Finding Text
Finding 2025 001 – Return of Title IV Funds Federal Program: Student Financial Assistance Cluster Assistance Listing Numbers: 84.007, 84.063, 84.268 Federal Agency: U.S. Department of Education Federal Awards Year 2024-2025 Criteria: Federal regulations require institutions to determine the amount of Title IV aid earned by a student who withdraws by calculating the percentage of the payment period or period of enrollment completed using calendar days completed divided by total calendar days in the period, in accordance with 34 CFR 668.22(e). An accurate calculation of days in the payment period is necessary to determine the correct amount of Title IV aid earned and unearned. Condition: Of the 2 students selected for testing of Title IV disbursements, the Conservatory improperly calculated the number of days used in the Return of Title IV Funds calculation for the Fall 2024 semester, resulting in an incorrect percentage of Title IV aid earned for both students. Consequently, the amount of Title IV aid refunded was not calculated in accordance with federal requirements. Cause: The Conservatory did not have sufficient controls in place to ensure the accurate calculation of calendar days in the payment period used for R2T4 calculations. Effect: As a result, the Conservatory did not properly calculate the amount of Title IV aid earned and unearned, resulting in additional funds returned to the Department. Questioned Costs: $1,108 Repeat Finding: No. Recommendation: The Conservatory should strengthen controls over R2T4 calculations to ensure that the number of calendar days used in determining earned Title IV aid is calculated accurately and in accordance with federal requirements. View of Responsible Officials: Management agrees with the finding. See corrective action plan.