Finding Text
Return to Title IV Federal Agency: U.S. Department of Education Federal Program Name: Student Financial Aid Cluster Assistance Listing Number: 84.063 Federal Award Identification Number and Year: N/A Award Period: July 1, 2024 – June 30, 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: The Code of Federal Regulations, 34 CFR 668.22(h)(4)(ii) states within 30 days of the date of the institution's determination that the student withdrew, an institution must send a notice to any student who owes a title IV, HEA grant overpayment as a result of the student's withdrawal from the institution in order to recover the overpayment in accordance with paragraph (h)(4)(i) of this section. Condition: During our audit we noted instances where the District did not notify students that they were required to returns funds to the U.S. Department of Education based on the refund calculation performed by the District. The District did not return funds on behalf of the student. Questioned costs: None Context:. This was noted for 9 out of the 13 students tested. Cause: Post‑withdrawal disbursement notifications are not separately issued to students; the student’s signed award letter is relied upon as the formal notification of potential PWD eligibility The District did not have a process in place to notify all students when they were required to return funds to the Department of Education. Effect: Federal Funds may not have been returned to the Department of Education, and the student was not informed that they needed to do so. Repeat Finding: No Recommendation: We recommend that a process is put in place to ensure that all students are notified upon withdrawal they may be required to return federal award funds back to the Department of Education. Views of responsible officials: There is no disagreement with the audit finding.