Finding Text
Federal Agency: U.S. Department of Education
Federal Program Name: Student Financial Assistance Cluster
Assistance Listing Number: 84.007 – Federal Supplemental Education Opportunity Grants
84.033 – Federal Work Study Program
84.038 – Federal Perkins Loans
84.063 – Federal Pell Grant Program
84.268 – Federal Direct Student Loans
84.379 – Teacher Education Assistance for College and Higher Education Grants
Federal Award Identification Number and Year: N/A
Pass-Through Agency: N/A
Pass-Through Number(s): N/A
Award Period: July 1, 2022 to June 30, 2023
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria or Specific Requirement: The Code of Federal Regulations 34 CFR 668.22, states that when students withdraw from a school, institutions are required to determine earned and unearned portions of Title IV aid as of the date the student ceased attendance based on the amount of time the student spent in attendance. Up through the 60% point in each payment period or period of enrollment, a pro rate schedule is used to determine the amount of Title IV funds the students earned at the time of withdrawal. After the 60% point in the payment period or period of enrollment, a student has earned 100% of the Title IV funds the student was scheduled to receive during the period.
Condition: During our testing it was noted that: 1) There was no review process in place for R2T4 calculations. 2) 14 of 60 students tested did not returned funds within 45 days. 3) 5 out of 60 students tested resulted in $4,974 of funds that should have been returned to the students based on individual students’ R2T4 calculation but was not.
Questioned Costs: $4,974
Context: The University had instances where students left the school but the University incorrectly performed a R2T4 calculation and under returned federal funds.
Cause: The University has had turnover and there was no oversight over the withdrawal process and calculation of R2T4 which includes review of the R2T4 calculations.
Effect: There are questioned costs of $4,974. Additionally, with no review in place, there could be potential for additional R2T4 amounts not being calculated appropriately.
Repeat Finding: Yes, Finding 2022-001.
Auditors’ Recommendation We recommend that the University implement a review process as it relates to R2T4 calculations.
Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with the audit finding.