Finding Text
Incorrect and Untimely Return of Title IV (R2T4) Funds Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2021-22 Financial Aid Year Condition: When students in a modular program withdrew either officially or unofficially, the University incorrectly identified students who needed an R2T4 completed. Criteria: 34 CFR 668.22 Questioned Costs: $7,969 Context: Out of 28 students tested for accurate and timely returns, there were 6 students who had either earned failing grades or met an exemption under the new R2T4 modular withdraw regulations and did not require an R2T4 to be completed. This resulted in the University returning $2,573 in Pell and $8,172 in Federal Direct Loans to the Department of Education (ED) even though the students were eligible for those funds. There were an additional 2 students that had wrong amounts calculated for the R2T4 which led to $4,583 that should have been returned to ED and 1 student with a late return totaling $3,356. All these students were corrected during the audit. Cause: Due to the complexity of the new modular regulations the University was not able to comply with Title IV regulations for timely and accurate returns. Effect: Noncompliance with new R2T4 regulations regarding withdrawals for modular students, late returns to Title IV, and inaccurate amounts returned to Title IV. Identification as repeat finding, if applicable: 2021-003 Recommendation: We recommend an individual in financial aid periodically review modular students? 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.