Finding 547884 (2024-007)

Significant Deficiency
Requirement
N
Questioned Costs
$1
Year
2024
Accepted
2025-03-31

AI Summary

  • Core Issue: The College failed to calculate Title IV funds for 1 out of 3 students who withdrew without notification, representing a significant compliance deficiency.
  • Impacted Requirements: This finding violates 34 CFR 668.22 (j) (2), which mandates timely withdrawal date determination for students who do not formally notify the institution.
  • Recommended Follow-Up: Complete the Title IV refund calculation for the affected student and enhance monitoring controls for attendance tracking.

Finding Text

Criteria: 34 CFR 668.22 (j) (2) states “For an institution that is not required to take attendance, an institution must determine the withdrawal date for a student who withdraws without providing notification to the institution no later than 30 days after the end of the earlier of the - (i) Payment period or period of enrollment, as appropriate, in accordance with paragraph (e) (5) of this section; (ii) academic year in which the student withdrew; or (iii) Educational program from which the student withdrew.” Condition: The College did not complete Title IV funds calculations for no passing grade withdrawal students for 1 out of 3 students tested (33.3%). We consider this condition to be a significant deficiency to the Special Tests and Provisions compliance requirement and is not a repeated finding. Statistical sampling was not used in making sample selections. Questioned Costs: $4,126 Cause and Effect: The College did not timely complete Return of Title IV calculations for an unofficial withdrawal. The result is Title IV funds that were not returned to the Department of Education. Recommendation: We recommend the College complete a Return to Title IV refund calculation for the one student in question and increase controls over monitoring attendance. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.

Corrective Action Plan

Identification and Review • Conduct an internal audit to identify all students who failed all courses and determine the last date of attendance for each. • Review institutional records (For example, faculty attendance records, Learning Management or participation records) to establish when students stopped engaging academically • Verify whether R2T4 calculations should have been performed Corrective Actions • Process R2T4 calculations for affected students based on their last date of attendance • Return any unearned Title IV funds • Update students file to reflect accurate withdrawal dates and notify them of any financial obligations resulting from the adjustment • If students are still enrolled in future terms, ensure they understand satisfactory academic progress (SAP) implications Process and Policy Improvements • Implement an early alert system to identify students who cease attendance before the end of the term. • Strengthen collaboration between academic departments, the registrar, and the financial aid office to improve withdrawal tracking • Run monthly withdrawal reports to see when students earn all failing grades. Monitoring and Compliance • Conduct regular audits to ensure compliance with R2T4 regulations and timely student withdrawals • Provide staff training on withdrawal procedures and the importance of accurately tracking last dates of attendance. • Establish a set time to review withdrawal policies and ensure adherence to federal regulations. Reporting and Documentation • Maintain detailed records of all identified cases, R2T4 calculations, and funds returned. • Document all policy and procedural updates made to prevent recurrence. • If required, submit a report to the U.S. Department of Education outlining corrective actions taken. Responsible Person for Correction Action Plan: Alexis Brown, Director of Financial Aid Implementation Date for Corrective Action Plan: 2/25/25

Categories

Questioned Costs Special Tests & Provisions Student Financial Aid Subrecipient Monitoring Reporting Significant Deficiency

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $2.27M
84.063 Federal Pell Grant Program $1.15M
84.033 Federal Work-Study Program $973,426
84.038 Federal Perkins Loan Program $75,937
84.007 Federal Supplemental Educational Opportunity Grants $51,433