Finding Text
2022 ? 002: Return to Title VFederal Agency: Department of EducationFederal Program: Student Federal Assistance ClusterAssistance Listing Number: VariousAward Period: July 1, 2021 to June 30, 2022Type of Finding: Significant Deficiency in Internal Control over Compliance and NoncomplianceCriteria: According to 34 CFR Section 668.173 (b), the institutional portion of unearned aid must bereturned to the appropriate Title IV, HEA program or Federal Family Education Loan (?FFEL?) lender nolater than 45 days after the date of the institution?s determination that the student withdrew.Furthermore, the institution must determine the amount of Title IV grant or loan assistance that thestudent earned as of the student?s withdrawal date. The Compliance Supplement issued by the Officeof Management and Budget requires auditors to review the return of Title IV fundsdeterminations/calculations for conformity with Title IV requirements. Furthermore, according to 34 CFR668.22, all grant funds relating to post-withdrawal disbursements that are not disbursed to the student?saccount, must be disbursed to the student no later than 180 days after the date of the institution?sdetermination that the student withdrew.Condition: The audit identified the following conditions:1) The institutional portion of unearned aid was not returned to the Department of Education within 45days. This was noted for 3 out of 40 samples tested, which is a statistically valid sample.2) The return of funds was not properly calculated by the College. This was noted for 2 out of 40samples, which is a statistically valid sample.Questioned Costs: NoneContext: The District disbursed $26,553,987 in Title IV awards during fiscal year 2021-22.Cause: The Colleges? internal controls did not ensure compliance with the applicable Title IVregulations.Effect: The cause identified resulted in noncompliance with Title IV regulations.Repeat Finding: This was not a finding in the prior year.Recommendation: We recommend that the Colleges improve the existing procedures and controls toensure compliance with the aforementioned criteria. We also recommend an additional level of reviewis added in the process to ensure completed Return to Title IV calculations are properly completed.Views of Responsible Officials and Planned Corrective Actions: Please refer to the attachedCorrective Action Plan.