Finding Text
Finding number: 2025-001 Federal agency: U.S. Department of Education Programs: Student Financial Assistance Cluster Assistance Listing #: 84.063 Award year: 2025 Criteria According to 34 CFR 668.22(e): (1) General. The amount of title IV grant or loan assistance that is earned by the student is calculated by— (i) Determining the percentage of title IV grant or loan assistance that has been earned by the student, as described in paragraph (e)(2) of this section; and (ii) Applying this percentage to the total amount of title IV grant or loan assistance that was disbursed (and that could have been disbursed, as defined in paragraph (l)(1) of this section) to the student, or on the student's behalf, for the payment period or period of enrollment as of the student's withdrawal date. (4) Total amount of unearned title IV assistance to be returned. The unearned amount of title IV assistance to be returned is calculated by subtracting the amount of title IV assistance earned by the student as calculated under paragraph (e)(1) of this section from the amount of title IV aid that was disbursed to the student as of the date of the institution's determination that the student withdrew. Condition The Financial Aid Department is responsible for completing the Return of Title IV calculation to determine how much Title IV funds the student earned and how much must be returned to the Department of Education. Once the Return of Title IV calculation is completed, Franklin Cummings Tech is responsible for adjusting the student’s billing statement and returning unearned Title IV funds through the U.S. Department of Education’s Grant Management System (“G5”). During our testing, we noted 1 student, out of a sample of 32, who was awarded Pell after the student’s withdrawal date, which the student had not earned. Cause Franklin Cummings Tech did not consistently follow the procedures in place to monitor student withdrawals and return unearned Title IV funds to the Department of Education. Effect Franklin Cummings Tech granted Pell funds in excess of the amount earned by the student. Questioned Costs $3,697 Perspective Our sample was not, and was not intended to be, statistically valid. Of the 32 students selected for testing, 1 student, or 3.1% of our sample, had unearned Title IV funds that were not returned to the Department of Education. Identification as a Repeat Finding, if applicable Not applicable Recommendation Franklin Cummings Tech should strengthen its internal controls over the Return of Title IV (R2T4) process, including monitoring student withdrawals and reviewing calculations, to ensure earned funds are calculated correctly and unearned portions are returned to the Department of Education. View of Responsible Officials Franklin Cummings Tech agrees with the finding.