Finding Text
Return of Title IV (R2T4) Calculations Significant Deficiency
DEPARTMENT OF EDUCATION
ALN #: 84.268, 84.063
Federal Award Identification #: 2023-2024 Award Year
Condition: There were four incorrect calculations of returned funds for students that withdrew during the term due to incorrect calendar setups and late notifications of students not attending, resulting in late returns.
Criteria: 34 CFR 668.22
Questioned Costs: $245
Context: Out of 8 students, two students who withdrew during the audit period tested had funds returned late due to late notifications of non-attendance. Three students had incorrect calculations due to incorrect calendar set ups and needing to recalculate pell for classes the students began attendance in prior to performing the return calculation. This resulted in Pell owed back to the government of $78 and FDL owed back of $167 at fiscal year-end. Additionally, one student was not offered a post withdrawal disbursement of $292 of loans. Because the dollar amounts are small and the error rate is higher, this is classified as a significant deficiency. All students were corrected during the audit process.
Cause: The calendar setups for fall 2023 were not set up properly. Additionally, notifications of nonattendance were not sent to financial aid timely to perform return calculations.
Effect: Incorrect amount of unearned Title IV funds returned and lack of offering a post withdrawal disbursement.
Identification as repeat finding, if applicable: Yes, 2023-002, 2022-001, 2021-003, 2020-006, 2019-005, and 2018-005.
Recommendation: We recommend the University review the calendar set ups and ensure the proper number of days are used in the calculations. Additionally, we recommend the University implement a way to notify financial aid timely when students are not attending so a return calculation can be done timely.
Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.