Finding Text
The following finding was noted:
FINDING 2023-001: RETURN TO TITLE IV CALCULATION
Condition
For seven of the twenty-one Return to Title IV (R2T4) calculation procedures tested, we noted that the R2T4
was incorrectly calculated. The students involved were #s 42, 48, 50, 52, 53, 57 and 58.
Criteria
Federal regulations require that if a recipient of Title IV grant or loan funds withdraws from a school after
beginning attendance, the amount of Title IV grant or loan assistance earned by the student must be
determined. If the amount disbursed to the student is greater than the amount the student earned, the unearned
funds must be returned. If the amount disbursed to the student is less than the amount the student earned, and
for which the student is otherwise eligible, he or she is eligible to receive a post-withdrawal disbursement
(PWD) of the earned aid that was not received. The institution must correctly calculate the amount of Title
IV funds that must be returned.
Cause
For student #42, the Institution used an incorrect last date of attendance (LDA) when performing the R2T4
calculation. For the remaining students, #s 48, 50, 52, 53, 57 and 58, the Institution did not exclude the
correct number of scheduled break days in the Fall 2022 semester from the R2T4 calculation.
Effect and Questioned Costs
As noted below, the Institution did not return the correct amount of Title IV aid. Subsequent to our testing,
the Institution returned all under refunded amounts to the respective Title IV program. In addition, the
Institution awarded Institutional credits to all students with over refunded amounts.
Over (Under)
Student # Refunded Amount Title IV Program
42 $ (896) 2022/2023 Pell Grant
48 $ 17 2022/2023 Pell Grant
50 $ 21 2022/2023 Pell Grant
52 $ 69 2022/2023 Pell Grant
53 $ 38 2022/2023 Pell Grant
57 $ 65 2022/2023 Pell Grant
58 $ 1,266 2022/2023 Pell Grant
Subsequent to the audit, the Institution performed a file review of all Title IV recipients who withdrew,
dropped or were terminated in the Fall 2022 semester and prepared a spreadsheet to document and identify
errors as they relate to Return Title IV Calculations. Of the forty-nine student files tested as part of the file
review, thirty students had incorrect R2T4 calculations performed as a result of the error in the Fall 2022
semester’s scheduled break days (including those six cited above), resulting in an error rate of 61%. The
Institution over-refunded $2,648 in 2022-2023 Pell Grant funds, including the questioned costs from the six
students cited above. In addition, the Institution under-awarded $3 Post-Withdrawal Disbursement of
2022-2023 Pell Grant funds. M&A confirmed all necessary Institutional credits were made per the file
review. Recommendation
The Institution should improve established procedures to ensure that, in the future, R2T4 calculations are
properly calculated in accordance with the federal regulations.
Views of Responsible Officials
The Institution has reviewed the finding and concurs with the recommendation. As outlined in the Corrective
Action Plan, the Institution has procedures in place to ensure compliance with the requirements.