Finding Text
2024-008: Return of Title IV Funds
Significant Deficiency / Other Matter Noncompliance
Federal Program: Student Financial Assistance Cluster
Assistance Listing Number(s):
Student Financial Assistance Cluster
• 84.007
• 84.033
• 84.038
• 84.063
• 84.268
• 84.379
• 93.925
Criteria: When a student withdraws, institutions must comply with the "Return of Title IV Funds" requirements outlined in 34 CFR 668.22, ensuring any unearned funds are returned to the Department of Education within 45 days of determining the student's withdrawal.
Condition: We identified instances of unearned funds not returned to the Department of Education within the 45-day requirement.
Cause: Lack of control in place over returns of Title IV funding
Effect or Potential Effect: Returns of Title IV Funds may not be refunded within the 45-day requirement and result in instances of noncompliance with the Department of Education.
Questioned Costs: $9,259
Context: During our sample of 12 students who withdrew during the fiscal year ended June 30, 2024, we identified 3 students whose date withdrawn from the College resulted in unearned funds required to be returned to the Department of Education. The return of funds calculation was not completed for these students, resulting in unearned funds not returned within the 45-day requirement.
Repeat Finding: No
Recommendation: We recommend the College review its process and controls in place for calculating refunds from Title IV and include an independent review and sufficient documentation to support the application of the control.
Views of Responsible Officials: Management agrees with the finding. See corrective action plan.