Finding 412042 (2022-002)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-03-02

AI Summary

  • Core Issue: The College failed to return unearned Title IV aid within the required 45 days for 3 out of 40 sampled cases, and incorrectly calculated the return of funds in 2 cases.
  • Impacted Requirements: Noncompliance with 34 CFR Section 668.173(b) and 34 CFR 668.22 regarding timely return and calculation of Title IV funds.
  • Recommended Follow-Up: Enhance internal controls and procedures, including an additional review step, to ensure compliance with Title IV regulations.

Finding Text

2022 ? 002: Return to Title VFederal Agency: Department of EducationFederal Program: Student Federal Assistance ClusterAssistance Listing Number: VariousAward Period: July 1, 2021 to June 30, 2022Type of Finding: Significant Deficiency in Internal Control over Compliance and NoncomplianceCriteria: According to 34 CFR Section 668.173 (b), the institutional portion of unearned aid must bereturned to the appropriate Title IV, HEA program or Federal Family Education Loan (?FFEL?) lender nolater than 45 days after the date of the institution?s determination that the student withdrew.Furthermore, the institution must determine the amount of Title IV grant or loan assistance that thestudent earned as of the student?s withdrawal date. The Compliance Supplement issued by the Officeof Management and Budget requires auditors to review the return of Title IV fundsdeterminations/calculations for conformity with Title IV requirements. Furthermore, according to 34 CFR668.22, all grant funds relating to post-withdrawal disbursements that are not disbursed to the student?saccount, must be disbursed to the student no later than 180 days after the date of the institution?sdetermination that the student withdrew.Condition: The audit identified the following conditions:1) The institutional portion of unearned aid was not returned to the Department of Education within 45days. This was noted for 3 out of 40 samples tested, which is a statistically valid sample.2) The return of funds was not properly calculated by the College. This was noted for 2 out of 40samples, which is a statistically valid sample.Questioned Costs: NoneContext: The District disbursed $26,553,987 in Title IV awards during fiscal year 2021-22.Cause: The Colleges? internal controls did not ensure compliance with the applicable Title IVregulations.Effect: The cause identified resulted in noncompliance with Title IV regulations.Repeat Finding: This was not a finding in the prior year.Recommendation: We recommend that the Colleges improve the existing procedures and controls toensure compliance with the aforementioned criteria. We also recommend an additional level of reviewis added in the process to ensure completed Return to Title IV calculations are properly completed.Views of Responsible Officials and Planned Corrective Actions: Please refer to the attachedCorrective Action Plan.

Corrective Action Plan

2022 ? 002: Student Financial Aid Cluster - Return to Title V Exit Counseling ? Program NumberVariousRecommendation: We recommend that the Colleges improve the existing procedures and controls toensure compliance with the aforementioned criteria. We also recommend an additional level of reviewis added in the process to ensure completed Return to Title IV calculations are properly completed.Action taken in response to finding: The Financial Aid office is implementing the following steps toensure all R2T4 rules are met.Process: Create new report to monitor return of unearned aid to ED within 45 days of determination.Training: Staff involved with R2T4 processing will be provided time to undergo annual training by ED orNASFAA to ensure understanding of rules and regulations. Trainings by ED and NASFAA includepractice case studies to ensure correct application of R2T4 regulations.Quality Assurance: Two additional staff members have been assigned to help with R2T4 processing.One member to assist with the review of R2T4 calculations with the second staff member to help withthe return of aid on the accounting side. Also added to our R2T4 procedures, is management review ofR2T4 calculations per term.Name(s) of the contact person(s) responsible for corrective action: Chau Dao - Director ofFinancial AidPlanned completion date for corrective action plan: December 2023.

Categories

Student Financial Aid Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 412043 2022-003
    Significant Deficiency
  • 412044 2022-002
    Significant Deficiency
  • 412045 2022-003
    Significant Deficiency
  • 412046 2022-002
    Significant Deficiency
  • 412047 2022-003
    Significant Deficiency
  • 412048 2022-001
    Significant Deficiency
  • 412049 2022-001
    Significant Deficiency
  • 412050 2022-002
    Significant Deficiency
  • 988484 2022-002
    Significant Deficiency
  • 988485 2022-003
    Significant Deficiency
  • 988486 2022-002
    Significant Deficiency
  • 988487 2022-003
    Significant Deficiency
  • 988488 2022-002
    Significant Deficiency
  • 988489 2022-003
    Significant Deficiency
  • 988490 2022-001
    Significant Deficiency
  • 988491 2022-001
    Significant Deficiency
  • 988492 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.063 Pell Grant $23.45M
84.425 Covid-19 Heerf - Student Aid $19.23M
84.425 Covid-19 Heerf - Institutional $14.76M
84.268 Federal Direct Student Loans $1.32M
84.048 Perkins Title I-C (basic Grants to States) $803,421
84.033 Federal Work Study (fws) $548,762
59.037 Small Business Development Center (sbdc) $387,502
84.423 Community Partnerships for Teacher Pipeline $247,310
47.079 Replication of Corhort-Based Computer Science Bachelor's Degree Model $229,827
11.611 Manufacturing Extension Partnership $148,855
81.087 Clean Energy Smart Manufacturing Innovation Institute $145,556
84.063 Administrative Allowance - Pell $122,470
93.658 Foster and Kinship Care Education Program $122,289
17.285 Expanding Community College Apprenticeships Initiative (aacc Ecca) $120,517
59.037 Covid-19: Small Business Development Center (sbdc) $79,208
12.600 California Advanced Defense Ecosystems & National Consortia Effort (cadence) $48,397
84.007 Supplemental Educational Opportunities Grant (seog) $35,052
10.580 Calfresh Snap Outreach Program (cfo) $20,931
64.117 Veterans Education $11,384
47.076 Lsamp - Washignton Baltimore Hampton Roads Alliance $10,000
94.006 Americorps National Service Awards $3,337
93.558 Temporary Assistance for Needy Families (tanf) $1,000
47.070 Frontier Opportunities in Computing for Underrepresented Students $470