Finding Text
Return of Title IV (R2T4) Calculations Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2021-22 Financial Aid Year Condition: When students withdrew either officially or unofficially, the College did not always return unearned Title IV aid timely. Additionally, the College did not always calculate unearned Title IV funds correctly. Criteria: 34 CFR 668.22 Questioned Costs: $1,443 Context: Out of 25 students, 1 student who withdrew during the audit period tested had funds returned late. The late return within the fiscal year was one day past due and totaled $1,990 in FDL. Additionally, out of 25 R2T4s tested, there were 2 with a calculation error due to the wrong calendar. These calculation errors resulted in $631 of FDL questioned costs and an over return of $139 of FDL. There was one student who did not begin attendance in one class resulting in a return of $812 of Pell needed. Lastly, there were two post-withdrawal disbursements that were not processed timely. Cause: This was an oversight by the College. Effect: Incorrect amount of unearned Title IV funds returned and returns of Title IV funds were not performed timely. Identification as repeat finding, if applicable: 2021-003 Recommendation: We recommend an individual in financial aid with the appropriate level of experience periodically review student's 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.