Finding Text
2025-003 Direct Program - Department of Education Student Financial Assistance Cluster Federal Financial Assistance Listing: 84.007, 84.033, 84.063, 84.268 Award Numbers: Not Available Compliance Requirement: Special Tests & Provisions - Return of Title IV Funds (R2T4) Type of Finding: Significant Deficiency in Internal control over Compliance Criteria: Institutions must determine the amount of Title IV aid earned by the student as of the student’s withdrawal date. If the total amount of Title IV assistance earned by the student is less than the amount that was disbursed to the student or on his or her behalf as of the date of the institution’s determination that the student withdrew, the difference must be returned to the Title IV programs as outlined in this section and no additional disbursements may be made to the student for the payment period or period of enrollment. If the amount the student earned is greater than the amount disbursed, the difference between the amounts must be treated as a post-withdrawal disbursement (34 CFR 668.22(a)(1) through (a)(5)). Condition: In our testing of 60 students, we found one student that was notified of the requirement to return Title IV funds in excess of the amount actually required to be returned. The error was caught by the District, but the student’s account was never corrected to the appropriate amount of the return. Cause: The District’s existing control procedures to ensure accurate calculation, notification, and application of the return of Title IV funds were not functioning properly. Effect: The wrong amount of Title IV awards to be returned was communicated to the student and posted to the student’s account and never corrected. Questioned Costs: None reported Context/Sampling: Nonstatistical sample of 60 students receiving financial aid out of 2,986 total students receiving financial aid. Repeat Finding from Prior Year: No Recommendation: The District should have a control or process to ensure return of Title IV awards are calculated, communicated and applied to the student’s account accurately. Views of Responsible Officials: The District’s management agrees with the finding.