Finding Text
Federal Agency: United States Department of Education Federal Program Name: Student Financial Aid Assistance Listing Number: Student Financial Aid Cluster Federal Award Identification Number and Year: Award Period: July 1, 2024 to June 30, 2025 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or Specific Requirement: In accordance with 34 CFR 668.22(a)(1), 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. An institution must also return the amount of title IV funds for which it is responsible as soon as possible but no later than 45 days after the date of the institution's determination that the student withdrew in accordance with 34 CFR 668.22(j). Condition: During our testing, we noted that for 5 out of 60 students, a R2T4 calculation wasn’t completed when a calculation should have been performed. In addition, we noted that 4 out of 60 students did not have their R2T4 funds returned within 45 days of the school determining that the student withdrew. Questioned Costs: None over $25,000 Context: During our testing, we noted that although the University had procedures in place to verify that all students who qualify for R2T4 calculations have calculations performed and that Title IV funds are returned timely, those procedures were not always effective and resulted in errors. Cause: The University's processes and controls did not ensure that R2T4 calculations were properly performed accurately and that Title IV funds were returned timely. Effect: Title IV funds were not returned properly and timely to the federal government. Repeat Finding: Yes. 2024-001 Recommendation: We recommend the University review the R2T4 requirements and implement adequate procedures to make sure that students that withdrew have a calculation performed. We also recommend the University to evaluate the R2T4 review process to ensure Title IV funds are returned timely. Views of Responsible Official: There is no disagreement with the audit finding.