Finding Text
Federal Agency: U.S. Department of Education Federal Program Name: Student Financial Aid Cluster Assistance Listing Number: 84.007, 84.033, 84.063, 84.268 Federal Award Identification Number and Year: N/A Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: September 1, 2024 – August 31, 2025 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 685.309(b) and 34 CFR 682.610(c) states that because a student begins earning Title IV funds on the first day of attendance, even if the student withdraws before a school’s census date, the school must perform an R2T4 calculation using the number of days or the number of scheduled clock hours the student attended class. The school must include in the R2T4 calculation all forms of Title IV aid that were disbursed or that could have been disbursed, even if the student receives a full tuition refund. Condition: We noted that one of the sixty students tested was not calculated for an R2T4 in the current year when they should have been. Questioned Costs: $3,199 Context: The student withdrew from the District mobile app, bypassing required advisor approval. This prevented the R2T4 workflow from recognizing the withdrawal, and the R2T4 calculation was delayed until identified. Cause: The District did not evaluate the student for R2T4. Effect: One of the students were not calculated. Repeat Finding: No Recommendation: We recommend the District should implement a comprehensive review process for R2T4 calculations and financial aid withdrawal listings to ensure all student withdrawals are accurately identified and processed in a timely manner. Views of Responsible Officials: There is no disagreement with the audit finding.