Finding Text
Inaccurate and Untimely Returns of Title IV Funds (R2T4) Material Weakness
DEPARTMENT OF EDUCATION
ALN #: 84.268, 84.063, 84.007
Federal Award Identification #: 2022-2023 and 2023-2024 Financial Aid Year
Condition: When students withdrew from Word of Life, unearned Title IV aid was not always returned timely or accurately.
Criteria: 34 CFR 668.22
Questioned Costs: $0
Context: Out of 15 students tested, Word of Life returned $11,805 of unearned Title IV funds late, ranging from 5 to 310 days, for 5 students. Additionally, Word of Life returned $2,037 of Title IV funds for one student who did not return for the next term and did not require funds to be returned.
Cause: This was an oversight by Word of Life.
Effect: Returns of Title IV funds were not performed timely or accurately for Spring of 2023 (2022-2023 Financial Aid Year) and Fall of 2023 (2023-2024 Financial Aid Year).
Identification as repeat finding, if applicable: Not applicable.
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 a process can operate effectively and achieve compliance.
Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.