Finding Text
Federal Agency: U.S. Department of Education
Federal Program Name: Federal Supplemental Educational Opportunity Grants; Federal Work Study Program; Federal Pell Grant Program; Federal Direct Student Loans
Assistance Listing Number: 84.007; 84.033; 84.063; 84.268
Federal Award Identification Number and Year: P007A242562; P033A242562; P063P241812; P063Q231812; P268K251812 - 2024
Award Period: July 01, 2023 - June 30, 2024
Type of Finding:
• Significant Deficiency in Internal Control over Compliance, Other Matters
Criteria or specific requirement: Once a student’s withdrawal date is determined, a school needs to calculate the percentage of the payment period of enrollment completed. Institutionally scheduled breaks of five or more consecutive days are excluded from the R2T4 calculation as periods of nonattendance and, therefore, do not affect the calculation of the amount of Federal Student Aid earned (34 CFR 668.22(f)(2)(i)). The Code of Federal Regulations, 34 CFR 668.22 defines the last date of attendance for schools that are required to take attendance and those that are not required.
Condition: During our testing, we observed that the University's process failed to properly account for scheduled breaks in the R2T4 calculations for two students. Additionally, an incorrect withdrawal date was used in one student's R2T4 calculation.
Questioned costs: $3,370
Context: During our testing of 22 students, we identified two instances where the University's R2T4 calculations did not correctly factor in scheduled breaks. Additionally, one student's R2T4 calculation was performed using an incorrect withdrawal date.
Cause: The University did not have a review process in place to ensure scheduled breaks were properly factored into the R2T4 calculations or that the correct withdrawal date was used.
Effect: The University is not performing an accurate R2T4 calculation in accordance with Department of Education guidelines.
Repeat finding: No.
Recommendation: We recommend that the University review the R2T4 requirements and implement procedures to ensure that scheduled breaks and correct withdrawal dates are properly factored into the calculations.
Views of responsible officials: There is no disagreement with the audit finding.