Finding Text
2023-001 – U.S. Department of Education Student Financial Assistance Cluster – Special Tests and Provisions: Return of Title IV Funds
Criteria: When a recipient of Title IV grant or loan assistance withdraws from an institution during a payment period or the period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV aid earned by the student as of the student’s withdrawal date. If the total amount of Title IV assistance earned by the student is less than the amount that was disbursed to the student or on his or her behalf as of the date of the institution’s determination that the student withdrew, the difference must be returned to the Title IV programs as outlined in this section and no additional disbursements may be made to the student for the payment period or period of enrollment. If the amount the student earned is greater than the amount disbursed, the difference between the amounts must be treated as a post-withdrawal disbursement (34 CFR 668.22(a)(1) through (a)(5)).
Condition and Context: The College was unable to correctly calculate the amount of aid earned for three students out of six students tested.
Known Questioned Costs: None, reporting requirement not met.
Cause: The College did not correctly complete the R2T4 calculation worksheet.
Effect: The College was out of compliance with the requirement to return Title IV funds.
Recommendation: The College should continue to implement procedures to ensure the R2T4 calculation worksheet is accurately completed, as required. The College should also consider creating a training manual for any future new hires to learn the requirements related to federal aid scholarships.