Finding 1940 (2023-001)

Untimely Return of Title IV (R2T4) Funds Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2022-2023 Financial Aid Year Condition: When students withdrew either officially or unofficially, the University did not always return unearned Title IV aid timely within the 45 days from the determination of the student’s withdrawal. Criteria: 34 CFR 668.22 Questioned Costs: $0 Context: Out of 9 withdrawals tested (both official and unofficial), 2 students who withdrew in Fall 22 had funds totaling $9,484 returned in September 2023, 189 days late. 1 other student had a corrected R2T4 calculation completed in Fall 22 based on an updated last date of attendance resulting in $1,776 funds owed to the student but it wasn’t disbursed until September 2023. Cause: Lack of review over individual R2T4 calculations, particularly unofficial withdrawals Effect: Returns of Title IV funds were not performed timely. Identification as repeat finding, if applicable: Yes, 2022-001 Recommendation: We recommend that the University run a listing of withdrawals after each semester and compare the list of students who had R2T4’s completed to ensure completeness. We further recommend a 0-credit report be run at the end of each semester to ensure all unofficial withdrawals are followed up on so that R2T4’s are completed timely when required. We also 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 process can operate effectively and achieve compliance. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.