Finding Text
FINDING 2024-001 – Special Tests and Provisions – Return of Title IV Funds – Significant
Deficiency in Internal Controls Over Compliance (See table in "Schedule of Findings and Questioned Costs.") Criteria: The regulations 34 CFR 668.22 notes when a recipient of Title IV grant or loan funds withdraws
from a school after beginning attendance, the University must perform an R2T4 calculation to determine
the amount of Title IV aid earned by the student. If the amount disbursed to the student is greater than the
amount the student earned, the unearned funds must be returned. Additionally, there are specified
communications required to be given to the student by the school per 34 CFR 668.22(3)(a).
Condition/context: We selected a sample of 22 students out of a population of 168 that were identified
by the University as having received some federal assistance and withdrew from the University during the
year under audit. We believe this to be a representative sample of the population. We found one student
had dropped all Spring 2024 courses during the beginning of the term but an R2T4 calculation was not
performed when the University determined the withdraw on January 12, 2024. As there was no R2T4
calculation performed in January 2024, the University did not communicate timely to the student or return
funds within the required time period. The University communicated to the student five months later to
begin the return process.
Questioned costs: No questioned costs were identified as part of this finding.
Cause: The R2T4 calculation was not completed within 30 days of the date of withdraw due to ineffective
and incorrect tracking of the student’s courseload changes. Effect: The lack of an R2T4 calculation being performed when the University became aware of the student’s withdraw caused delay in returning federal funds and required communications to the student.
Repeat finding: This is not a repeat finding.
Recommendation: We recommend the University ensure controls in place are followed and monitored to
ensure R2T4 calculations are performed and reviewed timely.
Views of responsible officials: Management agrees with the finding. A corrective action plan has been
created by management and is included in the following section.