Finding 969397 (2023-004)

Reference Number: 2023-003 Finding: Special Tests & Provisions - Return of Title IV Funds Student Financial Assistance Cluster: Federal Assistance Listing Numbers: 84.063 Federal Pell Grant Program 84.007 Federal Supplemental Educational Opportunity Grants 84.268 Federal Direct Student Loans Department of Education Award Year 2022 – 2023 Criteria or Specific Requirement: When a recipient of Title IV assistance withdraws during a payment period or period of enrollment, the College must determine the amount of Title IV assistance earned by the student as of the student’s withdrawal date. If the total amount of Title IV assistance earned by the student is less than the amount that was disbursed to the student, the difference must be returned to the Title IV programs. The return must occur as soon as possible, but no later than 45 days after the date of the determination that the student withdrew. Code of Federal Regulations Title 34 Part 668 Section 22, Treatment of Title IV Funds outlines the requirements for calculating the amount of assistance earned by the student as of the withdrawal date, as well as the timeframe and the order in which funds are required to be returned to the various Title IV assistance program. Condition: Out of the population of 44 students who received federal student financial assistance but withdrew or dropped out during the year, a sample of 10 students were selected for testing. One returns of Title IV calculations was not returned within 45 days after the date became aware of the withdrawal, which resulted in Title IV, consisting of Federal Pell Grant, FSEOG, and Federal Direct Student Loan funds, not remitted to the respective programs timely. Context: We tested 10 out of the 44 Return of Title IV Funds calculations performed during the fiscal year 2023. Our sample was not, and was not intended to be, statistically valid. Effect: The return of a student’s Title IV funding was not returned to the Department of Education within the specified 45-day.   Reference Number Finding Cause: Due to management oversight, though the student financial service department was notified of the non-voluntary withdrawal, the student was missed in determining the Title IV amount to be returned. Upon periodic review of the withdrawal log by the Student Financial Services Director, the student’s calculation of return of Title IV was determined and amounts were subsequently returned to the respective programs. Identification as a Repeat Finding: Not applicable. Recommendation: We acknowledge that both issues were internally identified and corrected by the College prior to year-end. However, we recommend that the College continue to enhance policies and procedures over this requirement to ensure proper information is used, and a timely review is completed, at the time of initial calculation, to help ensure the proper amount is returned to the Department of Education within the required time frame. Views of Responsible Officials: We agree with the finding. See separate report for planned corrective actions.