Audit 380833

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.