Finding Text
2024–003: Return of Title IV (R2T4) Calculations
Federal Agency: U.S. Department of Education
Federal Program Name: Federal Supplemental Educational Opportunity Grants; Federal Pell Grant Program; Federal Direct Student Loans; Teacher Education Assistance for College and Higher Education Grants
Assistance Listing Number: 84.007, 84.063, 84.268, 84.379
Federal Award Identification Number and Year: P007A243557, P063P242088, P063Q232088, P268K252088 - 2024; P379T232088 - 2023
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 students’ withdrawal date is determined, a school needs to calculate the percentage of the payment period or period of enrollment completed. Institutionally scheduled breaks of five or more consecutive days are excluded from the return of Title IV 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)).
Condition: During our testing, it was noted the College’s process did not ensure scheduled breaks were properly factored into the R2T4 calculations for the Spring 2024 term.
Questioned costs: $259.
Context: The College did not correctly factor in scheduled breaks to 5 of the 8 students tested. The College used 12 days of scheduled breaks but should have factored in 14 days in the Spring 2024 R2T4 calculations.
Cause: Management had a process in place for using the correct withdrawal date and number of days in the schedule break, but the process was not followed for 5 students.
Effect: The College did not complete an accurate calculation as defined by Federal regulations.
Repeat Finding: No
Recommendation: We recommend the College review the R2T4 requirements and implement procedures to ensure scheduled breaks are properly factored into the R2T4 calculations.
Views of responsible officials: There is no disagreement with the audit finding.