Finding Text
Information on the Federal Program: Student Financial Assistance Programs - CFDA 84.063 –
Federal Pell Grant Program; CFDA 84.007 – Federal Supplemental Educational Opportunity
Grant Program; CFDA 84.268 – Federal Direct Student Loan. United States of Department of
Education
Compliance Requirements: Special Tests and Provisions – Return of Title IV Funds
Type of Finding: Significant deficiency.
Criteria: If a recipient of Title IV grant or loan funds withdraws from a school after beginning
attendance, the school must perform a Return of Title IV (R2T4) calculation to determine the
amount of Title IV assistance earned by the student.
Condition: For each student in the sample selection of Title IV students who withdrew, dropped
out, or never began attendance during the audit period and for whom a refund calculation was
required to be made, we reviewed the applicable student information as well as the completed
Return of Title IV Aid Worksheet.
Questioned Costs: $3,309
Context:
One student did not have a R2T4 calculation performed despite withdrawing prior to the
60 percent point of the semester. This student received all F's for the semester and the
date of last attendance was prior to completing 60% of the semester.
One student had the wrong withdrawal date used in performing the R2T4 calculation.
TVCC used 5/9/23 instead of the official withdrawal date of 3/9/2023 as noted on the
student’s transcript.
Loans were incorrectly awarded to one student who no longer attended the college.
Student withdrew from college 9/12/23 and loan awards were still disbursed to Student
on 9/28/23. The financial aid office completed the R2T4 calculation after the check was
received from the student.
Effect or Potential Effect: Return of Title IV refunds were not properly calculated or performed.
Cause: Internal control process failure.
Repeat Finding: No
Recommendation: The Financial Aid Office should implement an internal control
process/procedure to ensure that all students’ that withdraw, drop out, or never began attendance
are considered in the R2T4 calculation for possible refund to DOE and ensure that no funds are
disbursed after withdrawal date.
Views of Responsible Official:
We agree with this finding and recommendation. Please see the attached action plan related to
this finding in this report.