Finding Text
FINDING NO. 2022-003: Refunds Not Performed ? Significant Deficiency in Internal Control and Instances of Non-Compliance Federal Program: Student Financial Assistance Cluster Federal Agency: U. S. Department of Education Award Year: 2021-22 Statement of Condition A Return of Title IV funds calculation was not performed when a student withdrew from an instructional program. Criteria Refunds for withdrawn students are to be properly calculated in accordance with applicable refund policies. 34 CFR 668.22. Effect Of 31 files tested for refund compliance, a Return to Title IV Funds calculation was not performed for 1 student at the time of withdrawal. The Institution?s internal control over the related compliance requirement did not function as designed and was not effective in detecting the non-compliance. Therefore, this finding represents a significant deficiency in internal control. Cause In this isolated instance, procedures to ensure the proper completion of refund calculations and appropriate payment of resulting refunds due were not followed. Recommendation Due diligence and care must be exercised in completing refund calculations in accordance with SFA program requirements. Additional Information Upon learning of this finding, the Institution performed the Return of Title IV Funds calculation for the student. The calculation resulted in refunds due in the amounts of $1,485 to the student?s Federal Subsidized Direct Loan, $1,979 to the student?s Federal Unsubsidized Direct Loan, and $1,491 to the Federal Pell Grant Program. We reviewed the refund calculation and the return of funds documentation and found them accurate. There are no remaining questioned costs associated with this finding. Institution Comments The Institution does not dispute this finding. The Institution has procedures in place to ensure full compliance as detailed in the Corrective Action Plan.