Finding Text
Special Tests and Provisions - Return to Title IV
Program Name: Student Financial Assistance Cluster
Federal Assistance Listing Number: 84.007, 84.033, 84.063, and 84.268
Federal Agency: U.S. Department of Education (ED)
Direct funded by the U.S. Department of Education (ED)
Criteria or Specific Requirements
34 CFR section 668.173(b)
Returns of Title IV (R2T4) funds are required to be deposited or transferred into the Student Financial Aid (SFA) account or electronic fund transfers initiated to ED as soon as possible, but no later than 45 days after the date the institution determines that the student withdrew. Returns by check are late if the check is issued more than 45 days after the institution determined the student withdrew or the date on the canceled check shows the check was endorsed more than 60 days after the date the institution determined that the student withdrew.
Condition
Significant Deficiency in Internal Control over Compliance – During testing over Return to Title IV requirements, 7 of 60 Return to Title IV calculations did not have funds returned within the 45-day requirement.
Questioned Costs
There are no questioned costs associated with the condition identified. All funds were returned, however, not within the 45 day requirement.
Context
We tested a non-statistical sample of 60 R2T4 calculations of a total 277 calculations performed by the District during the 2023 aid year.
Effect
Without proper monitoring of the timing of student withdrawals and calculations of R2T4, the District risks noncompliance with the above referenced criteria.
Cause
The District did not implement procedures to ensure that the return to Title IV funds were returned in a timely manner.
Recommendation
The District should establish effective controls to ensure the return of funds occurs within 45 days from the date the institution determines the student withdrew from all classes.