Finding Text
2024-009 — Return of Title IV Funds (Special Test #5)– Material Weakness in Internal Control Over Compliance and Noncompliance
Federal program information:
Funding agencies: U.S. Department of Education
Titles: SFA Cluster-Federal PELL Grant Program
ALN Number: 84.063
Award years: Various
Criteria: According to 34 CFR Section 668.22(a)(1) through (a)(5), when a recipient of Title IV grant (PELL grants) withdraws from an institution during a payment period or period of enrollment in with the recipient began attendance, the institution must determine the amount of aid earned by the student as of the student’s withdrawal date. If the total amount of assistance earned by the student is less than the amount disbursed to the student, the difference must be returned to the Title IV program as outlined in the requirements.
Condition: The College uses credit hours for measurement of the program as such, the amount of aid earned by the student is required to be determined by dividing the total number of calendar days in the enrollment period into the number of days completed in that period as of the student’s withdrawal date. The College was determining the amount of funds earned by the amount of credit hours the student was still enrolled in. Additionally, the timing of the withdrawals was incorrect in the calculations.
Cause: The College was unaware of the percentage earned calculation and forms were not being submitted timely to the financial aid office to indicate student attendance.
Effect: Return of funds were incorrectly calculated resulting in over and underpayments to students.
Questioned Costs: $40,368
Context: The College did not properly calculate and return Title IV funds for students who withdrew.
Recommendation: The College should comply with grant requirements for calculation of determining funds earned and those that need to be returned.
Management’s Response: The College will return unearned Pell grant funds and properly determine unearned scholarship awards.