Finding Text
Incorrect Return of Title IV (R2T4) Funds Calculations and Untimely Returns Significant Deficiency
DEPARTMENT OF EDUCATION
ALN #: 84.268 and 84.063
Federal Award Identification #: 2023-2024 Award Year
Condition: When students withdrew either officially or unofficially, the University did not always return unearned Title IV aid accurately and timely. Title IV funds disbursed were not always returned when students failed to begin attendance.
Criteria: 34 CFR 668.21 and 34 CFR 668.22
Questioned Costs: $5,217
Context: Out of 60 students tested, we noted 4 students who withdrew did not have a return completed accurately and timely. These 4 students in total had $1,510 of Pell and $2,388 of Federal Direct Loans under returned and included in questioned costs. 1 student of these 4 also had a Pell adjustment error for $925 that should have been returned prior to the R2T4 calculation. Out of 60 students tested, we also noted 1 online student that did not begin attendance and received a disbursement of $1,319 of Federal Direct Loans which should have been returned entirely and is included in questioned costs. The University has corrected some of these errors during the audit and during an ED program review.
Cause: This was an oversight by the University.
Effect: Return of Title IV funds calculations were not performed timely and a student who did not begin attendance was disbursed aid.
Identification as repeat finding, if applicable: 2023-001.
Recommendation: We recommend that the University continue to work on running zero credit reports at the end of each module or semester and that these reports provide all the necessary information for financial aid to complete R2T4’s accurately and timely. We also recommend that for online students, evidence of academic engagement be required prior to disbursing aid.
Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.