Finding Text
Inaccurate and Untimely Returns to Title IV (R2T4) Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.007, 84.063 and 84.268 Federal Award Identification #: 2021-22 Financial Aid Year Condition: When students withdrew from a term either officially or unofficially, the College did not always return unearned Title IV aid timely or accurately. Criteria: 34 CFR 668.22 Questioned Costs: $19,131 Context: Out of 12 students tested, 6 students did not have R2T4?s completed timely in the amount of $20,672 returned late ranging from 39 to 422 days late. 5 of these were corrected in March 2023 as part of the audit process. 2 of the 6 students also had incorrect R2T4?s completed due to incorrect funds disbursed and number of days in the term resulting in an additional $42 in federal direct loans, $62 in Pell and $62 in FSEOG to be returned. Cause: There is no review being completed at the end of each term of students with federal aid and no passing grades to determine if an R2T4 is required. Effect: Return of Title IV funds were not performed timely and accurately. Identification as repeat finding, if applicable: 2021-002 Recommendation: We recommend that the financial aid office work closely with the registrar office and their third party administrator to ensure that R2T4s are completed timely when students cease attendance during the term. We also recommend that the financial aid office review all students with federal aid and no passing grades at the end of each term to ensure that if an R2T4 is required, it is completed timely. With multiple calendars used in R2T4 calculations, we recommend that a secondary review be completed when the R2T4 templates are set up to ensure the correct number of days are used in the calculations. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.