Finding Text
Inaccurate Return of Title IV (R2T4) Funds Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 and 84.007 Federal Award Identification #: 2021-2022 Financial Aid Award Year Condition: The College did not always calculate unearned Title IV funds correctly. Criteria: 34 CFR 668.22 Questioned Costs: $1,341 Context: Out of 8 students tested, 4 students did not have the correct amount of unearned Title IV funds returned when they withdrew from the College. Cause: Misapplication of the new modular withdrawal R2T4 regulations. Pell was not recalculated and returned properly prior to the R2T4 calculation for these students as they did not begin attendance in certain modular classes. Effect: Incorrect amount of unearned Title IV funds returned. The net result was an additional amount of $1,342 in Pell to be returned. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend that as part of the R2T4 calculation process, attendance in all classes for which Pell was disbursed be confirmed and Pell adjustments be made if needed, prior to completing the R2T4 calculation. We also recommend an individual with the appropriate level of experience periodically review R2T4 calculations and returns to help ensure that internal controls over the process can operate effectively and help achieve compliance. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.