Finding Text
Federal Program: Student Financial Assistance Cluster, Federal Direct Loan Program Federal Agency: U.S. Department of Education Pass-Through Entity: Not applicable Assistance Listing Number: 84.268 Federal Award Year: June 30, 2022 Criteria: Title IV regulations require institutions to refund any unearned portions of grants and loans to the Title IV program within 45 days after a student withdraws Condition: Federal aid refunds were not calculated correctly for one student out of three tested and resulted in the Organization not refunding correct amounts. This was not a statistically valid sample. Cause: The Organization did not perform return of Title IV refund calculations during the year. Effect: The Organization did not refund $4,547 of Federal Direct Loans that was not earned for the student. Questioned Costs: Questioned costs of $4,547 were noted during testing. The full population of withdraws was tested. Context: Error was noted for one student out of three selected for testing. There was a total population of three students who withdrew during the fiscal year under audit that received Title IV aid. The sample was not statistically valid. Recommendation: The Organization should immediately perform a return of Title IV calculation for the student and remit a refund to the Title IV program. The Organization's personnel should implement a procedure to ensure a return of Title IV refund calculation for all students who withdraw on or before a defined point in any semester. This point should be after the 60.0 percent completion mark for fully earning Title IV funds, to ensure that these calculations capture any Title IV funds that need to be refunded. Views of Responsible Official(s): Management agrees with this finding and has recognized their need for a qualified individual who is knowledgeable about financial aid requirements. The Organization has hired a new Director of Financial Aid and Student Housing who started July 1, 2022. This individual will verify the calculation and return the funds to the Title IV program. A different individual who is knowledgeable about withdrawals will monitor to ensure any required refund is made.