Audit 383253

Inaccurate Return of Title IV Funds (R2T4) Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268 Federal Direct Loans and 84.063 Federal Pell Grants Federal Award Identification #: 2024-2025 Financial Aid Year Condition: When students withdrew either officially or unofficially, the University did not always calculate R2T4s accurately. Criteria: 34 CFR 668.22 Questioned Costs: $0 Context: Out of 15 withdrawals tested, 2 students had incorrect R2T4 calculations. 1 nontraditional student had incorrect institutional charges considered in the R2T4 calculation and an incorrect Pell amount initially included in the return calculation. This caused an over-return of $1,579 in FDL as Pell ended up being corrected. 1 modular student did not have both modules the student attended included in the total days used in the R2T4 calculation. When both modules were included, the student had completed past 60%, therefore, a return was not necessary. This caused an over-return of $534 in FDL. Cause: This was an oversight by the University. Effect: Incorrect amount of unearned Title IV funds returned. Identification as repeat finding, if applicable: See Finding 2024-003 Recommendation: We recommend an individual in financial aid with the appropriate level of experience periodically review R2T4 calculations and returns to help ensure that internal controls over such process can operate effectively and achieve compliance. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.