Finding Text
Criteria or specific requirement: Per the Uniform Guidance 2 CFR 200.303, non-federal 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. Effective internal controls should include a documented formal review to ensure the accuracy of all Return of Title IV (R2T4) calculations. The FSA Handbook provides guidance and a form on how the R2T4 calculation is to be calculated, applied to disbursements made, and timeline for returning any required return. Condition: There was an instance when the College did not correctly calculate the return of title IV funds (R2T4) and submit the payment timely. In addition, the College did not have observable controls to test over the return of title IV (R2T4) calculations. Questioned Costs: None Context: During our testing, we noted 1 of the 8 students tested for R2T4 was incorrectly calculated, incorrectly applied, and credited to the Department of Education more than 45 days after it was determined the student withdrew. We also noted that all 8 samples lacked documentation of review of Refund of Title IV aid calculation. Cause: The new software made it difficult to make sure calculations were correct and reviewed. Effect: The College was not in compliance with how the R2T4 calculation was prepared and submitted. It is possible for errors to occur and not be caught in a timely manner when there isn?t a documented review process. Repeat Finding: Yes. Prior year finding 2021-007 and 2021-008 Recommendation: We recommend the process be put in place to ensure the calculation of the R2T4 is done correctly and that all calculations are reviewed and such review is documented. Views of responsible officials: There is no disagreement with the audit finding.