Finding 1789 (2023-001)

Untimely and Inaccurate Return of Title IV Funds (R2T4) Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.063 Pell Grants and 84.268 Federal Direct Loans Federal Award Identification: 2022-2023 Award Year Condition: When students withdrew either officially or unofficially, the University did not always return unearned Title IV aid timely. There were also three incorrect calculations of returned funds for students that withdrew during the term. Criteria: 34 CFR 668.22 Questioned Costs: $3,703 Context: Out of 8 students tested, 2 students who withdrew during the audit period tested had funds totaling $14,811 returned late ranging from 39 to 56 days late. 3 out of the 8 students tested also had inaccurate calculations. The University miscalculated the number of days for 1 of the returns and the other 1 return had an inaccurate withdrawal date leading to the miscalculation and 1 did not have a return calculated. The questioned costs are related to the latter 2 students. The University is in the process of correcting all affected students and manually recalculating the students. Because of the error rate, this is classified as a material weakness. Cause: This was an oversight by the University. R2T4 calculations were not reviewed timely and for accuracy due to staffing. 1 of the students was in a distance education program and the University was unable to determine that the student had academic engagement and all Pell funds should have been returned rather than performing an R2T4 calculation. Effect: Return of Title IV funds were not performed timely. Incorrect amount of unearned Title IV funds returned. Identification as repeat finding, if applicable: N/A Recommendation: We recommend an individual in financial aid with the appropriate level of experience periodically review R2T4 calculations and returns to help ensure that internal controls over such a process can operate effectively and achieve compliance. We also recommend the University implement controls to track and remind when returns need to be returned once the withdrawal determination has been made. Views of Responsible Officials and Planned Corrective Action: Management is in agreement with this finding. See attached corrective action plan.