Finding Text
Inaccurate and Untimely Return of Title IV Funds (R2T4) Significant Deficiency
DEPARTMENT OF EDUCATION
ALN #: 84.268, 84.063
Federal Award Identification #: 2023-2024 Award Year
Condition: For students withdrawn in the Spring 2024 semester, Life Pacific University did not always return unearned Title IV aid timely or accurately.
Criteria: 34 CFR 668.22
Questioned Costs: $4,036
Context: Out of 8 students tested, 2 students who withdrew during the Spring 2024 term had R2T4 funds returned late, ranging from 92 to 158 days. The first student had an incorrect R2T4 calculation performed due to federal loans being included in the calculation when the student was ineligible to receive them, resulting in an under return of $1,285 of Pell. The second student did not have an R2T4 performed even though they withdrew during the first module, and Pell was not adjusted to reflect the correct enrollment status. This resulted in an under return of $2,751 of Pell. Another student had a correction to the R2T4 made by Life Pacific University during the Spring term resulting in an additional $159 post-withdrawal disbursement, however this was not paid out until the audit. All of these returns were corrected during the audit.
Cause: Life Pacific University went through unexpected turnover at the beginning of the Spring 2024 term. All issues noted were isolated to this term.
Effect: Returns of Title IV funds were not performed timely or accurately.
Identification as repeat finding, if applicable: Not applicable.
Recommendation: We recommend an individual in financial aid with the appropriate level of experience periodically review R2T4 calculations and returns to help ensure that internal controls over such process can operate effectively and achieve compliance.
Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.