Finding Text
Criteria 34 CFR 668.173(b) - Returns of Title IV (R2T4) 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 – For 1 out of 60 students tested, we noted a deviation from the District’s designed procedures and controls which resulted in the District not returning the institution’s portion of the required return in a timely manner. Questioned Costs There are no questioned costs associated with the condition identified. Context There were 1,038 Return of Title IV calculations performed during the year ended June 30, 2025. Effect The District is not in compliance with the Federal Return of Title IV requirements described in the OMB Compliance Supplement. Cause The District’s internal controls were not sufficient to ensure that the Return of Title IV funds were returned in a timely manner. Repeat Finding (Yes or No) No. Recommendation The District should strengthen internal controls over the Return of Title IV calculations to ensure that funds are returned in a timely manner.