Finding Text
Criteria
According to 34 CFR 668.22(e)(4):
Total amount of unearned title IV assistance to be returned. The unearned amount of title IV assistance to be returned is calculated by subtracting the amount of title IV assistance earned by the student as calculated under paragraph (e)(1) of this section from the amount of title IV aid that was disbursed to the student as of the date of the institution's determination that the student withdrew.
Condition
The Financial Aid Office is responsible for completing the Return of Title IV calculation to determine how much Title IV aid the student earned and how much must be returned to the Department of Education. Once the Return of Title IV calculation is completed, the College is responsible for adjusting the student’s billing statement and returning unearned Title IV funds through the U.S. Department of Education’s Grant Management System (“G5”). The College has 45 days from the date they determined the student withdrew to return any unearned portions of Title IV funds. During our testing, we noted 2 students, out of a sample of 10, where the aid returned was different than the amount correctly calculated on the Return to Title IV (“R2T4”) form.
Cause
The College did not ensure that the regulations were met in regard to refunding Title IV funds when calculating the amount of aid to be returned.
Effect
The College did not return the correct amount of Title IV funds to the Department of Education.
Questioned Costs
$16.18
Perspective
Our sample was not, and was not intended to be, statistically valid. Of the 10 students selected for testing, 2 students, or 20% of our sample, had the incorrect amount of Title IV funds returned.
Identification as a Repeat Finding, if applicable
Not applicable
Recommendation
The College should review their current policies and procedures to ensure the amount of federal aid returned agrees with the amount calculated on the R2T4 form.
View of Responsible Officials
The College agrees with the finding and has implemented the corrective action plan listed within the management corrective action plan section of this report