Special Tests and Provisions – Return of Title IV Funds Federal Agency: U.S. Department of Education Pass-Through Entity: Direct Funded Program Name: Student Financial Assistance Cluster Assistance Listing Numbers: 84.007, 84.033, 84.063, and 84.268 Award Identification Number: P007A240313, P033A240313, P063P241112, P268K241112 Award Year: 2024-2025 Criteria or Specific Requirements 34 CFR 668.173(b) Returns of Title IV (R2T4) funds are required to be deposited or transferred into the Student Financial Aid (SFA) account or electronic fund transfers initiated to ED as soon as possible, but no later than 45 days after the date the institution determines that the student withdrew. Condition Significant Deficiency in Internal Control over Compliance and Instance of Noncompliance – For twenty-six out of sixty students tested, we noted deviations from the District’s designed procedures and controls which resulted in the District not returning the institution’s portion of the required return within the required timeframe. Questioned Costs There are no questioned costs associated with the condition identified. All funds were returned, however not within the 45-day window. Context There were 1,685 Return of Title IV calculations performed during the year ended June 30, 2025. Effect Without proper monitoring of Return of Title IV calculations and when funds are to be returned, the District risks noncompliance with the above referenced criteria. Cause The District’s internal controls were not adequately designed to ensure funds are returned in a timely manner. Repeat Finding (Yes or No) No. Recommendation The District should strengthen internal controls over the Return of Title IV calculations to ensure that funds are returned in a timely manner.