Finding Text
Late Returns of Title IV Calculations Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.007, 84.063 and 84.268 Federal Award Identification #: 2021-22 Financial Aid Year Condition: When students withdrew either officially or unofficially, the University did not always complete R2T4 calculations accurately and return unearned Title IV aid timely. Criteria: 34 CFR 668.22 Questioned Costs: $10,417 Context: Out of 29 withdrawn students tested for timely and accurate R2T4?s, 13 had either late returns, inaccurate returns or both. 6 students had a total of $12,154 returned late ranging from 9 to 154 days, with $811 included in questioned costs for a return made as part of audit process. 2 students had $22,715 returned late ranging from 21 to 151 days, which includes $9,606 in questioned costs for miscalculations identified in the audit resulting in additional funds required to be returned. 3 students had $5,490 returned late ranging from 6 to 28 days late, however 2 had correct calculations but $1,009 more was returned than required and the other had an incorrect calculation resulting in $3,516 more returned than required. 1 student who withdrew from a modular program met an exemption but the University returned $1,652 that the student was eligible to keep. 1 other student had a $615 post withdraw disbursement that was made 90 days late. Cause: Significant staff turnover in financial aid office as well as a system conversion. There is also a lack of understanding regarding the new modular withdraw regulations. Effect: The correct amount of Title IV funds not returned timely as required. Noncompliance with new R2T4 regulations regarding withdrawals from modular programs. Identification as repeat finding, if applicable: N/A Recommendation: We recommend that additional training be completed on R2T4 calculations and the new modular withdraw regulations. We also recommend that financial aid office work with the registrar to put procedures in place for timely notification when students stop attending. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.