Finding 973488 (2023-002)

Finding 2023-002 - Untimely Return of Title IV Requirements Grantor: U.S. Department of Education Program: Student Financial Assistance Cluster Assistance Listing #: 84.268, 84.063 Award Titles: Federal Direct Student Loan Program, Federal Pell Grant Program Award Years: 7/2022 – 6/2024 Criteria 34 CFR 668.173(b) (b) Timely return of title IV, HEA program funds. In accordance with procedures established by the Secretary or FFEL Program lender, an institution returns unearned title IV, HEA program funds timely if— 1. The institution deposits or transfers the funds into the bank account it maintains under § 668.163 no later than 45 days after the date it determines that the student withdrew. Condition Of the 116 students that received federal student financial assistance and withdrew from the College during the fiscal year, we selected 12 students for testing compliance with the return of title IV fund requirements. Of the 12 students selected, two instances were noted during the Fall 2023 semester in which the return of title IV funds was not completed within 45 days. For the two instances, funds were returned 88 and 82 days, respectively, from the date in which the College determined that the students withdrew. Cause The College experienced staffing turnover in Fall 2023. As a result, the return of title IV calculations were performed late, and the title IV funds were returned after the 45-day requirement. Effect Title IV funds due to the U.S. Department of Education were returned late. Timely returns of title IV funds ensure the College is in an accurate receivable position as the school operates on the reimbursement method for cash management, despite eligibility for the advanced method. Questioned Costs None Recommendation We recommend that the College identify additional individuals to assist in return of title IV calculations as backup for staffing turnover and ensure those individuals responsible have adequate training to perform and review return of title IV fund calculations to ensure timely returns. Management’s Views and Corrective Action Plan: Management’s response is reported in management’s views and corrective action plan included at the end of this report.