Finding Text
Return of Title IV Funds (R2T4) Calculation Errors
Finding Type: Significant deficiency and reportable noncompliance with laws and regulations.
Criteria and Condition: Per federal regulations, student refunds must be returned to the borrower within 14 business days. A refund of $215 was owed to a student for Summer 2024 was not disbursed as of July 24, 2024, which exceeded the 14-day requirement.
Context: The student was owed a refund for the Summer 2024 term, but the disbursement was delayed beyond the required timeframe.
Cause: The College did not have adequate processes in place to ensure timely refunds to students.
Effect: The College failed to comply with the requirement to return funds within 14 business days, resulting in a delayed refund to the student.
Recommendation: We recommend the College review its refund procedures and implement controls to ensure refunds are disbursed within the required time frame.
View of Responsible Officials and Planned Corrective Actions: The College will review its internal processes for handling refunds and ensure that future refunds are processed within the 14-day window. Training will be provided to the responsible staff to improve compliance with regulations.