Finding Text
Federal Agency: U.S. Department of Education Federal Program Title: Student Financial Aid Assistance Listing Number: Student Financial Aid Cluster Award Period: September 1, 2024 to August 31, 2025 Type of Finding: • Material Weakness in Internal Control Over Compliance • Other Matters Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 668.22(f)(2)(i), the total number of calendar days in a payment period or period of enrollment includes all days that the student was scheduled to complete, except that scheduled breaks of at least five consecutive days are excluded from the total number of calendar days in a payment period or period of enrollment and the number of calendar days completed in that period. Condition: During our testing of Return of Title IV (R2T4) calculations, we noted the District had used an incorrect percentage of days attended causing the District to incorrectly calculate the return of Title IV funds. Questioned Costs: $5,372 Context: Federal regulations require institutions to calculate and return unearned Title IV funds when a student withdraws. The calculation is based on the percentage of days attended, and funds must be returned to the COD system within 45 days of completing the R2T4 calculation. These rules ensure compliance with U.S. Department of Education requirements and protect federal funds. Cause: The District did not have a process in place to correctly calculate the students’ percentage of days attended. Effect or Potential Effect of Finding: The District is not completing accurate R2T4 calculations as defined by the regulations. Failure to return funds timely may result in noncompliance with federal regulations, potential liabilities, and risk of loss of eligibility for Title IV programs. Repeat Finding: No. Recommendation: We recommend the District review the R2T4 requirements and implement procedures to ensure that calculations use the correct period of enrollment. Views of Responsible Officials: There is no disagreement with the audit finding.