Finding Text
Return of Title IV (R2T4) Calculations Significant Deficiency
DEPARTMENT OF EDUCATION
ALN #: 84.268, 84.063
Federal Award Identification #: 2022-2023 Financial Aid Year
Condition: There were 7 incorrect calculations of returned funds for students that withdrew during the term due to incorrect calendar setups.
Criteria: 34 CFR 668.22
Questioned Costs: $-0-
Context: Out of 10 students, 7 students who withdrew during the audit period tested had incorrect funds returned due to incorrect calendar setups resulting in $254 of Pell and $185 of Federal Direct Loans returned more than required. Because of the error rate but immaterial dollar amounts, this is classified as a significant deficiency.
Cause: The University uses a third party administrator to assist in processing R2T4’s. The third party administrator had incorrect calendar setups which resulted in all students completing less than 60% of the semester having an incorrect return.
Effect: Incorrect amount of unearned Title IV funds returned.
Identification as repeat finding, if applicable: Yes, 2022-001, 2021-003, 2020-006, 2019-005, and 2018-005.
Recommendation: We recommend the University review the calendar setups and ensure the proper number of days are used in the calculations.
Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.