Finding 634458 (2022-001)

- Repeat Finding
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-03-30
Audit: 54568
Organization: Visible Music College (TN)
Auditor: Dalcpa

AI Summary

  • Core Issue: The institution returned Title IV funds late, specifically 85 days beyond the allowable timeframe.
  • Impacted Requirements: Compliance with 34 CFR 668.22(1) regarding timely returns of Title IV funds after student withdrawals.
  • Recommended Follow-Up: Review and strengthen policies and procedures for R2T4 to ensure timely returns in the future.

Finding Text

Finding 2022-001: Late Return to Title IV (R2T4) Criteria: In accordance with 34 CFR 668.22(1) when a recipient of title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of title IV grant or loan assistance that the student earned as of the student's withdrawal date. Condition: The Institution returned the correct amount of Title IV funds beyond the allowable time frame. Cause: The Institution did not follow its ordinary procedures in returning Title IV funds in a timely manner. Effect: The Institution may owe interest on funds returned late. Nature, Extent of Issue, and Questioned Costs: In 1 instance out of 65 files reviewed, of which 25 students withdrew, the Institution returned the correct amount of Title IV funds beyond the allowable time frame. In this instance, the Institution returned the correct amount of funds 85 days beyond the allowable time frame. Recommendation: We recommend the Institution review its policies and procedures regarding R2T4 and enact stronger controls to ensure that all future returns are performed timely. Views of Responsible Official: The Institution concurs with this finding and has procedures in place as outlined in the Corrective Action Plan to ensure compliance with requirements.

Categories

Student Financial Aid Matching / Level of Effort / Earmarking

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $1.46M
84.063 Federal Pell Grant Program $581,494
84.425 Education Stabilization Fund $23,950
84.033 Federal Work-Study Program $15,442
84.007 Federal Supplemental Educational Opportunity Grants $15,000