Finding Text
Finding Number: 2022-001 Prior Year Finding: 2021-002 Federal Agency: U.S. Department of Education Federal Program: Student Financial Assistance Cluster Assistance Listing: 84.007, 84.003, 84.063, 84.268 Award Period: July 1, 2021 to June 30, 2022 Compliance Requirement: Special Tests and Provisions: Return to Title IV (R2T4) Type of Finding Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or Specific Requirement: Compliance ? The Code of Federal Regulations, 34 CFR 668.22(j) states that an institution must return the amount of Title IV funds for which it is responsible no later than 45 days after the date of the institution's determination that the student withdrew. Control ? Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with the guidance in "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control-Integrated Framework," issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition/Context: For one of sixty students selected for testing, the Pell refund amount was incorrectly returned to the federal program. The student withdrew on 10/14/2021 and the College correctly calculated the Pell refund amount of $665; however, the amount returned to the federal program was $902. Questioned Costs: Undetermined Cause: Staff error in adjusting the student account for the amount to be returned. Controls did not detect the error. Effect: The student?s return of funds was not returned to the program for the correct amount. Recommendation: We recommend that the College review its R2T4 policies and procedures to ensure accurate refund amounts are returned to program. Views of Responsible Officials: In April of 2022, after the Single Audit for 2021 was completed, the Financial Aid Director implemented a 100% secondary review of all R2T4 calculations. On September 6, 2022, during this secondary review the return of funds error was identified and returned on that day. The amount that was returned has been adjusted to reflect the correct amount that should have been returned. This was all adjusted, before the close-out and reconciliation of the 2021-2022 aid year.