Finding Text
Federal Agency: Department of Education
Federal Program Title: Student Financial Assistance Cluster
ALN Numbers: Various
Award Period: July 1, 2023 through June 30, 2024
Type of Finding:
• Significant Deficiency in Internal Control Over Compliance
• Other Matters
Criteria or Specific Requirement: The Code of Federal Regulations 34 CFR 668.22, states that when students withdraw from a school, institutions is required to determine earned and unearned portions of Title IV aid as of the date the student ceased attendance based on the amount of time the student spent in attendance. Up through the 60% point in each payment period or period of enrollment, a pro rate schedule is used to determine the amount of Title IV funds the students earned at the time of withdrawal. After the 60% point in the payment period or period of enrollment, a student has earned 100% of the Title IV funds the student was scheduled to receive during the period.
Condition: During our testing, for one out of 26 students, an R2T4 calculation was not performed even though they attended classes. All of their aid was returned; however, the student did earn a portion that was improperly returned to ED.
Questioned Costs: $527.25
Context: The University did not properly calculate R2T4's or timely return funds in all cases where it should have.
Cause: The University did not have proper procedures in place to correctly calculate and timely return appropriate funds.
Effect: Funds were not disbursed to students as they should have been.
Repeat Finding: No
Recommendation: We recommend that the University implement a formal review process as it relates to withdrawn students to ensure R2T4 calculations are being performed accurately and timely.
Views of Responsible Officials: There is no disagreement with the audit finding.