Finding Text
Criteria 34 CFR 668.22(e)-(g) Institutions must perform Return of Title IV (R2T4) calculations accurately to determine the amount of Title IV funds earned by the student and the amount to be returned by the institution. Errors in these calculations may result in incorrect amounts being returned, leading to noncompliance with federal regulations. Condition Significant Deficiency in Internal Control over Compliance and Instance of Noncompliance – Four out of sixteen students tested, the District inaccurately calculated the Return of Title IV funds due to error in counting the calendar days completed and the total calendar days in the period. Questioned Costs There are no questioned costs associated with the condition identified. Context There were 104 Return of Title IV calculations performed during the year ended June 30, 2025. Effect Without proper monitoring of Return of Title IV calculations, the District risks noncompliance with the above referenced criteria. Cause The District’s internal controls were not adequately designed to prevent erroneous information utilized in the calculations. Return of Title IV funds were inaccurately calculated in the Spring 2025 term because the system automatically included the early Spring session as part of the calculation when it should not have been included. Repeat Finding (Yes or No) No. Recommendation The District should strengthen internal controls over the review of Return of Title IV calculations to ensure that calculations are accurate.