Finding Text
Return of Title IV (R2T4) Calculations Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.268 and 84.063 Federal Award Identification #: 2021-22 Financial Aid Year Condition: The University did not accurately calculate R2T4s causing the wrong amount of aid to be returned. Additionally, the University did not implement the modular withdrawal regulations that went into effect July 1, 2021. Criteria: 34 CFR 668.22 Questioned Costs: $7,826 Context: Out of 18 students who withdrew during the audit period, 4 students had an R2T4 with an error in the calculation. Errors included the wrong number of days excluded for scheduled breaks, the wrong tuition charges, and the wrong Pell and FDL amounts in the amount disbursed columns. Additionally, there was 1 student enrolled in modular courses who required an R2T4 for which the University did not complete an R2T4. All errors were corrected during the audit period. Additionally, the University completed additional review of their students in modular programs to adjust for any additional R2T4s that were required. Cause: The University did not review R2T4s for accuracy before returning funds. Additionally, implementation of new R2T4 regulations was not completed by the University. Effect: Incorrect amounts of federal funding were returned. The errors mentioned above resulted in under-returning of $1,624 in Pell grant, $2,294 in unsubsidized loans and $3,889 in PLUS loans. There was also an over-return of $19 in Pell grant. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend financial aid periodically review modular students R2T4 calculations and return calculations 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.