Finding Text
2022-003 Department of Education Student Financial Aid Cluster CFDA # 84.268 ? Federal Direct Student Loans CFDA # 84.007 ? Federal Supplemental Educational Opportunity Grants (FSEOG) CFDA # 84.063 ? Federal Pell Grant Program 2021-2022 Award Year Special Tests and Provisions ? Return of Title IV Funds ? Calculation of the Amount of Title IV Assistance to be Returned, Timely Return of Funds Significant Deficiency in Internal Controls over Compliance Criteria: 34 CFR section 668.22 provides the criteria and guidance on the total number of calendar days in a payment period or period of enrollment for purposes of calculating the percentage of federal aid earned. Condition: During testing over return of Title IV funds, the following deficiencies were noted: ?5 of 8 students? percentage completion rate were calculated incorrectly which resulted in 3 of the 8students not having the correct amount of Title IV funds to be returned. ?1 of 8 students did not return Title IV funds in the required time frame. Cause: The errors all related to students who withdrew in the fall semester as the financial aid staff excluded days from institutionally scheduled breaks of at least 5 days that should not have been excluded; and, therefore, the total number of calendar days in the payment period or enrollment period was understated for purposes of the calculation of percentage of completion. The late reporting was a result of a student being missed in a batch reporting in the system. Effect: The effect of these errors resulted in aid not being returned in the proper timeframe and incorrect amounts of aid returned. Questioned Costs: None reported. Context/Sampling: A nonstatistical sample of 8 students out of 28 were selected for testing the return of Title IV funds. Repeat Finding from Prior Year(s): Yes. Recommendation: We recommend that the formula used to complete the calculation be reviewed at the start of each semester to ensure that the calculation is completed correctly. Views of Responsible Officials: Management agrees with the finding.