Finding Text
Student Financial Assistance Cluster
Federal Supplemental Education Opportunity Grants, ALN 84.007; Federal Work-Student Program, ALN 84.033; Federal Pell Grant Program, ALN 84.063; Federal Direct Student Loans, ALN 84.268
U. S. Department of Education, Program Year 2023-2024
Type of Finding – Material Weakness in Internal Control Over Compliance
Criteria or Specific Requirement – Special Tests and Provisions – Return of Title IV Funds [34 CFR 668.22(a)(1) through (a)(5)].
Condition – The District did not properly calculate the total amount disbursed or to be disbursed, which led to incorrect calculations of funds to be returned. Additionally, the District did not provide evidence of date of determination used in calculation.
Cause – The District’s internal controls did not ensure accurate information was inputted into the calculation of returns. Additionally, no detective controls for supervisory review and approval of the calculations were performed to detect errors.
Effect or Potential Effect – Incorrect amounts were returned to the Department of Education or disbursed to student.
Questioned Costs – $5,946 – ALN 84.063; $3,557 – ALN 84.268. Total projected questioned costs were $36,916.
Context – Out of a population of 491 students who withdrew during the 2023-2024 award year, a sample of 40 students was selected for testing. Our sample was not, and was not intended to be, statistically valid. Of the 40 students tested, 14 students’ calculations were incorrect. Additionally, $9,503 calculated to be returned to the Department of Education was not returned.
Identification as a Repeat Finding, if Applicable – N/A
Recommendation – The District should ensure its process and internal controls are updated to ensure total days in the semester are calculated correctly and disbursements are made timely. Additionally, the related calculations should be subject to review and approval as a best practice.
Views of Responsible Officials and Planned Corrective Actions – There is no disagreement with the audit finding. See corrective action plan.