Finding 1090563 (2024-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2024-12-12

AI Summary

  • Core Issue: There were errors in calculating the number of days completed for students withdrawing from module courses, leading to noncompliance with federal regulations.
  • Impacted Requirements: The calculations did not align with 34 CFR 668.22(f)(1)(i) and 34 CFR 668.22(l)(9), which dictate how to determine enrollment periods for Title IV funding.
  • Recommended Follow-Up: The District should enhance its internal controls and procedures for Return to Title IV calculations to ensure accuracy and compliance.

Finding Text

Criteria or Specific Requirements 34 CFR 668.22(f)(1)(i) For purpose of paragraph (e)(2)(i) of this section, the percentage of the payment period or period of enrollment completed is determined in the case of a program that is measured in credit hours, by dividing the total number of calendar days in the payment period or period of enrollment into the number of calendar days completed in that period as of the student’s withdrawal date. 34 CFR 668.22(l)(9) A student in a program offered in modules is scheduled to complete the days in a module if the student’s coursework in that module was used to determine the amount of the student’s eligibility for Title IV, Higher Education Act funds for the payment period or period of enrollment. Condition Significant Deficiency in Internal Control over Compliance – We noted the following noncompliance for Return to Title IV calculations: 1. One out of sixty Return to Title IV (R2T4) calculations did not calculate the correct number of days completed based on the module courses the student withdrew from. 2. One out of sixty R2T4 calculations did not calculate the correct number of days in the period of enrollment related to the module course. Questioned Costs There are no questioned costs associated with the noncompliance. Context We tested a non-statistical sample of 60 R2T4 calculations of a total 661 calculations performed by the District during the 2024 fiscal year. Effect Without proper monitoring of calculations performed over students enrolled in module courses, the District is at risk of noncompliance with the above referenced criteria. Cause The District’s internal controls associated with the Return to Title IV procedures failed to ensure that all calculations are done accurately. Repeat Finding (Yes or No) No. Recommendation The District should strengthen procedures to ensure that the calculations are accurately calculated. View of Responsible Officials and Corrective Action Plan The District is reviewing its policy and procedures to explore various options for enhancements to our current enrollment management business practices. The District is currently working on building targeted, automated email messages that would go out before and after the grade deadline to reduce the number of RD grades. The District has contracted with consulting services to further evaluate our financial aid policies and procedures, enhance our system reports and provide best practices to ensure compliancy in accurate withdrawal calculations.

Categories

Student Financial Aid Subrecipient Monitoring Eligibility Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 514116 2024-001
    Significant Deficiency
  • 514117 2024-001
    Significant Deficiency
  • 514118 2024-001
    Significant Deficiency
  • 514119 2024-001
    Significant Deficiency
  • 514120 2024-001
    Significant Deficiency
  • 514121 2024-001
    Significant Deficiency
  • 514122 2024-001
    Significant Deficiency
  • 1090558 2024-001
    Significant Deficiency
  • 1090559 2024-001
    Significant Deficiency
  • 1090560 2024-001
    Significant Deficiency
  • 1090561 2024-001
    Significant Deficiency
  • 1090562 2024-001
    Significant Deficiency
  • 1090564 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $5.83M
84.268 Federal Direct Student Loans $1.45M
84.048 Career and Technical Education -- Basic Grants to States $591,027
84.031 Higher Education Institutional Aid $579,059
21.027 Coronavirus State and Local Fiscal Recovery Funds $564,187
84.044 Trio Talent Search $306,541
84.047 Trio Upward Bound $285,911
84.002 Adult Education - Basic Grants to States $240,539
64.028 Post-9/11 Veterans Educational Assistance $220,708
93.558 Temporary Assistance for Needy Families $98,043
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $58,480
10.558 Child and Adult Care Food Program $46,058
84.063 Federal Pell Grant Program $41,880
64.000 Veterans Education $41,043
84.007 Federal Supplemental Educational Opportunity Grants $29,204
84.033 Federal Work-Study Program $20,744
93.575 Child Care and Development Block Grant $4,400