Finding Text
Finding 2024-002 – Student Financial Assistance Return of Title IV Funds
Grantor: U.S. Department of Education
Program Name: Student Financial Assistance Cluster
Award Names: Federal Direct Loan Program
Award Year: 7/1/2023 - 6/30/2024
Award Number: Not applicable
Assistance Listing Number: 84.268
Criteria:
The University is subject to compliance requirements pertaining to the timely return of Title
IV funds under Federal Student Aid (“FSA”) programs within the Student Financial Assistance cluster.
Under 34 CFR 688.22 (j) (1), an institution must return the amount of title IV funds for which it is responsible as soon as possible but no later than 45 days after the date of the institution's determination that the student withdrew.
Condition:
Through our testing of a sample of 6 students, we noted that for one student, direct unsubsidized and graduate plus direct loan funds were not returned for 67 days.
Questioned Costs:
None
Cause:
The registrar originally processed the student's leave of absence using an incorrect last date of attendance which then caused a delay in performing a Return of Title IV calculation and a delay in return of funds.
Effect:
The funds to be returned belong to the federal government and thus should be returned to prevent a direct loan cash draw balance that is greater than the amount of disbursements made to students.
Recommendation:
We recommend that the Registrar, on a regular basis, provide the daily Leave of Absence and Withdrawal report to the Student Finance office. This report should include the list of students with enrollment changes that includes student name, Student ID Number, date of change, and type of change. We further recommend the total return of Title IV calculations are reviewed by the Director of Student Finance or the Director of Student Aid Operations to ensure that the details provided on the registrar’s report are accurately reflected in the return of Title IV funds application.