Finding Text
Special Tests and Provisions – Return of Title IV Funds (R2T4) – Significant Deficiency in Internal Controls over Compliance Department of Education Student Financial Assistance Cluster Department of Education Federal Assistance Listing Number: 84.063, 84.379, 84.268, 84.007 Federal Program Name: Federal Pell Grant Program, Teacher Education Assistance for College and Higher Education, Federal Direct Student Loans, Supplemental Educational Opportunity Grant Federal Award Number: P063P232403, P379T242403, P268K242403, P007A234364 Award Year: 2023-24, 2022-23 Criteria – In accordance with 34 CFR 668.22 when a recipient of title IV grant or loan assistance 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 grant or loan assistance that the student earned as of the student’s withdrawal date. Condition/context – We selected a sample of 6 official and 2 unofficial withdrawals from a population of 41 total withdrawals. Two students tested were mistakenly processed as official withdrawals, however the University was unable to support the withdrawal dates. As such, the 50% rate should have been used for the R2T4 calculation. This would have resulted in one student earning more aid than originally calculated. For the second student this would have resulted in funds needing to be returned. For one sample selection the R2T4 was not completed until approximately 8 months after the student had notified the University of their withdrawal. Our sample was not, and was not intended to be, statistically valid. Questioned costs – Undeterminable. Cause/effect – This occurred because of lack of controls and processes in place to ensure supporting documentation is maintained for student’s withdrawal dates. This resulted in the calculations being incorrect and money not being returned to the federal government. Repeat finding – Yes, 2023-009 Recommendation – We recommend the University review their policies and procedures to ensure that all withdrawals have the appropriate documentation to support the withdrawal date used in the calculation. We also recommend a control be put in place to ensure the calculations are performed timely. Views of responsible officials and planned corrective actions – As a response to concerns about disruptions in processes and the turnover of key staff in several departments, the Enrollment Alliance group that includes director-level staff in Admissions, the Registrar, Financial Aid, Advising, Bursar, and IT began meeting under the facilitation of the VP of Student Affairs on January 7, 2025. This group has helped to guide the Registrar's Office in the development and workflow structure of an electronic withdrawal form that must be routed through several required offices, including Financial Aid, to ensure that processes including R2T4 calculations are completed and correct for each student who withdrawals during the semester. This structure is now in place.