Finding Text
Federal Agency: US Department of Education
Federal Program Name: Student Financial Assistance Cluster
Assistance Listing Number: 84.063, 84.007, & 84.033
Federal Award Identification Number and Year: P063P231353-2024, P063Q231353-2024,
P033A231190-2024, & P007A231190-2024
Award Period: July 1, 2023 to June 30, 2024
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria or specific requirement: When calculating return to title IV (R2T4), percent completed is calculated by dividing total number of calendar days by amount attended, per 34 CFR 668.22(f)(2)(i), the total number of calendar days in a payment period or period of enrollment includes all days within the period that the student was scheduled to complete, except that scheduled breaks of at least five consecutive days are excluded from the total number of calendar days in a payment period or period of enrollment and the number of calendar days completed in that period. Per 2 CFR 200.303, nonfederal entities receiving federal awards are required to establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements.
Condition: The College incorrectly calculated Return to Title IV (R2T4) calculations.
Questioned costs: None
Context: During our testing of 10 R2T4 calculations, we identified that 8 had mechanically incorrect calculation by using the incorrect number of scheduled break days.
Cause: The College was using the incorrect number of scheduled break days for Fall Semester.
Effect: The College could return incorrect amounts based off of their calculations, which could effect
student repayment amounts based off of amount earned.
Repeat Finding: Yes (2023-001)
Recommendation: We recommend that the College review policies and procedures related to R2T4
calculations to ensure calculations are performed correctly.
Views of responsible officials: Management agrees with the finding and has developed a plan to correct the finding.