Finding Text
Finding 2025-005 - U.S. Department of Education (ED), Student Financial Assistance Cluster - Untimely Return of Title IV Funds (R2T4) (significant deficiency): Information on the Federal Program: Federal Pell Grant Program, FAL No. 84. 063, June 30, 2025; Federal Supplemental Educational Opportunity Grant (FSEOG), FAL No. 84.007, June 30, 2025; Federal Work-Study Program (FWS), FAL No. 84.033, June 30, 2025; Federal Direct Student Loans, FAL No. 84.268, June 30, 2025. Criteria – Per 34 CFR § 668.22 (j), (1) institutions must return the amount of Title IV funds for which they are responsible as soon as possible, but no later than 45 days after the date the institution determines that a student has withdrawn. Condition – During our review of the Return of Title IV Funds (R2T4) calculations, we identified one (1) out of four (4) students for whom the institution did not return unearned Title IV funds within the 45-day requirement. Cause – The institution did not consistently apply the R2T4 requirements under 34 CFR §668.22 for all students who withdrew during the review period, resulting in funds not being returned timely. Effect – The institution was not in compliance with federal R2T4 return requirements. Untimely returns reflect weaknesses in internal controls over Title IV administration and may adversely affect administrative capability under 34 CFR § 668.16. Questioned Costs – $0 Perspective – Returning unearned Title IV funds within 45 days is a core compliance requirement. Institutions must demonstrate the ability to promptly identify withdrawals, accurately calculate R2T4 amounts, and process returns to maintain Title IV eligibility. Repeat Finding – No Auditor’s Recommendation – The institution should implement a formal R2T4 tracking and monitoring system, strengthen coordination between departments and perform periodic supervisory reviews of R2T4 calculations and returns. View of Responsible Officials – Do not concur. All returns to Title IV were processed within 45 days of receiving withdrawal notification from the Registrar’s Office.