Finding Text
Federal Agency: Department of Education
Federal Program Title: Student Financial Assistance Cluster
Federal Assistance Listing Number: 84.268
Federal Award Identification Number and Year: N/A
Pass-Through Agency: N/A
Pass-Through Number: N/A
Award Period: June 1, 2023 – May 31, 2024
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 668.22(a)(2)(ii) states that in a program offered in modules, a student is not considered to have withdrawn if the student successfully completes one module that includes 49 percent or more of the number of days in the payment period, excluding scheduled breaks of five or more consecutive days and all days between modules.
Condition: During our testing, we noted a return of Title IV (R2T4) calculation was erroneously completely for a student that completed greater than 49% of a modular course. The student returned $925.74 of unsubsidized direct loans, but should not have done so.
Questioned Costs: $925
Context: During our testing, we noted a return of Title IV (R2T4) calculation was erroneously completely for a student that completed greater than 49% of a modular course. The student returned $925 of unsubsidized direct loans, but should not have done so.
Cause: The University used the proper inputs in the R2T4 calculation, but incorrectly concluded that the student had withdrawn and needed to return funds.
Effect: The University is not completing accurate R2T4 calculations as defined by the regulations.
Repeat Finding: No
Auditor’s Recommendation: We recommend the University review the R2T4 requirements and implement procedures to ensure the R2T4 calculations are completed timely and accurately.
Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with the audit finding.