Finding Text
Incorrect and Untimely Return of Title IV (R2T4) Funds Calculations Significant Deficiency
DEPARTMENT OF EDUCATION
ALN #: 84.268, 84.063
Federal Award Identification #: 2022-2023 Financial Aid Year
Condition: When students withdrew, Bethany did not always return unearned Title IV aid timely as an attendance taking school. Additionally, there was one incorrect calculation of returned funds for a student that withdrew during a term due to an incorrect calendar setup.
Criteria: 34 CFR 668.22
Questioned Costs: $-0-
Context: Out of 6 students, 1 student who withdrew during the audit period tested had funds returned 78 days late while the financial aid director was unavailable. The fall 2022 traditional calendar did not include the weekends as break days, resulting in one student with an overreturn of $183 of subsidized loans. Because of the error rate, this is classified as a significant deficiency.
Cause: This was an oversight by Bethany in reviewing the calendar setups and cross training for while an individual was out of the office.
Effect: Incorrect amounts of federal funding were returned. There was an over-return of subsidized loans of $183. Additionally one return was made late.
Identification as repeat finding, if applicable: Not applicable
Recommendation: We recommend Bethany run a listing of withdrawals after each semester or each module 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 or module to ensure all unofficial withdrawals are followed up on so that R2T4’s are completed timely when required. We recommend an individual with appropriate return calculation knowledge review each calendar set up and recalculate the first few withdrawals manually to ensure the system is functioning as intended.
Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.