Finding Text
2023-005 RETURN OF TITLE IV (R2T4) FUNDS (Significant Deficiency, Other Non-compliance)
Federal Program information:
Title: Student Financial Assistance Cluster
Agency: U.S. Department of Education
Pass Through: None
Assistance Listings Number: 84.007, 84.033, 84.063, 84.268, 84.379
Award Year: 2023
Questioned Costs: None
Condition We tested a randomly selected population of 40 students receiving Title IV grant or loan assistance who had withdrawn during fiscal year 2023. Of this random sample of 40, there were 17 students who had unearned portions of Title IV aid, which was required to be returned to the Department of Education. Two of these 17 student had unearned amounts for which the total amount was not returned due to errors in the return calculation. The combined amount to be returned was $1,496, while the amount calculated and returned was $597, a shortage of $899.
Criteria
34 CFR 668.22 Treatment of Title IV funds when a student withdraws.
(a) General -
(1) When a recipient of Title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV grant or loan assistance that the student earned as of the student's withdrawal date in accordance with paragraph (e) of this section.
(2)
(e) Calculation of the amount of Title IV assistance earned by the student -
(4) Total amount of unearned Title IV assistance to be returned. The unearned amount of Title IV assistance to be returned is calculated by subtracting the amount of Title IV assistance earned by the student as calculated under paragraph (e)(1) of this section from the amount of Title IV aid that was disbursed to the student as of the date of the institution's determination that the student withdrew.
Effect
The University is not fully in compliance with Return of Title IV fund requirements in 34 CFR 668.
Cause
University personnel contacted the Banner software vendor (Ellucian) regarding the calculation errors within the student financial aid system. It was determined that in these two cases, the University had adjusted awards within the R2TV calculation to reflect the actual payment to student and locked the amounts within the banner form. As a result of a software defect the adjusted amounts were ignored in the calculation resulting in an understated return due from the institution to the Federal program.