Finding 47329 (2022-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-01-29
Audit: 47210
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: The District failed to return Title IV funds within the required 45-day timeframe after determining a student's withdrawal.
  • Impacted Requirements: Compliance with 34 CFR 668.173(b) regarding timely return of Title IV funds.
  • Recommended Follow-Up: Improve internal controls and procedures to ensure timely returns of Title IV funds.

Finding Text

2022-001 Special Tests and Provisions ? Return to Title IV Program Name: Student Financial Assistance Cluster Federal Financial Assistance Listing Numbers: 84.063, 84.033, 84.007, 84.268 Federal Agency: U.S. Department of Education (ED) Directed funded by the U.S. Department of Education (ED) Criteria or Specific Requirement 34 CFR 668.173(b): Return of Title IV funds are required to be deposited or transferred into the Student Financial Assistance (SFA) account or electronic funds transfer 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 cancelled 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 - The District's portion of the Return to Title IV funds were not returned within the 45-day requirement. Questioned Costs There are no questioned costs associated with this finding. Context The District performed approximately 20 Return to Title IV calculations related to direct loans during the 2021-2022 year. There was one instance out of thirty tested where the District's portion of the Return to Title IV funds were not returned within the 45-day requirement. Effect Without proper monitoring of Title IV returns, the District is at risk of noncompliance with the above referenced criteria. Cause The District's internal controls associated with the Return to Title IV procedures failed to ensure that all required funds were returned in a timely manner. Repeat Finding (Yes or No) No. Recommendation The District should strengthen procedures to ensure that the Return to Title IV funds are returned within 45 days from the date the District determines the student withdrew from all classes.

Categories

Student Financial Aid Special Tests & Provisions Matching / Level of Effort / Earmarking Subrecipient Monitoring Internal Control / Segregation of Duties Significant Deficiency

Other Findings in this Audit

  • 47325 2022-001
    Significant Deficiency
  • 47326 2022-002
    Significant Deficiency
  • 47327 2022-001
    Significant Deficiency
  • 47328 2022-002
    Significant Deficiency
  • 47330 2022-002
    Significant Deficiency
  • 47331 2022-001
    Significant Deficiency
  • 47332 2022-002
    Significant Deficiency
  • 623767 2022-001
    Significant Deficiency
  • 623768 2022-002
    Significant Deficiency
  • 623769 2022-001
    Significant Deficiency
  • 623770 2022-002
    Significant Deficiency
  • 623771 2022-001
    Significant Deficiency
  • 623772 2022-002
    Significant Deficiency
  • 623773 2022-001
    Significant Deficiency
  • 623774 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $6.23M
84.268 Federal Direct Student Loans $1.02M
21.027 Coronavirus State and Local Fiscal Recovery Funds $355,308
84.007 Federal Supplemental Educational Opportunity Grants $270,469
84.048 Career and Technical Education -- Basic Grants to States $112,915
84.033 Federal Work-Study Program $50,149
93.658 Foster Care_title IV-E $45,009
47.076 Education and Human Resources $37,692
93.558 Temporary Assistance for Needy Families $34,132
84.425 Education Stabilization Fund $14,614
12.600 Community Investment $8,337