Finding Text
FINDING 2022-004 ? R2T4 Calculation Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Direct Student Loan Program Federal Pell Grant Program AL# and Program Expenditures: 84.268 ($451,732) 84.063 ($279,693) Award Number: P268K227533 P063P227533 Federal Award Year: July 1, 2021 to June 30, 2022 Questioned Costs: $4,227 Condition Found: The R2T4 was not calculated correctly for two of the sixteen students in the compliance testing sample. A separate sample was selected to test additional R2T4 calculations. The R2T4 was not calculated correctly for two of the three students in the R2T4 testing sample. Between the two samples, all of the R2T4s completed during the year were reviewed. Criteria: For a student who is administratively withdrawn due to excessive absences, the date the student withdrew would be the date the student exceeded the maximum number of absences. If a student enrolled in a module course does not begin one or more of the module courses, the Federal Pell Grant funds for that course must be returned to the Department of Education and excluded from the aid disbursed amount in the R2T4 calculation. Cause: The Financial Aid Director believed the Federal Pell Grant adjustment for a module not begun was automatically included in the R2T4 calculation. This part of the calculation is manual and not included in the R2T4 form. The Financial Aid Director received incorrect information regarding calculating the withdraw date for students who are administratively withdrawn for excessive absences. Possible Asserted Effect: The R2T4 calculations were not completed accurately. Between the four students, $3,381 of Federal Pell Grant Funds and $846 of Federal Direction Loan Funds were returned to the Department of Education on October 6, 2022. Repeat Finding: See finding 2021-006 for a similar finding related to R2T2 calculations in the prior year. While both years had R2T4 calculation issues, the causes of the errors were different. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: The R2T4s that were not calculated correctly should be recalculated. A total of $3,381 of additional Federal Pell Grant Funds and $846 of Federal Direct Loan Funds should be returned to the Department of Education. Procedures should be improved to ensure that R2T4s are calculated correctly. Management Response: All of the R2T4s completed during the year were recalculated in October 2022. On October 6, 2022, $3,381 of Federal Pell Grant Funds and $846 of Federal Direct Loan Funds were returned to the Department of Education. Procedures will be improved to ensure that R2T4s are calculated correctly.