Finding 1165758 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2025-12-19

AI Summary

  • Core Issue: R2T4 calculations were not done for 2 out of 5 students who withdrew, leading to a failure to return $4,231 in Pell Grant funds.
  • Impacted Requirements: Compliance with 34 CFR 668.22 regarding timely return of Title IV funds.
  • Recommended Follow-Up: Implement a verification process with professors for last attendance dates and retain documentation to ensure all R2T4 calculations are completed.

Finding Text

Return of Title IV (R2T4) Calculations Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.063 Federal Pell Grants Federal Award Identification #: 2024-2025 Financial Aid Year Condition: Return calculations were not completed for students that withdrew during the term. Criteria: 34 CFR 668.22 Questioned Costs: $4,231 Context: Out of 5 students tested for official and unofficial withdrawals, 2 did not have an R2T4 calculation performed but should have as there was no documentation retained to support the students had attended past 60% of the term to earn their aid. As a result, Pell in the amount of $4,231 for these students should have been returned. The University is in the process of correcting the affected students. Cause: This was an oversight by the University. Professors had assigned an incorrect grade code indicating the students did not fail to complete the class and the University did not follow up with professors to verify the last date of attendance. Effect: Return of Title IV funds were not performed timely and the Pell was not returned until the audit. Identification as repeat finding, if applicable: Not applicable Recommendation: We recommend the University add a check to verify the last date of attendance with professors for students who withdrew and that the supporting documentation be retained to ensure all R2T4 calculations are completed as required. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Corrective Action Plan

Return of Title IV (R2T4) Calculations Planned Corrective Action: SEBTS will take the following steps to address the failure to properly complete R2T4 calculations and returns: We will redefine an FI grade as “Failure due to inactivity” in the Faculty Handbook and Academic Catalog. Students will earn an FI if they fail the class due to lack of attendance or participation. The Provost will remind faculty during the final Faculty Meeting of each academic semester about the FI grade. The Registrar’s Office will send an email to all Faculty and Faculty Support Specialists during the last week of classes to remind faculty about assigning an FI to students who failed the course due to inactivity. The Instructional Design Office will inform Faculty Support Specialists about the FI grade during scheduled training meetings throughout the semester. The Adjunct Faculty Support Specialist will inform adjunct faculty during the final week of classes about the FI grade. The Registrar’s Office has updated Self Service, so faculty must enter the last date of attendance/participation if they enter an FI or F grade. The Registrar’s Office will use this to audit and only request further details from faculty who assign an F and indicate that a student stopped attending/participating before the end of the semester. The Learning Activity Report will be adjusted so Academic Advising can send a check-in email after 2 weeks of inactivity, a warning email after 3 weeks of inactivity, and the professor can assign an FI after 4 weeks of inactivity. Person Responsible for Corrective Action Plan: David Phillips, Director, Student Resources & Financial Aid Anticipated Date of Completion: 12/19/2025

Categories

Student Financial Aid Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.063 FEDERAL PELL GRANT PROGRAM $1.26M