Finding Text
2022-002 Direct Programs ? Department of Education FAL# 84.063, 84.007, 84.268, 84.033 Student Financial Assistance Cluster Special Test and Provisions: Return to Title IV Significant Deficiency in Internal Control Over Compliance Criteria: 34 CFR Section 668.22 states that 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. Condition: During our testing of compliance with Return of Title IV Funds (R2T4), there was 1 instance out of 38 where the District calculated the incorrect amount to be returned to the Department of Education (ED). Cause: The incorrect period of enrollment was used. This error was the result of a manual calculation that was performed for the student, instead of relying on the automatic system the District uses to calculate R2T4 amounts. Effect: The incorrect amount was calculated for the return of Title IV calculation. The District returned the incorrect amount of aid to ED. Questioned Costs: None reported. Context/Sampling: A nonstatistical sample of 38 students out of 191 who withdrew from the term and were considered for R2T4. Repeat Finding from Prior Year: No. Recommendation: Management of the District should review its process over manual R2T4 calculations to ensure that any errors in manual calculations are caught during the review process. Views of Responsible Officials: The District agrees with the finding.