Finding Text
Inaccurate Return of Title IV Funds (R2T4)Material Weakness
DEPARTMENT OF EDUCATION
ALN #: 84.268, 84.063
Federal Award Identification #: 2022-2023 Financial Aid Year
Condition: For nontraditional student withdrawals, the University did not always calculate unearned Title IV funds correctly.
Criteria: 34 CFR 668.22
Questioned Costs: $5,226
Context: Out of 5 students, 3 students who withdrew during the audit period tested had incorrect R2T4 calculations. All 3 modular students did not have R2T4 calculations performed correctly due to an incorrect evaluation of the total days in the students’ payment periods. For 2 of the students who unofficially withdrew, the University did not include both modules in the payment period, resulting in $5,226 of Federal Direct Loans (FDL) that should have been returned but were not. These were corrected during the audit process. For 1 student who officially withdrew, the wrong start and end dates were used causing the total days to be incorrect, resulting in $2,149 more FDL returned than required.
Cause: This was an oversight by the University due to the complexity of modular withdrawal rules.
Effect: Incorrect amounts of federal funding were returned.
Identification as repeat finding, if applicable: Not applicable.
Recommendation: We recommend that an individual in financial aid with the appropriate level of experience 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.