Finding 537874 (2024-001)

Finding 2024-001 U.S. Department of Education Assistance Listing Numbers 84.063 Timely Return of Title IV Funds Condition- During the audit, it was identified that for two out of three students selected for testing did not have their funds returned to the federal government within the required timeframe. Criteria- Per federal regulations, institutions are required to return Title IV funds within 45 days of a student’s withdrawal. Cause- The delay in returning funds was caused by a lack of adequate resources in the Student Financial Aid Department, leading to insufficient capacity to process withdrawals and returns in a timely manner. Effect- The Colleges did not return Title IV Funds within the required timeframe which could impact the Colleges’ ability to drawdown Pell and Direct Loans. Recommendation- We recommend that the Colleges assess and address staffing levels in the Student Financial Aid Department to ensure adequate resources are available to process Title IV fund returns timely. Additionally, the Colleges should develop policies and procedures to ensure timely processing of returns within the required 45-day period. Management Response – Additional staffing has been put in place to ensure that we have enough resources to complete title IV refund processing in a timely fashion. A new assistant director (hired in November 2024) will be monitoring the notifications that students have withdrawn and notify the director when title IV refunds are required. The new assistant director is also currently being trained in title IV refund processing and has experience with title IV refunding prior to being hired. The associate director (hired in July 2024) is also an expert in the return of federal funding through EDCONNECT and perform a supportive role in this process.