Finding Text
Inaccurate and Untimely Returns of Title IV Funds (R2T4) Material Weakness
DEPARTMENT OF EDUCATION
ALN #: 84.268, 84.063 and 84.007
Federal Award Identification #: 2023-2024 Award Year
Condition: When students withdrew either officially or unofficially, the University did not always return unearned Title IV aid timely and return calculations were not done correctly consistently. Additionally, the University was not able to provide support of academic activity for some distance education students who had no passing grades to determine if they began attendance.
Criteria: 34 CFR 668.22
Questioned Costs: $18,809
Context: Out of 22 students tested, 8 total students had errors:
• 3 students had late returns totaling $7,776 in FDL and Pell.
• 6 students had incorrect calculations resulting in $1,568 in FDL and Pell being under-returned and $76 in FDL being over-returned.
• 3 distance education students did not have records of academic activity retained by the University. These students received $9,465 in FDL and Pell.
These were not corrected during the audit.
Cause: Misunderstanding of modular withdrawal R2T4 calculations. Additionally, the University switched systems used to administer distance education programs.
Effect: Return of Title IV funds were not performed accurately and timely.
Identification as repeat finding, if applicable: 2023-002
Recommendation: We recommend the University perform additional training on R2T4 regulations and implement a second review on R2T4 calculations performed. We also recommend the University retain academic activity for all distance education students without passing grades.
Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.