Finding 960199 (2022-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2024-03-22
Audit: 296794
Organization: Denmark Technical College (SC)

AI Summary

  • Core Issue: The College did not return Title IV funds on time in 5 out of 11 cases, violating federal requirements.
  • Impacted Requirements: Title IV mandates that funds must be returned within 45 days of determining a student's withdrawal.
  • Recommended Follow-Up: The College should update its policies and procedures to ensure timely reviews of Title IV calculations and compliance.

Finding Text

Criteria: Title IV requires institutions to return Title IV funds into the student financial aid account or electronic fund transfers initiated to Department of Education as soon as possible, but no later than 45 days after the date the institution determines the student withdrew. Condition: In 5 out of 11 instances for the year ended June 30, 2022, the College failed to return the Title IV funds within the required timeframe. Context: We addressed the matter with College management who are aware of the requirements to return Title IV funds into the student financial aid account or electronic fund transfers initiated to Department of Education as soon as possible, but no later than 45 days after the date the institution determines that the student withdrew. Effect: Failure to properly review and adhere to policies and procedures can lead to noncompliance and the misappropriation of federal funds that are not detected during the normal course of business. Cause: Management oversight. Recommendation: We recommend the College review and update its policies and procedures to ensure all student Title IV calculations are reviewed timely to ensure funds are returned in a timely manner.

Categories

Student Financial Aid Internal Control / Segregation of Duties

Other Findings in this Audit

  • 383756 2022-001
    Material Weakness Repeat
  • 383757 2022-001
    Material Weakness Repeat
  • 383758 2022-001
    Material Weakness Repeat
  • 383759 2022-001
    Material Weakness Repeat
  • 383760 2022-001
    Material Weakness Repeat
  • 383761 2022-002
    Material Weakness
  • 383762 2022-002
    Material Weakness
  • 383763 2022-002
    Material Weakness
  • 383764 2022-002
    Material Weakness
  • 383765 2022-002
    Material Weakness
  • 960198 2022-001
    Material Weakness Repeat
  • 960200 2022-001
    Material Weakness Repeat
  • 960201 2022-001
    Material Weakness Repeat
  • 960202 2022-001
    Material Weakness Repeat
  • 960203 2022-002
    Material Weakness
  • 960204 2022-002
    Material Weakness
  • 960205 2022-002
    Material Weakness
  • 960206 2022-002
    Material Weakness
  • 960207 2022-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.425 Covid-19 Education Stabilization Fund: Heerf - Hbcu Portion $5.24M
84.063 Federal Pell Grant Program $1.41M
84.425 Covid-19 Education Stabilization Fund: Heerf - Institutional Portion $902,538
84.268 Federal Direct Student Loans $873,678
84.425 Covid-19 Education Stabilization Fund: Heerf - Student Portion $708,140
84.031B Title III - Strengthening Institutions $382,492
84.031B Title III - Safra $265,343
84.425 Covid-19 Education Stabilization Fund: Geer Workforce $204,894
84.007 Federal Supplemental Educational Opportunity Grants $181,152
84.425 Covid-19 Education Stabilization Fund: Geer $173,114
84.033 Federal Work-Study Program $110,378
84.048 Career and Technical Education -- Basic Grants to States $52,195
84.047A Trio_upward Bound $8,500
84.031B Title III - Safra (carryover) $6,097
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $2,040