Finding Text
Student Financial Assistance Cluster Federal Supplemental Educational Opportunity Grants, ALN 84.007; Federal Work- Student Program, ALN 84.033; Federal Pell Grant Program, ALN 84.063; Federal Direct Student Loans, ALN 84.268 U. S. Department of Education, Program Year 2024-2025 Type of Finding – Material Weakness in Internal Control Over Compliance Criteria or Specific Requirement – Special Tests and Provisions – Return of Title IV Funds [34 CFR 668.22(a)(1) through (a)(5)]. Condition – The District did not properly calculate the total amount disbursed or to be isbursed due to an incorrect term date, which led to incorrect calculations of funds to be returned. Additionally, the District did not return funds in the required 45 day window. Cause – The District’s internal controls did not ensure accurate information was inputted into the calculation of returns and did not ensure return was made within the required timeframe. Additionally, no detective controls for supervisory review and approval of the calculations were performed to detect errors. Effect or Potential Effect – Incorrect amounts were returned to the Department of Education or disbursed to students. Also, returns were not made within the 45 day required timeline. Questioned Costs – $2,880 – ALN 84.063 Context – Out of a population of 385 students who withdrew during the 2024-2025 award year, a sample of 40 students was selected for testing. Our sample was not, and was not intended to be, statistically valid. Of the 40 students tested, 4 students’ calculations were incorrect due to the use of incorrect term dates by the institution and 7 students were returned after the 45 day requirement. Additionally, $2,880 calculated to be returned to the Department of Education was not returned. Identification as a Repeat Finding, if Applicable – Yes Recommendation – The District should ensure its process and internal controls are updated to ensure total days in the semester are calculated correctly and disbursements are made timely. Additionally, the related calculations should be subject to review and approval as a best practice. Views of Responsible Officials and Planned Corrective Actions – There is no disagreement with the audit finding. See corrective action plan.