Finding Text
Material Weakness and Material Noncompliance – Return of Title IV Funds
Federal Program Information:
Federal Pell Grant Program, ALN 84.063, Federal Supplemental Education Opportunity Grants, ALN 84.007, Federal Direct Student Loans, ALN 84.268
Criteria:
Returns of Title IV funds are required to be deposited or transferred into the SFA account or electronic fund transfers initiated to the Department of Education (ED) as soon as possible, but no later than 45 days after the date the institution determines that the student withdrew (34 CFR 668.173(b)).
Condition:
The College did not return Title IV funds to the ED within the required time frame for certain students who required a return of funds.
Context:
Of the 29 withdrawn students tested for proper return of Title IV funds, the funds for 6 students requiring a return were not returned to ED by the College within the required time frame.
Questioned Costs:
None
Cause and Effect:
A manual process the College had in place to identify students with return to Title IV calculations was not properly followed to make sure calculations performed were processed and returned to ED within the required time frame. This led to returns of Title IV funds to ED being completed after the required time frame.
Recommendation:
We recommend that the College institute a process to ensure that all returns of Title IV aid are calculated and returned within the required time frame.
Management’s Response:
See corrective action plan.