Finding Text
2022-002 Department of Education Student Financial Aid Cluster CFDA # 84.268 ? Federal Direct Student Loans 2021-2022 Award Year Special Tests and Provisions ? Return of Title IV Funds Significant Deficiency in Internal Controls over Compliance Criteria: 34 CFR 668.22 sets forth the criteria for timely withdrawal determination requirement for return of Title IV funds. Condition: 1 of 30 students selected for testing had a withdrawal determination date outside of the 30 day requirement. For a student who withdraws without providing notification from a school that is not required to take attendance, the school must determine the withdrawal date no later than 30 days after the end of the earlier of 1) the payment period or the period of enrollment, 2) the academic year, or 3) the student?s educational program. Cause: Student was part of the agriculture program and was intended to finish the semester with an internship. LATC was notified outside of the 30-day requirement by the employer that the internship did not take place. Effect: The error in withdrawal determination resulted in determination dates outside of the required timeframe which will result in return of direct loans outside of the required timeframe. Questioned Costs: None. Context/Sampling: A nonstatistical sample of 30 students with a withdrawal status out of 146 students with a withdrawal status were selected for testing of return of Title IV Funds requirements. Repeat Finding from Prior Year(s): No. Recommendation: We recommend the financial aid and registrar?s offices implement controls to verify intended internships beginning during an in-progress semester have, in fact, started. We also recommend a follow up within 20 days of semester end to ensure internships were completed. Views of Responsible Officials: Management agrees with the finding.