Finding Text
Inaccurate and Untimely Return of Title IV (R2T4) Funds
Significant Deficiency
DEPARTMENT OF EDUCATION
ALN #: 84.268, 84.063 Federal Award Identification #: 2022-2023 Financial Aid Year
Condition: When students withdrew either officially or unofficially, the College did not always return unearned Title IV aid timely. Additionally, the College did not always calculate unearned Title IV funds correctly.
Criteria: 34 CFR 668.22
Questioned Costs: $0
Context: Out of 8 students tested for accurate and timely R2T4s, there were 1 late return, 1 post withdraw disbursement was not made and 1 inaccurate return. $3,688 of federal direct loans was returned 15 days late. The post withdraw disbursement of $36 in Pell had not been completed as of the end the audit. Additionally, the inaccurate return resulted in an additional $87 of Pell post withdraw disbursement owed to the student due to the wrong last date of attendance in the R2T4 calculation.
Cause: This was an oversight by the College.
Effect: Incorrect amount of unearned Title IV funds returned and returns of Title IV funds were not performed timely.
Identification as repeat finding, if applicable: 2022-003
Recommendation: We recommend an individual in financial aid with the appropriate level of experience periodically review student's 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.