Finding Text
Condition: For one student included in the audit sample, the institution did not complete the Return of Title IV Funds (R2T4) calculation or return unearned Federal Pell Grant funds within required timeframes. Specifically, the date of the institution’s determination that the student withdrew was April 2025. The required R2T4 calculation was not completed until February 2026, approximately ten months after the determination date. As a result of the delayed R2T4 calculation, the institution did not initiate the required cash return of unearned Federal Pell Grant funds within 45 days of the date of determination. Criteria : Federal regulations require institutions to determine and calculate the amount of Title IV aid earned when a student withdraws by performing a Return of Title IV Funds (R2T4) calculation based on the date of the institution’s determination that the student withdrew; and return any unearned Title IV funds within 45 days of that determination date. Cause: The institution did not have effective controls in place to ensure that R2T4 calculations were completed promptly after a student’s withdrawal was determined; and Pell Grant refunds identified through the R2T4 process were returned through G5 within required timeframes. Effect: Failure to complete the R2T4 calculation timely resulted in an untimely return of unearned Pell Grant funds, constituting noncompliance with Title IV cash management and R2T4 regulations. Repeat Finding: No. Recommendation: We recommend that the University establish procedures requiring timely identification of withdrawn students and completion of R2T4 calculations as required by federal regulations and perform periodic internal reviews of withdrawal and refund activity to ensure ongoing compliance. Views of Responsible Officials: The finding was in the No Passing Grade selection. Due to the way the institution tracks attendance, the student was listed as having earned an F instead of being administratively withdrawn. The institution will now start using a new report. This report will track: o Any student with a no passing grade o Any student in this category who received financial aid. IT has developed this report and the report is identified as the No passing Grades report. This will allow the institution to review and determine if the student needs to be considered as an unofficial withdrawal and whether or not an R2T4 is needed. The FA Business Systems analyst will run this report at the end of each term when grades have been issued. The institution will also meet with the Faculty Senate to put a process in place which will determine whether the student who earned a no passing grade participated in the course or should have been administratively withdrawn at the time grades are issued. This will help the institution to determine if an R2T4 calculation was needed and allow for a timely return of funds.