Finding Text
Incorrect and Untimely Returns of Title IV Funds (R2T4) Calculations
Material Weakness
DEPARTMENT OF EDUCATION
ALN #: 84.268, 84.063, 84.007
Federal Award Identification #: 2023-2024 Award Year
Condition: Title IV funds were not always returned accurately or timely when students withdrew during a term.
Criteria: 34 CFR 668.22
Questioned Costs: $2,504
Context: Out of 11 students, 5 students who withdrew during the audit period tested had a total of $29,006 Federal Direct Loans (FDL) and $1,110 of Pell returned late, ranging from 39 to 154 days late. 7 of 11 withdrawals tested had R2T4 calculation errors and/or incorrect returns of aid. 4 students had $8,861 of FDL and 1 had $1,849 of Pell over returned, while 3 students had $2,380 of FDL and $124 of Pell funds under returned.
Cause: Staffing issues and turnover. Incorrect calendar set up leading to 4 miscalculations and 2 errors were caused by using the incorrect calendar dates. Incorrect inputs into the R2T4 calculation led to the other error.
Effect: Incorrect amounts of federal funding were returned. Returned of Title IV funds were not performed timely.
Identification as repeat finding, if applicable: n/a
Recommendation: We recommend an individual with appropriate knowledge of R2T4 calculations review each system set up and recalculate the first few withdrawals manually to ensure the system is functioning as intended. We also recommend that returns be verified once they post on the student account to verify they match what is calculated on the R2T4 calculation.
Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.