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.