Finding 1221728 (2025-004)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-06-30
Audit: 405985
Organization: Newberry College (SC)
Auditor: CAPINCROUSE LLC

AI Summary

  • Core Issue: The R2T4 calculation was inaccurate for one student, leading to incorrect federal aid returns.
  • Impacted Requirements: This finding violates 34 CFR 668.22, which governs R2T4 calculations.
  • Recommended Follow-Up: Implement regular reviews of R2T4 calculations to ensure compliance and accuracy.

Finding Text

Inaccurate Return of Title IV Funds (R2T4) Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268—Federal Direct Student Loans and 84.063—Federal Pell Grant Program Federal Award Identification #: 2024-2025 Financial Aid Year Condition: The R2T4 calculation was not completed accurately. Criteria: 34 CFR 668.22 Questioned Costs: $0 Context: Out of 10 students tested, there was 1 R2T4 calculation that was not completed accurately. For this student, the student only attended 1 module and the wrong number of days were used in the initial calculation. As a result of the in accurate calculation, there was an over return of $332 in Federal Direct Loans and $419 in Pell grants to Department of Education. This was corrected during the audit. Cause: Oversight by management. Effect: The wrong amount of federal aid was returned to Department of Education. Identification as repeat finding, if applicable: 2024-003 and 2023-002 Recommendation: We recommend the College implement a review of returns on a regular basis to ensure that the R2T4 calculation is completed accurately and in line with R2T4 regulations. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Corrective Action Plan

Inaccurate Return of Title IV Funds (R2T4) Planned Corrective Action: Management acknowledges the audit finding regarding an inaccurate Return of Title IV (R2T4) calculation. In the instance identified, an incorrect number of days was used for a student enrolled in a modular course, resulting in an over-return of $332 in Federal Direct Loans and $419 in Pell Grant funds. The College has addressed this issue through a comprehensive restructuring of the Financial Aid Office. Leadership of the office has been elevated from a director-level position to an Assistant Vice President (AVP) role, and the office has been restaffed with experienced and qualified personnel. In addition, the College has reinforced training and review procedures related to R2T4 calculations, including increased supervisory oversight to ensure accuracy, particularly for students enrolled in modular coursework. Ongoing monitoring will be performed to ensure continued compliance. Person Responsible for Corrective Action Plan: Missy Perry, AVP for Financial Aid Anticipated Date of Completion: June 30, 2026

Categories

Student Financial Aid

Other Findings in this Audit

  • 1221725 2025-003
    Material Weakness Repeat
  • 1221726 2025-003
    Material Weakness Repeat
  • 1221727 2025-004
    Material Weakness Repeat
  • 1221729 2025-005
    Material Weakness Repeat
  • 1221730 2025-005
    Material Weakness Repeat
  • 1221731 2025-006
    Material Weakness Repeat
  • 1221732 2025-006
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.766 COMMUNITY FACILITIES LOANS AND GRANTS $29.97M
84.268 FEDERAL DIRECT STUDENT LOANS $11.54M
84.063 FEDERAL PELL GRANT PROGRAM $5.60M
84.116 FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDUCATION $503,965
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $116,601
84.033 FEDERAL WORK-STUDY PROGRAM $97,788
84.379 TEACHER EDUCATION ASSISTANCE FOR COLLEGE AND HIGHER EDUCATION GRANTS (TEACH GRANTS) $15,088