Finding 1175357 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-02-25
Audit: 389062
Auditor: EIDE BAILLY LLP

AI Summary

  • Core Issue: There was a significant error in one Return of Title IV calculation, affecting compliance with federal regulations.
  • Impacted Requirements: Institutions must accurately calculate the amount of Title IV funds earned and returned to avoid noncompliance.
  • Recommended Follow-Up: The District should enhance internal controls to ensure accurate calculations of Return of Title IV funds.

Finding Text

Criteria 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. Questioned Costs There are no questioned costs associated with the condition identified. Condition Significant Deficiency in Internal Control over Compliance and an Instance of Noncompliance – For 1 of the 60 Return to Title IV calculations, the percentage of the term completed at the withdrawal date was incorrectly calculated. Context A non-statistical sample of 30 Return of Title IV calculations were tested out of a total population of 113 Return of Title IV calculations for Coalinga College. A non-statistical sample of 30 Return of Title IV calculations were tested out of a total population of 269 Return of Title IV calculations for Lemoore College. Effect In 1 of the 60 calculations, the percentage of the term completed at the withdrawal date was incorrectly calculated. Cause The District did not implement procedures to ensure that the Return to Title IV completion of term was properly calculated. 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.

Corrective Action Plan

The District concurs with the audit finding. The error occurred in the context of courses offered in modules, which are subject to unique federal calculation requirements. To address this finding and strengthen internal controls over R2T4 calculations for modular coursework, Lemoore College will implement the following corrective actions: 1. System-Based Calculation Tool Development Lemoore College will work with the District’s IT department to develop a tool that accurately calculates the percentage of the term completed for students enrolled in courses offered in modules. This tool will be designed to align with applicable federal R2T4 requirements and reduce reliance on manual calculations. 2. Interim Manual Calculation Controls Until the system-based solution is implemented, Lemoore College will implement enhanced review procedures for all R2T4 calculations involving modular coursework, including documented secondary review of the withdrawal date, module dates, and percentage of term completed. 3. Procedure Documentation and Staff Guidance Lemoore College will update internal procedures and provide targeted guidance to Financial Aid staff regarding R2T4 calculations for modular courses, including documentation standards and review expectations. 4. Ongoing Monitoring Supervisory monitoring and periodic spot checks will be conducted to ensure the continued accuracy of R2T4 calculations involving modular coursework.

Categories

Student Financial Aid Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1175354 2025-001
    Material Weakness Repeat
  • 1175355 2025-001
    Material Weakness Repeat
  • 1175356 2025-001
    Material Weakness Repeat
  • 1175358 2025-002
    Material Weakness Repeat
  • 1175359 2025-002
    Material Weakness Repeat
  • 1175360 2025-002
    Material Weakness Repeat
  • 1175361 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.063 FEDERAL PELL GRANT PROGRAM $17.10M
84.141 MIGRANT EDUCATION HIGH SCHOOL EQUIVALENCY PROGRAM $842,307
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $680,163
84.268 FEDERAL DIRECT STUDENT LOANS $598,760
84.149 MIGRANT EDUCATION COLLEGE ASSISTANCE MIGRANT PROGRAM $454,516
84.042 TRIO STUDENT SUPPORT SERVICES $430,991
17.258 WIOA ADULT PROGRAM $388,965
10.752 RURAL ECONNECTIVITY PILOT PROGRAM $385,973
84.033 FEDERAL WORK-STUDY PROGRAM $371,906
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $359,584
16.812 SECOND CHANCE ACT REENTRY INITIATIVE $342,889
47.076 STEM EDUCATION (FORMERLY EDUCATION AND HUMAN RESOURCES) $276,290
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $260,357
84.047 TRIO UPWARD BOUND $254,816
84.031 HIGHER EDUCATION INSTITUTIONAL AID $251,948
10.310 AGRICULTURE AND FOOD RESEARCH INITIATIVE (AFRI) $209,541
10.558 CHILD AND ADULT CARE FOOD PROGRAM $199,524
17.264 NATIONAL FARMWORKER JOBS PROGRAM $139,229
93.558 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES $80,864
84.002 ADULT EDUCATION - BASIC GRANTS TO STATES $57,066
11.307 ECONOMIC ADJUSTMENT ASSISTANCE $41,931
93.575 CHILD CARE AND DEVELOPMENT BLOCK GRANT $19,275
10.223 HISPANIC SERVING INSTITUTIONS EDUCATION GRANTS $2,712
64.117 SURVIVORS AND DEPENDENTS EDUCATIONAL ASSISTANCE $1,824