Finding Text
Inaccurate and Untimely Return of Title IV Funds (R2T4) Material Weakness
DEPARTMENT OF EDUCATION
ALN #: 84.268, 84.063
Federal Award Identification #: 2023-2024 Award Year
Condition: When students withdrew either officially or unofficially, the College did not always return unearned Title IV aid timely or accurately.
Criteria: 34 CFR 668.22
Questioned Costs: $3,655
Context: Out of 15 students tested, 5 modular students who withdrew during the audit period tested had funds returned late. All initial calculations were performed timely, however the returns were made 31 to 378 days late. Two of these returns were corrected as part of the audit process. The first student had $686 of Pell returned; the second student had a correction in the return amount - this was corrected by the College for a total of $2,969 in unsubsidized loans returned during the audit.
Cause: All initial R2T4 calculations were performed timely by the third party administrator, however there was an oversight by the College when applying the return to the student account.
Effect: Noncompliance with new R2T4 regulations regarding withdrawals from modular programs.
Identification as repeat finding, if applicable: 2023-004
Recommendation: We recommend that the financial aid office work closely with their third party administrator and student accounts office to ensure that funds required to be returned as part of the R2T4 process are being processed timely.
Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.