Audit 382233

Criteria 34 CFR 668.22(e)-(g) Institutions must perform Return of Title IV (R2T4) calculations accurately to determine the amount of Title IV funds earned by the student and the amount to be returned by the institution. Errors in these calculations may result in incorrect amounts being returned, leading to noncompliance with federal regulations. Condition Significant Deficiency in Internal Control over Compliance and Instance of Noncompliance – Four out of sixteen students tested, the District inaccurately calculated the Return of Title IV funds due to error in counting the calendar days completed and the total calendar days in the period. Questioned Costs There are no questioned costs associated with the condition identified. Context There were 104 Return of Title IV calculations performed during the year ended June 30, 2025. Effect Without proper monitoring of Return of Title IV calculations, the District risks noncompliance with the above referenced criteria. Cause The District’s internal controls were not adequately designed to prevent erroneous information utilized in the calculations. Return of Title IV funds were inaccurately calculated in the Spring 2025 term because the system automatically included the early Spring session as part of the calculation when it should not have been included. Repeat Finding (Yes or No) No. Recommendation The District should strengthen internal controls over the review of Return of Title IV calculations to ensure that calculations are accurate.

Criteria 34 CFR 690.83(b)(2) and 34 CFR 685.309 states that Institutions are responsible for timely and accurate reporting of a student’s enrollment status and changes in those enrollment statuses, whether they report directly or via a third-party servicer. When an Institution is made aware of a change in a student’s enrollment status, the Institution has 60 days to update the change in enrollment status via NSLDS. Condition Significant Deficiency in Internal Control over Compliance and Instance of Noncompliance – During our review of the enrollment reporting requirements, we observed the following:  For 2 out of 20 students tested who had a change in their enrollment status during the period subject to audit, the District did not accurately report the effective date of the change.  For 1 out of 20 students tested who had a change in their enrollment status during the period subject to audit , the District did not report the student’s withdrawal from enrollment to NSLDS. Questioned Costs There are no questioned costs associated with the condition identified. Context During the fiscal year, the District had 104 students who had a change in their enrollment status. Effect The District is not in compliance with the Federal enrollment reporting requirements described in the OMB Compliance Supplement. Cause The District did not accurately report enrollment information for students under the Pell Grant and Direct Loan programs via NSLDS. The administration of the Title IV programs depends heavily on the accuracy and timeliness of the enrollment information reported by institutions. Repeat Finding (Yes or No) No. Recommendation The District should implement a process to review, update, and verify student enrollment information that appear on the Enrollment Reporting Roster file or on the Enrollment Maintenance page of the NSLDS Professional Access (NSLDSFAP) website.