Finding Text
Finding 2023-001: Special Tests and Provisions - Return of Title IV Funds Federal Program - Federal Direct Student Loans Federal Agency - U.S. Department of Education Pass-Through Entity - Not Applicable ALN Number - 84.268 Federal Award Year - June 30, 2023 Criteria: Title IV regulations (34 CFR 668.22) require that 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 and return the unearned portion of the grant or loan funds to the Title IV programs as soon as possible but no later than 45 days after the student's withdrawal date. Condition/Context: For one of four students tested, the earned portion used to determine the amount refunded was incorrect. There was a total of 37 students who withdrew during the year. Of these, 26 were eligible for refunds. The sample was not a statistically valid sample. Cause: The College used incorrect start and end dates for the fall 2022 semester for this student when calculating the days earned. Effect: The use of the wrong number of days in the refund calculation resulted in a lower earned portion than actual. As a result, an excess refund of $182 to the Title IV program was made. Questioned Costs: None. Recommendation: We recommend the College require a second individual review all calculations for accuracy.