Finding Text
Criteria: In accordance with 34 CFR 668.22(a)(1), when a recipient of Title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV grant or loan assistance that the student earned as of the student’s withdrawal date. In accordance with 34 CFR 668.22(b) and (d)(4),the institution must return those funds for which it is responsible under paragraph (a) of this section to the respective title IV, HEA program as soon as possible, but no later than 30 days after the date that the institution becomes aware that the student will not or has not begun attendance. An institution does not satisfy this requirement if— (i) The institution's records show that the check was issued more than 30 days after the date that the institution becomes aware that the student will not or has not begun attendance; or (ii) The date on the cancelled check shows that the bank used by the Secretary or FFEL Program lender endorsed that check more than 45 days after the date that the institution becomes aware that the student will not or has not begun attendance. Condition: It was noted during our testing of R2T4 calculations that 13 of 60 students selected for R2T4 testing had an instance of non-compliance due to Title IV funds not being returned within the 45 day time limit. Questioned Costs: None. Context: During our audit procedures, we noted 13 of the 60 students selected for R2T4 testing had Title IV funds not returned within the 45-day time limit. Cause: During fiscal year 2025, the District implemented additional procedures to strengthen the R2T4 process in response to the fiscal year 2024 audit finding. Because the 2024 audit report was issued after certain R2T4 calculations had already been completed, the newly implemented procedures resulted in corrections to some previously finalized calculations. 4 of the 13 instances of non‑compliance were attributable to these post‑implementation corrections. The remaining 9 instances of non‑compliance resulted from human error. Effect: The District did not return Title IV funds within the required time period. Repeat Finding: Yes, 2024-001. Recommendation: We recommend the District continue to enhance and consistently apply R2T4 procedures by providing ongoing training to staff responsible for R2T4 calculations and by continuing with additional reviews and quality control measures to ensure accuracy and compliance. Views of Responsible Officials: Management concurs with the finding.