Paris Junior College

Lack of Internal Controls Over Timeliness and Accuracy of Return to Title IV (R2T4) Calculations. Condition: During the course of our audit, we noted that the College did not consistently meet federal requirements for timely and accurate completion of Return to Title IV (R2T4) calculations. Criteria: Internal control procedures affect the College's ability to maintain compliance. Management must establish and maintain effective internal controls related to the R2T4 process and determination of the amount of Title IV funds to be returned. Cause: The College lacked adequate internal controls, including (1) insufficient management review of R2T4 calculations, (2) inconsistent application of federal regulations, and (3) untimely adjustments to student accounts, resulting in funds drawn from the Department of Education to be adjusted outside of the 45-day requirement. Effect: The lack of effective internal controls over R2T4 process could result in overpayment of federal funds to the College or students. Recommendation: We recommend the College establish and document internal controls of the R2T4 process, including management review to ensure that all R2T4 calculations are accurate, complete, and performed in a timely manner. Views of Responsible Official and Planned Corrective Actions: Paris Junior College management will ensure that a standardized procedure including internal controls is established and implemented to ensure the R2T4 process is timely and accurate.

Condition: During the course of our audit, we noted that during the student application process, the program director did not review the application and supporting documentation to verify that eligibility compliance requirements were met. Criteria: Internal control procedures affect the College’s ability to maintain compliance. Management must establish and maintain effective internal controls related to the student application process and determination of eligibility. Cause: The College failed to implement internal controls in the Student Support Services TRIO program related to the eligibility requirements to ensure compliance.

Effect: As a result of this condition, the student application process and determination of eligibility was not reviewed by the program director to ensure eligibility compliance requirements were met.

Recommendation: We recommend the College implement a review process of students’ applications to ensure eligibility compliance requirements are met.

Views of Responsible Official and Planned Corrective Actions: Paris Junior College management will ensure that a comprehensive procedure is established and implemented to ensure a review of student applications meet eligibility compliance requirements.

Paris Junior College August 31, 2023 and 2022 Schedule of Findings and Questioned Costs (Continued) Year Ended August 31, 2023 C. Findings and Questioned Costs for Federal Award U.S. Department of Education Program Name: Student Financial Assistance Cluster CFDA#: 84.007, 84.033, 84.063, 84.268 Significant Deficiency Finding 2023-02 - Using a Servicer or Financial Institution to Deliver Title IV Credit Balances to a Card or Other Access Device Compliance and Internal Control Condition: During the course of our audit, we noted that a URL for the contract was not provided to Department of Education for publication in the Cash Management Contracts Database and there was no evidence of performing due diligence review to ascertain whether the fees imposed under the arrangement are consistent with or below prevailing market rates. Criteria: Internal control procedures affect the College's ability to maintain compliance. Management must establish and maintain effective internal controls related to using a service or financial institution to provide reasonable assurance that the compliance requirements have been met. Cause: The College failed to monitor requirements to ensure compliance. Effect: As a result of the condition, the College was not compliant in these areas when using a servicer of financial institutions to deliver Title IV credit balances to a card or other access device. Recommendation: We recommend the College provide the URL for the contract to Department of Education, and perform due diligence by reviewing the fees imposed under the arrangement. Views of Responsible Official and Planned Corrective Actions: Paris Junior College management will ensure that a comprehensive procedure is established and implemented to ensure accurate and timely reporting.