Finding Text
Finding 2025-001: Significant Deficiency – Return of Title IV funds Federal Program: Student Financial Assistance Cluster, Federal Direct Student Loans Federal Agency: U.S. Department of Education Pass-Through Entity: Not Applicable Assistance Listing Number (ALN): 84.268 Federal Award Number: P268K251780 Federal Award Year: June 30, 2025 Criteria: Title IV regulations (34 CFR 668.22) require the College to return the unearned portion of grants or loans to the Title IV program within 45 days after a student withdraws. Condition/Context: Of the 16 students tested in the sample, one student did not have an R2T4 completed during Summer 2024. Subsequent to the auditor identifying this exception in July 2025 the University completed the calculation and returned the required funds. The auditor reviewed the calculation and student's account statement confirming that corrective action was taken. The sample was not a statistically valid sample. Cause: The University's controls surrounding return of Title IV calculations did not appropriately ensure the return was completed timely. Effect: The unearned funds were not returned to the U.S. Department of Education. Questioned Costs: A total of $3,805 in Federal Direct Loans assistance listing number 84.268. Recommendation: The University should revise its procedures and controls to ensure that the return of Title IV calculations are completed timely and accurately for all students who withdraw. Management's Response: The University agrees with the finding. The University believes this was an isolated incident related to the turnover of the Financial Aid Director position. Beginning in Summer 2025, the new Financial Aid Director and Registrar have been meeting bi-weekly to discuss all changes of enrollment including withdrawals. The process ensures that all students are reviewed and all R2T4s are completed on all students who withdraw from Midland University and have Title IV funding.