Finding Text
Identification of Federal Program – 84.063 Federal Pell Grant; Department of Education; P063P211643
Criteria – The College is to accurately calculate return of Title IV funds for withdrawn students who began attendance, allocate the return of Title IV funds as required, return Title IV funds timely, and notify borrowers of returned loans. (34 CFR section 668)
Condition – During the audit, we selected 21 students that had return of funds during the 2022-2023 fiscal year. Although the calculation of return of funds appeared accurate, the return of funds was never applied to one student in our sample.
Cause – This condition is a result of a review not being performed to ensure that all student accounts that required a return of funds, were actually posted.
Effect – The student received 100% of the federal funds even though they had withdrawn and were not eligible for the total amount.
Context – During our audit procedures where we verified that the return of funds was applied to the students’ account, we were unable to verify the return of funds for the one student identified above. College management was not able to provide an explanation why the return of funds was not applied.
Recommendation – We recommend the College establish a review process to ensure that all return of funds are applied to the students’ account.
Views of Responsible Officials and Planned Corrective Actions – The Financial Aid Office is in the process of updating all processes and procedures to create checks and balances to ensure that all return of funds are processed appropriately.