Finding Text
Return of Title IV (R2T4) Calculations DEPARTMENT OF EDUCATION
ALN #: 84.268 and 84.063
Federal Award Identification #: 2021-2022 Financial Aid Year
Condition: The University returned Title IV funds for two modular student withdrawals that did not require funds to be returned based on the completion rate. Both students completed past the 49% required by the modular withdrawal regulations.
Criteria: 34 CFR 668.22
Questioned Costs: $-0-
Context: Out of 5 R2T4s tested, 1 student had $2,722 in federal direct loans and $249 in Pell grant returned and 1 student had $1,732 in subsidized federal direct loans and $633 in Pell grant returned although the students were eligible to retain their Title IV funds.
Cause: This was an oversight by the University due to the complexity of the new modular withdrawal regulations.
Effect: Noncompliance with new R2T4 regulations regarding withdrawals from modular programs.
Identification as repeat finding, if applicable: 2021-004
Recommendation: We recommend the University review and fully understand the modular withdrawal regulations and improve policies and procedures to follow these new regulations.
Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.