Finding Text
Finding 2025-002: Return of Title IV (R2T4) Funds Federal agency: U.S. Department of Education Federal program title: Student Financial Assistance Cluster Assistance Listing Number: 84.063, 84.033, 84.268, 84.007 Award Period: September 1, 2024, through August 31, 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters Criteria or Specific Requirement: In accordance with 34 CFR 668.22(j)(1), an institution must return the amount of Title IV funds for which it is responsible to return as soon as possible but no later than 45 days after the date of the institution's determination that the student withdrew. Per 34 CFR 668.22(g)(ii)(2) institutional charges are tuition, fees, room and board (if the student contracts with the institution for the room and board) and other educationally-related expenses assessed by the institution. Condition/Context: During our testing of 7 students, which is a statistically valid sample, we noted 1 error in the refund calculation and 1 instance where funds were not returned to the Department of Education within 45 days of the University determining the withdrawal. Questioned Costs: $7,470 Cause: The University's internal controls did not identify the errors for compliance with the criteria mentioned above. Effect: Federal funds were not returned timely to the Department of Education as required by regulations. Repeat Finding: Yes, see finding 2024-002. Recommendation: We recommend the University review its procedures to ensure that refund calculations are accurate and Title IV funds required to be returned are done within 45 days after the date of the institution's determination that the student withdrew. Views of Responsible Officials: Please refer to the attached corrective action plan.