Finding Text
2024-002 Special Tests and Provisions – Return of Title IV Funds – Significant Deficiency
Federal Assistance Listing Numbers: 84.063, 84.007, 84.268, and 84.033
Name of Program or Cluster: Student Financial Assistance Cluster
Agency: U.S. Department of Education
Criteria: The College is required to accurately calculate return of Title IV funds for withdrawn students who began attendance, allocate the return of Title IV funds as required, notify borrowers of returned loans and/or follow the requirements for post-withdrawal disbursements as applicable. Additionally, where applicable, the College is required to return funds within forty-five days of becoming aware that the student had withdrawn, deposits or transfers were made into the federal funds account, electronic transfers were initiated, or checks were issued.
Condition: The College did not accurately calculate a return of Title IV funds and/or follow the requirements for post-withdrawal disbursements for seven out of twenty-four students sampled from a total population of withdrawn students who began attendance. Additionally, for one out of the twenty-four students sampled, the College did not return Title IV funds timely.
Cause: Management oversight.
Effect: Noncompliance with OMB federal grant compliance requirements.
Questioned Costs: None.
Repeat Finding: No.
Recommendation: The College should properly follow its policies and procedures over return of Title IV funds to ensure that all R2T4 calculations are completed accurately and timely and all requirements for post-withdrawal disbursements are followed where applicable.
Views of Responsible Officials: See Corrective Action Plan attached.