Finding Text
Finding number: 2024-001
Federal agency: U.S. Department of Education
Programs: Student Financial Assistance Cluster
AL #: 84.063 and 84.268
Award year: 2024
Criteria
According to 34 CFR 668.22(e):
When a recipient of title IV grant or loan assistance withdraws from an institution during a
payment period or period of enrollment in which the recipient began attendance, the institution
must determine the amount of title IV grant or loan assistance that the student earned as of the
student's withdrawal date equal to the percentage of the payment period or period of enrollment
that the student completed as of the student's withdrawal date, if this date occurs on or before -
(A) Completion of 60 percent of the payment period or period of enrollment for a program that is
measured in credit hours; or (B) Sixty percent of the clock hours scheduled to be completed for
the payment period or period of enrollment for a program that is measured in clock hours.
Condition
Federal regulations state that when a recipient of Title IV funds withdraws from an institution
during a payment period or period of enrollment in which the recipient began attendance, the
institution should determine the proper amount of Title IV funds to be refunded as of the
recipient’s withdrawal date. Once a recipient’s withdrawal date is determined, an institution
should complete a Return of Title IV (“R2T4”) calculation. The R2T4 is used to calculate the
percentage of the payment period or period of enrollment completed, establish the amount of
Title IV funds earned by the recipient, and determine the amount required to be returned to the
Department of Education. During our testing, we noted 2 students, out of a sample of 40, where
the Return of Title IV calculation was calculated incorrectly.
SALEM STATE UNIVERSITY
(an Agency of the Commonwealth of Massachusetts)
Schedule of Findings and Questioned Costs
Year Ended June 30, 2024
Cause
The University has policies and procedures in place to perform this calculation for all students
who withdraw. However, in the above instances when completing the R2T4 calculation, the
University made calculation errors with one student having the incorrect number of earned days
in the semester and the second student having the incorrect amount of disbursed aid used in their
R2T4 calculation.
Effect
The University calculated the student’s percentage of earned aid incorrectly which resulted in an
incorrect amount of Title IV funds returned to the Department of Education.
Questioned Costs
$192
Perspective
Our sample was not, and was not intended to be, statistically valid. Of the 40 students selected
for testing, 2 students, or 5% of our sample, had returns of Title IV funds that were
miscalculated.
Identification as a Repeat Finding, if applicable
Not applicable
Recommendation
The University should implement a formal review process of the Return of Title IV calculations
to ensure an accurate calculation is made.
View of Responsible Officials
The University agrees with the finding. All questioned costs were returned by the University in
October 2024.