Finding Text
Federal Agency: U.S. Department of Education
Federal Program Name: Student Financial Assistance Cluster
Assistance Listing Number: 84.007 – Federal Supplemental Education Opportunity Grants
84.033 – Federal Work Study Program
84.038 – Federal Perkins Loans
84.063 – Federal Pell Grant Program
84.268 – Federal Direct Student Loans
84.379 – Teacher Education Assistance for College and Higher Education Grants
Federal Award Identification Number and Year: N/A
Pass-Through Agency: N/A
Pass-Through Number(s): N/A
Award Period: July 1, 2023 to June 30, 2024
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria or Specific Requirement: The Code of Federal Regulations 34 CFR 668.22, states that when students withdraw from a school, institutions is required to determine earned and unearned portions of Title IV aid as of the date the student ceased attendance based on the amount of time the student spent in attendance. Up through the 60% point in each payment period or period of enrollment, a pro rate schedule is used to determine the amount of Title IV funds the students earned at the time of withdrawal. After the 60% point in the payment period or period of enrollment, a student has earned 100% of the Title IV funds the student was scheduled to receive during the period.
Condition: During our testing we noted that following errors in R2T4 reporting:
1) 5 of the 60 students not returned funds with in 45 days.
2) 2 out of 60 students tested did not have R2T4 calculations performed despite the fact that they attended classes and had all their aid returned. This resulted in $71.81 that was earned by the students improperly being returned.
Questioned Costs: $71.81
Context: The University did not properly calculate R2T4's or timely return funds in all cases where it should have.
Cause: The University did not have proper procedures in place to correctly calculate and timely return appropriate funds.
Effect: Funds were not disbursed to students as they should have been and funds were not timely returned to the Department.
Repeat Finding: Yes
Auditors’ Recommendation: We recommend that the University implement a review process as it relates to R2T4.
Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with the audit finding.