Finding Text
Federal Agency:U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not Applicable Program Name: Federal Direct Student Loan Program Federal PELL Grant ALN and Program Expenditure: 84.268 ($561,518) 84.063 ($423,936) Award Number P268K251726 P063P241726 Federal Award Year: July 1, 2024 to June 30, 2025 Questioned Costs: $902 Condition Found:The R2T4 calculations were incorrect for three of the fifteen students in our sample. All of the R2T4s prepared by the University were reviewed during our audit. The following details the errors for the students in question:For the first student: The last date of the semester used in the calculation was incorrect.Institutional charges were not included in the calculation. Funds were not returned within 45 days of the date the University determined the student withdrew. For the second student: A scheduled break of 5 days or more was not subtracted from the number of days in the semester. Funds were not returned within 45 days of the date the University determined the student withdrew .For the third student: The last date of the semester used in the calculation was incorrect. The amount of subsidized Federal Direct Loans that could have been disbursed used in the calculation was incorrect. Criteria:Per the Student Financial Aid Handbook, an institution must disburse any Title IV grant funds a student is due as part of the PWD within 45 days of the date the institution determined the student withdrew. Per the Student Financial Aid Handbook, any scheduled break of five days or more should be subtracted from the total number of days in the semester. If a student withdraws before a scheduled break, the break days are not subtracted from the number of days attended. The last date of the semester in the R2T4 calculation should be the date published in the academic calendar.Per the Student Financial Aid Handbook, the amount of aid that could have been disbursed should equal the amount that was awarded to the student unless Pell is adjusted for a module that was not begun. Federal Direct Loans must be originated to be included as aid that could have been disbursed. Per the Student Financial Aid Handbook, institutional charges include tuition and fees that were posted to the student’s account at the time of the withdraw.Cause:The University uses a third-party administrator to calculate R2T4s. The incorrect break days and last date of the semester were reported to the TPA. The remaining errors oversights during the R2T4 preparation process and were not caught by the TPA or University. Possible Asserted Effect:For the first student, the original R2T4 calculated stated that $2,858 of subsidized and unsubsidized Federal Direct Loans should be returned. Those funds were not returned within 45 days from the date the University withdrew. After the R2T4 was corrected, only $2,179 should have been returned. The student is due an additional $679 of subsidized Federal Direct Loans.For the second student, the original R2T4 calculated stated that $312 of Federal Pell Grant funds should be returned. Those funds were not returned within 45 days from the date the University withdrew. After the R2T4 was corrected, only $309 should have been returned. The student is due an additional $3 of Federal Pell Grant funds. The third student is due an additional $220 of Federal Pell Grant funds. Repeat Finding: There was not a similar finding in the previous year. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: The CFO should work with the TPA to correct the R2T4 calculations make the necessary changes to the student awards detailed in the Possible Asserted Effect section. Procedures should be improved with TPA and University to ensure the R2T4 are returned timely. Management Response:Management agrees with the auditors’ finding and their recommendation. The CFO is working with the TPA to recalculate the R2T4s. The necessary changes detailed in the Possible Asserted Effect section were made in November 2025.