Finding Text
U.S. Department of Education, Student Financial Aid Cluster – Assistance Listing # 84.033, 84.063, 84.007, 84.268 – Return of Title IV Funds (Significant Deficiency). Condition: The University failed to return Title VI funds to the Department of Education within 45 days of student’s date of determination. Criteria: Return of Title IV funds are required to be deposited or transferred into the SFA account or electronic fund transfers initiated to the Department of Education as soon as possible, but no later than 45 days after the date the institution determines that the student withdrew in accordance with 34 CFR Section 668.173(b). Cause: Controls are not functioning properly. Effect: Funds were not timely returned to students or federal agencies as required. Context: From a population of 129 students that withdrew officially or unofficially during a term, we tested 12 students and noted that the R2T4 calculations were required for nine students. Of the nine students, R2T4 calculations were prepared untimely for six students, resulting in a late return of Title IV funds. Repeat Finding from Prior Year: Not a repeat finding. Recommendation: We recommend procedures are put in place to ensure R2T4 calculations are performed timely following the University’s date of determination.