Finding Text
Assistance Listing Number, Federal Agency, and Program Name - U.S. Department of Education, Student Financial Assistance Cluster - ALN 84.268, Federal Direct Student Loans; ALN 84.063, Federal Pell Grant Program; ALN 84.007, Federal Supplemental Education Opportunity Grants
Federal Award Identification Number and Year - P268K241658; P063P231658; P007A232092
Pass through Entity - N/A
Finding Type - Significant deficiency
Repeat Finding - No
Criteria - If a recipient of Title IV grant or loan funds withdraws from a school after beginning attendance but before he or she has attended 60 percent of the scheduled length of the semester, the school must perform a return of Title IV funds (R2T4) calculation. If the amount disbursed to the student is greater than the amount the student earned, the unearned funds must be returned. A school must return unearned funds for which it is responsible no later than 45 days from the determination of a student's withdrawal (30 days if never attended) (34 CFR 668.22(j)(1)).
Condition - The University did not return funds within the 45 day time period for a certain student.
Questioned Costs - None
Identification of How Questioned Costs Were Computed - N/A
Context - Of the nine students tested, there was one student who had an R2T4 calculation, and funds were not returned within the 45-day time period.
Cause and Effect - The University did not have a control in place to ensure that all R2T4 returns were processed in the required 45-day window (or 30 days if never attended); as a result, the refund was returned late.
Recommendation - The University should implement controls to ensure that student R2T4 returns are made within the 45-day window (or 30 days if never attended).
Views of Responsible Officials and Corrective Action Plan - This was an isolated incident and corrected immediately. The University has taken additional steps to ensure full compliance in the future and considers the corrective action plan fully implemented.