Finding 504218 (2024-001)

Return of Title IV (R2T4) Calculations Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.268, 84.379 Federal Award Identification #: 2023-2024 Award Year Condition: R2T4 calculations were not consistently completed correctly. Criteria: 34 CFR 668.22 Questioned Costs: $13,868 Context: Out of 7 withdrawals tested, 5 had incorrect R2T4 calculations. 3 of these students had federal direct loans (FDL). incorrectly included in the R2T4 calculations as having been disbursed. The funds had not been disbursed to the student until after the University’s date of determination; therefore, funds should have been included as “could have been disbursed”. The University did not get the student’s approval for a post withdrawal disbursement of loans. 1 student had a TEACH grant included as having been disbursed but it should have been included as “could have been disbursed” resulting in a $1,322 over return of FDL and under return of a TEACH grant by the same amount. 1 student had an incorrect last date of attendance used for the withdrawal date in the R2T4 calculation resulting in $96 more in FDL returned than required. Cause: This was an oversight by the University. There were delays between the origination of awards to students versus when funds were posted and disbursed that were not caught during the R2T4 evaluation. Effect: Incorrect amounts of federal funding were returned. There were over-returns of FDL of $1,419, under-returns of FDL of $13,868, and under-returns of TEACH of $1,322. Identification as repeat finding, if applicable: Yes, 2023-001 Recommendation: We recommend the University add a check for whether awards have been posted to the student account prior to calculating the R2T4. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.