Finding Text
FINDING 2025-001 Federal Agency: US Department of Education Federal Program Title: Student Financial Assistance Cluster Assistance Listing Number: 84.007; 84.063; 84.268 Finding Type: Material Weakness in Internal Control over Compliance; Material Noncompliance Criteria: Institutions must calculate Return of Title IV Funds (R2T4) refunds in accordance with federal regulations. These regulations state that when a student withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV funds that the student earned as of the student's withdrawal date. The amount earned is based on a pro-rata calculation using the number of days/hours attended and the number of days/hours in the payment period or period of enrollment (34 C.F.R. § 668.22). Condition: R2T4 refund calculations were not properly computed when several students withdrew from the Institution. Cause: In these cases, it appears that the Institution's R2T4 refund calculation procedures were not properly followed. Effect or Potential Effect: The Institution incorrectly computed R2T4 refund calculations for four of the 15 withdrawal student files tested for R2T4 compliance (statistical sample). In these cases, the Institution used an incorrect last date of attendance in the R2T4 refund calculation. The incorrectly computed R2T4 refund calculations were as follows: Amount Correct Under Student Ty2e Program Returned Amount Amount A32 Refund Pell $2,692 $2,870 $ 178 A33 Refund FDLP $ 146 $ 304 $ 158 A36 Refund FDLP $ 0 $ 1,110 $ 1,110 A39 Refund FDLP $ 0 $3,119 $3,119 Pell $ 0 $ 221 $ 221 The overall error rate for this finding is 26. 7% ( 4/15). Questioned Costs - The questioned costs associated with this finding were as follows: Universe: Sample Tested: Questioned Costs: Projected Error Rate: 27.8% Students 18 15 4 Projected Total Questioned Costs: $5,983 Projected Total Students: 5 Repeat Finding: Not a repeat finding. Pell $463,359 $ 10,869 $ 399 FDLP $859,198 $ 31,628 $ 4,387 FSEOG $15,919 $ 223 $ 0 Recommendations: The Institution should return the unearned funds for the students noted above. In addition, the Institution should take steps to ensure that its R2T4 refund calculation procedures are strictly followed. Views of Responsible Officials: The Institution concurs with this finding and has procedures in place as outlined in the Corrective Action Plan to ensure compliance with requirements.