Finding 637779 (2022-001)

Federal Program - Student Financial Assistance Cluster, Federal Direct Student Loans Federal Agency - U.S. Department of Education Pass-Through Entity - Not Applicable Assistance Listing Number - 84.268 Federal Award Year - June 30, 2022 Criteria: Title IV regulations (34 CFR 668.22) require the College to return the unearned portion of grants or loans to the Title IV program by calculating the refund based on three decimal places. Condition: The federal aid refunds for two of the four students tested were not calculated correctly and resulted in the College not refunding the correct amounts to the Title IV program. The sample was not a statistically valid sample but was determined using Chapter 21 - Audit Sampling Considerations of Uniform Guidance Compliance Audits of the Government Auditing Standards and Single Audits Audit Guide. Cause: The College was calculating the refund based on two decimal places instead of the required three, causing the student refund to be calculated incorrectly. Effect: The College refunded the student the incorrect amount based on the calculation. Questioned Costs: There are no questioned costs associated with this finding. Recommendation: The College should ensure the calculation for returns is including three decimal places instead of two. Views of Responsible Officials: The College acknowledges and concurs with the finding and has corrected the student records discovered in the audit. The College has already implemented the correct calculation when determining the student refund. The College went through the withdrawal population and determined all other refunds were properly calculated.