Audit 388546

Criteria 34 CFR section 668.173(b) Return of Title IV 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 Noncompliance – During our testing of Return to Title IV calculations, we noted that for two of the sixty Return to Title IV calculations, the District returned the required funds later than 45 days after the withdrawal determination date. Questioned Costs There are no questioned costs associated with this finding. Context We tested a non-statistical sample of 60 Return to Title IV calculations of a total of 726 calculations performed by the District during the 2025 fiscal year. Effect Without proper monitoring of the Return to Title IV calculations, the District is at risk of noncompliance with the above referenced criteria. Cause The District’s internal controls did not ensure that documentation of the withdrawal determination dates for Return to Title IV calculations was maintained within the District’s records. This resulted in instances in which the return of funds was not completed within the required time frame. Repeat Finding (Yes or No) No. Recommendation The District should implement procedures to ensure that the date the institution determined a student withdrew from all classes is accurately recorded and retained in each student’s file. The District should also improve controls over the review of the calculations to ensure funds are returned in a timely manner.