Single Audit Report Fiscal Year Ended June 30, 2012 - State ...

State of GeorgiaFederal Awards Findings and Questioned CostsFor the Fiscal Year Ended June 30, 20122. One student withdrew on March 26, 2012, and at the time of audit testing in July 2012, the refundcalculation had not been processed. This student had completed over 60% of the semester and didnot owe a refund.Cause:Effect:Recommendation:These deficiencies were the result of management's failure to properly process student financial aidrefunds in accordance with Federal regulations.The Student Financial Assistance Office did not return unearned funds in a timely manner.The Technical College should develop and implement procedures to ensure that student financial aidrefunds are properly calculated and that unearned funds are correctly returned to the appropriateaccounts in a timely manner in accordance with the Higher Education Amendments 1998, Public Law105-244. The college should also contact the U. S. Department of Education regarding resolution ofthis finding.SOUTHWEST GEORGIA TECHNICAL COLLEGEFinding Control Number: FA-846-12-01SPECIAL TESTING AND PROVISIONSDeficiencies in Student Financial Assistance ProcessU. S. Department of EducationStudent Financial Assistance Cluster ProgramCondition:Criteria:Information:Cause:Effect:Recommendation:The Student Financial Assistance Office failed to ensure that unearned Title IV funds were returned ina timely manner.Provisions included in 34 CFR 668 provide general requirements for administering Student FinancialAssistance (SFA) programs. 34 CFR 668.22(j)(l) states that "An institution must return the amount ofthe Title IV funds . . . . as soon as possible but no later than 45 days after the date of the institution'sdetermination that the student withdrew . . . .".A sample of twenty-four students that received Federal financial assistance and withdrew from theTechnical College were selected to determine if refunds were calculated and returned in the correctamount and in a timely manner to the proper funding agency and/or student. Our examination revealedthat the Technical College failed to return the funds to the grantor program within the required timeframe for nine of the twenty-four students tested.These deficiencies were the result of management's failure to ensure that student financial assistancerefunds are properly refunded in a timely manner in accordance with Federal regulations.The SFA Office is not refunding the student financial assistance refunds to the Title IV Federalprograms in a timely manner.The Technical College should develop and implement procedures to ensure that student financialassistance refunds are returned to the appropriate accounts in a timely manner in accordance with theHigher Education Amendments of 1998, Public Law 105-204.(*) THIS FINDING RESULTED FROM AN AUDIT PERFORMED BY OTHER AUDITORS.126