Finding 1094300 (2024-002)

Inaccurate and Untimely Returns 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 University did not always return unearned Title IV aid timely and return calculations were not done correctly consistently. Criteria: 34 CFR 668.22 Questioned Costs: $134 Context: Out of 20 students tested, 4 students had late returns of $3,784 in Federal Direct Loans (FDL) and $2,777 in Pell ranging from 6 to 23 days late. Additionally, 6 students had incorrect R2T4 calculations. One student had an incorrect last date of attendance (LDA) used in the calculation causing an under-award of Pell ($55) in the student’s post-withdrawal disbursement (PWD). Four students had incorrect end dates used in their calculations, however it only impacted two students causing over-returns of Pell ($19). One student had incorrect total days in the payment period used in the calculation causing an under-return of federal direct loans ($134). These were corrected during the audit. Cause: There was turnover in the role of Associate Director for Online Studies midway through the academic year. Effect: Return of Title IV funds were not performed accurately and timely. Identification as repeat finding, if applicable: 2023-002 Recommendation: We recommend that the financial aid office work closely with the registrar office and their third-party administrator to ensure that R2T4’s are completed timely when students cease attendance during the term. We also recommend the University review calendar set-ups used for R2T4 calculations. Lastly, we recommend additional staff be allocated to the withdrawal process due to the high population of students (approx. 10%) who withdraw officially or unofficially. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.