Finding Text
Return of Title IV (R2T4) Unearned Funds Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.268 Federal Direct Loans, 84.063 Pell Grants Federal Award Identification #: 2023-2024 Financial Aid Year Condition: Unearned Title IV aid was not returned accurately and timely. Criteria: 34 CFR 668.21, 34 CFR 668.22 Questioned Costs: $6,629 Context: Out of 5 students tested, 3 did not have correct returns of Title IV funds. 2 online students did not have an R2T4 performed after their withdrawal or Pell recalculated to ensure they were paid only for classes they began attendance in. This resulted in $3,511 in Federal Direct Loans and $3,118 in Pell under returned to the department of education. Another online student had an R2T4 performed, however the break day setup in the R2T4 calendar was done incorrectly and did not include weekends for breaks longer than 5 days. This resulted in an over return of Pell of $47. Cause: The College does not have a process to monitor students for academic activity in distance education courses. The College does not have a process to monitor students with federal aid disbursed for unofficial withdrawals. The R2T4 calendar was not correctly set up. Effect: Noncompliance with R2T4 regulations regarding withdrawals. Noncompliance with the requirement to determine a student has begun attendance in all courses for which Title IV aid is disbursed. Noncompliance with the requirement for distance education courses to have evidence of academic engagement to establish attendance in those courses. Identification as repeat finding, if applicable: 2023-011. Recommendation: We recommend a 0-credit report be run at the end of each semester to ensure all withdrawals are followed up on so that R2T4s are completed timely when required. We further recommend a process be implemented to track student attendance in courses. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.