22 and 668.173). Also, federal regulation requires establishing and maintaining effective internal control over federal awards that provides reasonable assurance that federal programs are being managed in compliance with all applicable laws, regulations, and award terms (2 CFR ?200.303). Recommendations?The District should allocate staffing and improve its policies and procedures to: 1. Accurately calculate, report, and return student financial assistance monies to the federal government or the student within the required 45 days. 2. Require an independent review of the return of student financial assistance monies calculations prior to their submission to the COD. The District?s corrective action plan at the end of this report includes the views and planned corrective action of its responsible officials. We are not required to audit and have not audited these responses and planned corrective actions and therefore provide no assurances as to their accuracy. This finding is similar to prior-year finding 2021-102.