Finding Text
Criteria or Specific Requirements
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.
34 CFR section 668.22(j)(2): For an institution that is not required to take attendance, the institution must determine the withdrawal date for a student who withdraws without providing notification to the institution no later than 30 days after the end of the earlier of the period of enrollment, the academic year in which the student withdrew or the educational program from which the student withdrew.
Condition
Significant Deficiency in Internal Control over Compliance – We noted the following noncompliance for Fresno City College:
1. Thirteen of the forty-five Return to Title IV calculations tested from Fresno City College’s portion of the Return to Title IV funds were not returned within the 45 day requirement.
2. Two of the forty-five Return to Title IV calculations tested were not performed within the thirty days of the end of the period of enrollment.
Questioned Costs
There are no questioned costs associated with this finding.
Context
There were approximately 1,400 Return to Title IV calculations completed for Fresno City College during the year ending June 30, 2023.
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 and calculations were performed 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. Additionally, the District should strengthen procedures to ensure the calculations are performed within the 30 days after the end of the period of enrollment.