Finding Text
Inaccurate and Untimely Return of Title IV Funds (R2T4) Significant Deficiency
DEPARTMENT OF EDUCATION
ALN #: 84.268, 84.063
Federal Award Identification #: 2023-2024 Award Year
Condition: R2T4’s were not always completed accurately or timely.
Criteria: 34 CFR 668.22
Questioned Costs: $0
Context: Out of 10 withdrawals tested, 1 R2T4 was modular withdrawal was not properly calculated based on the 49% exemption, resulting in $507 of Pell being returned when the student actually earned the aid. 1 out of 10 withdrawals tested had $1,300 in Pell returned 8 days late.
Cause: Both issues were in the Spring 2024 term when there was staffing turnover and challenges with the 2024-2025 FASFA rollout that required substantial staff time.
Effect: Incorrect amounts of federal funding were returned. Unearned funds to return were not made within 45 days after the date of determination.
Identification as repeat finding, if applicable: N/A
Recommendation: We recommend an individual with appropriate return calculation knowledge review each calendar set up and ensure scheduled breaks are properly included in the calendar to align with regulations. Due to the complexity of the nonstandard term modular program R2T4 calculations, we recommend that a second review and approval of the calculation be completed as part of the R2T4 process.
Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.