Finding Text
Special Tests and Provisions - Return to Title IV
Program Name: Student Financial Assistance Cluster
Assistance Listing Number: 84.063, 84.007, 84.268, 84.033
Federal Agency: U.S. Department of Education (ED)
Direct funded by the U.S. Department of Education (ED)
Criteria or Specific Requirements
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 aid earned by the student as of the student’s withdrawal date. For a student who withdraws, without providing notification, from a school that is not required to take attendance, the school must determine the withdrawal date no later than 30 days after the end of the earlier of (1) the payment period or the period of enrollment (as applicable), (2) the academic year, or (3) the student’s educational program in accordance with 34 CFR 668.22 (l)(3).
Condition
During our testing, we noted 3 instances out of 38 students tested where the date of determination of the student’s withdrawal date was outside the required timeframe of 30 days for unofficial withdrawals.
Context
A non-statistical sample of 15 return of Title IV calculations were tested out of a total population of 101 return of Title IV calculations for West Hills College - Coalinga
A non-statistical sample of 23 return of Title IV calculations were tested out of a total population of 155 return of Title IV calculations for West Hills College - Lemoore
Effect
In 3 of the 15 calculations tested for West Hills College - Coalinga, the determination of when a student withdrew was done outside the 30-day timeframe.
Cause
The District’s internal controls associated with timely return to Title IV procedures failed to ensure that withdrawal dates for “unofficial withdrawals” were determined within the 30 day requirement.
Recommendation
Management should have a process in place to ensure that the determination date for students that unofficially withdraw are completed within 30 days of the end of the payment period.