Finding Text
2025-002 - Student Financial Assistance Cluster Federal Agency - U.S. Department of Education Grant Period - Year ended June 30, 2025 Compliance Requirement - N. Return of Title IV Funds Criteria - Federal regulations require institutions to calculate and return unearned Title IV funds upon a student’s withdrawal. Condition - During our testing for Return of Title IV (R2T4) calculations, it was noted that for one student selected for testing, the student’s R2T4 was not properly calculated and the incorrect funds were returned. Cause - The BOCES had a lack of review controls and segregation of duties in their Return of Title IV Funds process. As a result, the controls over Return of Title IV funds were not operating effectively. Effect -The amount and type of Title IV funds were not being calculated and reviewed to ensure the correct amounts of unearned funds were returned. Recommendation - BOCES should provide training to employees responsible for processing the R2T4 to ensure that they have adequate knowledge of the related rules and regulations. This training should include a detailed process on properly completing the R2T4. Additionally, a more formalized review and approval process will reduce the likelihood of such findings in the future.