Finding 960754 (2023-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-03-25
Audit: 297438
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: 7 out of 60 Return to Title IV calculations were not completed within the required 45-day timeframe.
  • Impacted Requirements: Compliance with 34 CFR section 668.173(b) regarding timely returns of Title IV funds.
  • Recommended Follow-up: Implement stronger controls to ensure funds are returned within the 45-day limit after a student withdrawal.

Finding Text

Special Tests and Provisions - Return to Title IV Program Name: Student Financial Assistance Cluster Federal Assistance Listing Number: 84.007, 84.033, 84.063, and 84.268 Federal Agency: U.S. Department of Education (ED) Direct funded by the U.S. Department of Education (ED) Criteria or Specific Requirements 34 CFR section 668.173(b) Returns of Title IV (R2T4) funds are required to be deposited or transferred into the Student Financial Aid (SFA) account or electronic fund transfers 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 canceled 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 – During testing over Return to Title IV requirements, 7 of 60 Return to Title IV calculations did not have funds returned within the 45-day requirement. Questioned Costs There are no questioned costs associated with the condition identified. All funds were returned, however, not within the 45 day requirement. Context We tested a non-statistical sample of 60 R2T4 calculations of a total 277 calculations performed by the District during the 2023 aid year. Effect Without proper monitoring of the timing of student withdrawals and calculations of R2T4, the District risks noncompliance with the above referenced criteria. Cause The District did not implement procedures to ensure that the return to Title IV funds were returned in a timely manner. Recommendation The District should establish effective controls to ensure the return of funds occurs within 45 days from the date the institution determines the student withdrew from all classes.

Categories

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

Other Findings in this Audit

  • 384306 2023-001
    Significant Deficiency
  • 384307 2023-002
    Significant Deficiency
  • 384308 2023-001
    Significant Deficiency
  • 384309 2023-002
    Significant Deficiency
  • 384310 2023-001
    Significant Deficiency
  • 384311 2023-002
    Significant Deficiency
  • 384312 2023-001
    Significant Deficiency
  • 384313 2023-002
    Significant Deficiency
  • 384314 2023-001
    Significant Deficiency
  • 384315 2023-002
    Significant Deficiency
  • 384316 2023-001
    Significant Deficiency
  • 384317 2023-002
    Significant Deficiency
  • 960748 2023-001
    Significant Deficiency
  • 960749 2023-002
    Significant Deficiency
  • 960750 2023-001
    Significant Deficiency
  • 960751 2023-002
    Significant Deficiency
  • 960752 2023-001
    Significant Deficiency
  • 960753 2023-002
    Significant Deficiency
  • 960755 2023-002
    Significant Deficiency
  • 960756 2023-001
    Significant Deficiency
  • 960757 2023-002
    Significant Deficiency
  • 960758 2023-001
    Significant Deficiency
  • 960759 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.59M
84.048 Career and Technical Education -- Basic Grants to States $664,203
84.268 Federal Direct Student Loans $493,086
84.047 Trio_upward Bound $454,252
84.042 Trio_student Support Services $352,143
84.044 Trio_talent Search $294,129
84.126 Rehabilitation Services_vocational Rehabilitation Grants to States $234,206
84.007 Federal Supplemental Educational Opportunity Grants $200,011
84.033 Federal Work-Study Program $167,251
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $157,947
84.425 Education Stabilization Fund $152,389
47.076 Education and Human Resources $101,192
84.002 Adult Education - Basic Grants to States $64,040
93.558 Temporary Assistance for Needy Families $51,583
10.558 Child and Adult Care Food Program $48,598
84.335 Child Care Access Means Parents in School $24,545
93.575 Child Care and Development Block Grant $20,788
84.063 Federal Pell Grant Program $3,994
64.116 Vocational Rehabilitation for Disabled Veterans $3,559