Finding Text
Return of Title IV (R2T4) Calculations Material Weakness
DEPARTMENT OF EDUCATION
ALN #: 84.268, 84.063
Federal Award Identification #: 2022-2023 Financial Aid Year
Condition: The University did not return all required federal funds timely when a student withdrew or stopped attending. Additionally, the University did not make the post-withdrawal disbursements timely.
Criteria: 34 CFR 668.22
Questioned Costs: $2,069
Context: Out of 30 students tested, 3 students who withdrew during the audit period had funds returned late ranging from 14 to 252 days late but within the audit period, and 2 students had post-withdrawal disbursements made more than 180 days after the eligible date. One additional student was eligible for a post-withdrawal disbursement which had not been made during the fiscal year, and at the time of the report, was past the number of days allowed for a disbursement. Five students out of the 6 listed were before the spring 2023 semester. The return that was 14 days late was in the spring 2023 semester. All students that could be corrected during the audit process were corrected.
Cause: There has been significant turnover in the financial aid department at the University during the period under audit.
Effect: Federal funding was not returned timely. The post withdrawal disbursements made late were Pell disbursements totaling $1,536.
Identification as repeat finding, if applicable: Yes, 2022-002, 2021-004, and 2020-003.
Recommendation: We recommend that the University continue to provide additional training for counselors performing R2T4 calculations.
Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.