Finding Text
Return of Title IV (R2T4) Calculations Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268 Federal Direct Student Loans and 84.063 Federal Pell Grants Federal Award Identification #: 2024-2025 Financial Aid Year Condition: There was one incorrect calculation of a post withdrawal disbursement for a student that withdrew during the term. Two other students had the calculation performed correctly but an inaccurate amount returned. Criteria: 34 CFR 668.22 Questioned Costs: $32 Context: Out of 10 students, one student had an incorrect post withdrawal disbursement made, resulting in $32 more Pell disbursed to the student than was calculated. Two students had the correct calculations and the initial return on the student account did not match the calculation. Of these two, one was caught internally by the review process and corrected within the year, and one resulted in $26 of unsubsidized loans returned to the government that should not have been returned. Because the dollar amounts are small, the error rate is high, and this was a prior year finding this is classified as a significant deficiency. These students were corrected during the audit process. Cause: For the student with the post withdrawal disbursement, the calculation was done correctly, but the amount disbursed was $32 more than the calculation indicated, resulting in a required return to the government. One student had the correct calculation done but the incorrect amount returned which was noted at the end of the fall semester and corrected, returning an additional $96 of Pell. One student inadvertently returned the amount that was to be kept and resulted in $26 more being returned to the government than should have been. Effect: Incorrect amounts of federal funding were returned. Identification as repeat finding, if applicable: Yes, 2024-002 Recommendation: We recommend the University add a step to verify attendance began at least half time for loan eligibility. We further recommend the University double check the amounts returned match the calculations. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.