Finding 60060 (2022-001)

Material Weakness
Requirement
N
Questioned Costs
$1
Year
2022
Accepted
2022-10-19
Audit: 55892
Organization: Toccoa Falls College, Inc. (GA)
Auditor: Capincrouse LLP

AI Summary

  • Core Issue: The College failed to return unearned Title IV funds on time for students who withdrew, leading to errors in fund calculations.
  • Impacted Requirements: Non-compliance with 34 CFR 668.22 regarding timely and accurate returns of Title IV funds.
  • Recommended Follow-Up: Enhance collaboration between the financial aid and registrar offices to ensure timely R2T4 processing and implement a review system for calculations.

Finding Text

Untimely and Inaccurate Returns of Title IV Funds (R2T4) Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2021-22 Financial Aid Year Condition: When students withdrew either officially or unofficially, the College did not always return unearned Title IV aid timely due to late dates of determination. There were two incorrect calculations of returned funds for students that withdrew during the term. There was one inaccurate return of funds even though the calculation on the R2T4 was correct. Criteria: 34 CFR 668.22 Questioned Costs: $344 Context: Out of 16 students tested, 3 students who unofficially withdrew during the fall 2021 term had a total of $775 in Pell funds and $3,987 in FDL funds returned late, ranging from 18 to 39 days. Two students had an R2T4 calculation error and 1 student had an incorrect amount of funds returned, netting to $344 total funds incorrectly not returned. Cause: Due to turn over in staffing and lack of communication between the registrar and financial aid office, the College did not maintain compliance for R2T4s. Effect: Return of Title IV funds were not performed timely and incorrect amount of unearned Title IV funds returned. Identification as repeat finding, if applicable: N/A Recommendation: We recommend that the financial aid office work closely with the registrar office to ensure that R2T4s are completed timely when students cease attendance during the term and that an individual knowledgeable in R2T4 review calculations before returns are made. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Corrective Action Plan

Finding Number: 2022-1 Untimely and Inaccurate Returns of Title IV Funds (R2T4) Planned Corrective Action: Timeliness: Upon the completion of the Fall 2021 term, the Director of Financial Aid became aware of a deficiency regarding the tracking of attendance for students enrolled in online courses due to the higher than usual number of students will All F grades due to non-attendance. Prior to the start of the Spring 2022 semester, the Director of Financial Aid, Registrar, and Dean of Distance Education met to discuss the issue and developed a plan to require all professors of online courses to report the names of students who were not submitting assignments in their courses. The Dean of Distance Education sends multiple email reminders to professors throughout the term, and members of the Distance Education Office perform periodic spot-checks of course data to ensure that professors are performing required duties. Accuracy: All financial aid staff are encouraged to participate in as many R2T4 training events as possible but are required to participate in at least three training events (one led by NASFAA, one led by ED, and one internal training event). Additionally, performing R2T4s will become the responsibility of the entire team beginning with the Fall 2022 semester. With more staff members calculating and reviewing the data, it is believed that the potential for human error will decrease. Person Responsible for Corrective Action Plan: Timeliness: Donovan Smith (Director of Financial Aid) Accuracy: Donovan Smith (Director of Financial Aid) Anticipated Date of Completion: Timeliness: Implemented prior to Spring 2022 semester and resulted in no findings of this nature for Spring 2022 Accuracy: Implemented beginning with the Fall 2022 semester and will be completed by the end of the Spring 2023 semester

Categories

Questioned Costs Student Financial Aid Material Weakness Reporting

Other Findings in this Audit

  • 60061 2022-002
    - Repeat
  • 60062 2022-001
    Material Weakness
  • 60063 2022-002
    - Repeat
  • 636502 2022-001
    Material Weakness
  • 636503 2022-002
    - Repeat
  • 636504 2022-001
    Material Weakness
  • 636505 2022-002
    - Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $4.21M
84.063 Federal Pell Grant Program $1.93M
84.425 Covid-19 Education Stabilization Fund Heerf - Institutional Portion $1.56M
84.425 Covid-19 Education Stabilization Fund Heerf - Student Aid Portion $480,809
84.033 Federal Work-Study Program $201,245
84.007 Federal Supplemental Educational Opportunity Grants $93,368
84.425 Covid-19 Education Stabilization Fund Heerf - Strengthening Institutions $41