Finding Text
FINDING 2024-003 – CONTROLS AND NONCOMPLIANCE OVER SPECIAL TESTS AND PROVISIONS
– RETURN OF FUNDS
Federal Department: Department of Education
Assistance Listing Number(s): 84.063, 84.007, 84.033
Program Name(s): Student Financial Assistance Cluster
Questioned Costs: None
Criteria
Federal regulations dictate when a recipient of Title IV grant or loan assistance withdraws from an institution
during a payment period or period of enrollment in which the recipient began attendance, the institution
must determine the amount of Title IV aid earned by the student as of the student’s withdrawal date. If the
total amount of Title IV assistance earned by the student is less than the amount that was disbursed to the
student or on his or her behalf as of the date of the institution’s determination that the student withdrew, the
difference must be returned to the Title IV programs and no additional disbursements may be made to the
student for the payment period or period of enrollment, per the provisions 34 CFR 668.22(a)(1) through
(a)(5)).
Condition
During our compliance testing, we noted 4 out of the 8 students selected for testing had their total term
days incorrectly calculated by the College. Due to this, incorrect amounts were returned. See questioned
costs below. Additionally, 5 out of the 8 students tested did not receive their return of funds within 45 days,
with dates ranging from 4 months late to 14 months late.
Questioned Costs
$12,400 (Known questioned costs of $1,240; likely questioned costs $11,160).
Context
A sample of 8 students were selected for compliance testing. 5 students’ did not have their total term days
calculated correctly, which lead to the incorrect amount of funds required to be returned being determined.
Additionally, 4 of the 8 students sampled did not receive their funds returned within 45 days.
Effect
When the total term days are incorrectly calculated, there is a risk that the amount of funds required to be
returned is incorrectly calculated.
Cause
The cause appears to be an error in the processing of the information, due to turnover in the Student
Financial Aid department.
Identification as a Repeat Finding, if Applicable
This matter is not considered a repeat finding.
Recommendation
We are aware that the Student Financial Aid Department updates to its procedures term days calculations
and return of funds determination. We recommend that the College continue these efforts to ensure future
compliance with all applicable return of funds requirements.
Views of Responsible Officials and Planned Corrective Actions
See Corrective Action Plan.