Finding Text
Untimely and Inaccurate Returns of Title IV Funds (R2T4) Significant Deficiency
DEPARTMENT OF EDUCATION
ALN #: 84.268, 84.063
Federal Award Identification #: 2023-2024 Award Year
Condition: The University did not always calculate nontraditional students’ unearned Title IV funds correctly or return funds timely.
Criteria: 34 CFR 668.22
Questioned Costs: $184
Context: Out of 9 withdrawals tested, 3 modular unofficial withdrawals had inaccurate R2T4 calculations. Two of those inaccurate R2T4s were also late returns totaling $4,057 ranging 12 to 18 days late. One student did not have the week break between modules excluded from the total days used in the R2T4 calculation ($49 FDL over returned). One student, who was tested for the Fall and Spring semesters, did not have the correct tuition cost included in both the Fall and Spring R2T4 calculations ($184 FDL under returned in the Fall, $210 FDL over returned in the Spring). These were not corrected during the audit.
Cause: There was transition in the financial aid office in the middle of the 2023-2024 award year.
Effect: Incorrect amounts of unearned Title IV funds were returned and returns were not made timely.
Identification as repeat finding, if applicable: Not applicable.
Recommendation: We recommend an individual in financial aid with the appropriate level of experience periodically review modular students’ R2T4 calculations and returns to help ensure that internal controls over such process can operate effectively and achieve compliance. We also recommend the financial aid office run a 0-credit report at the end of each term for modular students to ensure that all unofficial withdrawals requiring returns are returned timely.
Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.