Audit 377447

Assistance Listing Number, Federal Agency, and Program Name Student Financial Assistance Cluster U.S. Department of Education: • ALN 84.007 Federal Supplemental Educational Opportunity Grant Program • ALN 84.033 Federal Work Study Program • ALN 84.063 Federal Pell Grant Program • ALN 84.268 Federal Direct Loan Program Federal Award Identification Number and Year Various Pass through Entity N/A Finding Type Significant deficiency Repeat Finding No Criteria The School District has 45 days from the date the School District determines a student’s withdrawal date to calculate a return to Title IV refund calculation for the student and return the funds. Withdrawal dates are defined as the time when the student officially withdraws or expresses notification to withdraw or, if the student does not officially withdraw, the date that the School District determines the student is no longer in attendance (34 CFR Section 668.22(j)). Condition For one student, the School District used an incorrect number of days attended in the return to Title IV calculation, resulting in an inaccurate refund amount. Questioned Costs $3,069 ALN 84.063 Federal Pell Grant Program If Questioned Costs are not Determinable, Description of Why Known Questioned Costs were Undetermined or Otherwise Could not be Reported N/A Identification of How Questioned Costs Were Computed The questioned costs include the total Title IV assistance disbursed to the one student tested in which the School District used an incorrect number of days attended in the return to Title IV calculation. Context 6 of the 40 calculations tested involved students enrolled in shorter sessions (8 12 weeks), which require careful tracking of attendance dates. The error occurred in one of these cases. Cause and Effect The School District does not have a formal review process for return to Title IV calculations. This increases the risk of manual errors, which may lead to incorrect refunds and potential noncompliance with federal regulations. Recommendation The School District should implement a documented review procedure for all return to Title IV calculations, including verification of withdrawal dates and days attended, to ensure accuracy and compliance. Views of Responsible Officials and Corrective Action Plan We have conducted ongoing training, created R2T4 Quick References, Term Calendar Calculators, and R2T4 Decision Trees, as well as other tools to assist R2T4 team members. These are supplemental to the body of regulations related to R2T4 found in the Student Aid Handbook. We will also perform and document a sample based review of R2T4 calculations on a semester by semester basis.