ODESSA COLLEGE DISTRICT

Finding 2024-001 Significant Deficiency in Internal Control over Compliance and Other Matters Federal Agency: U.S. Department of Education Federal Program Name: Student Financial Assistance Cluster Assistance Listing Number(s): 84.007, 84.033, 84.063, 84.268 Compliance Requirement: Special Tests and Provisions – Return of Title IV Funds Award Period: 2023-2024 Criteria or Specific Requirement: 34 CFR 668.22 requires that when a recipient of Title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV grant or loan assistance that the student earned as of the student's withdrawal date in accordance with Federal regulations and return the unearned portion of the grant or loan funds to the Title IV programs as soon as possible but no later than 45 days after the withdrawal date. Condition: The return of Title IV funding amount for a sample of 9 students tested was not returned within 45 days after the withdrawal date. Cause: The College’s process consists of returning the required Title IV funds once a semester for all students regardless of the individual withdrawal date. Effect: All students who withdrew over 45 days from the date the College returns the Title IV funds and that did not earn all their title IV funds are out of compliance. Questioned Cost: None Effect: The College retuned the Title IV funds; however, the returns were outside of the 45 day requirement. Repeat Finding: The finding is not a repeat finding. Recommendation: The College should reevaluate the existing process and related control to ensure that the Title IV funds are returned to the Department of Education on a timely manner. View of Responsible Officials: Management agrees with the finding. See Corrective Action Plan.