Finding Text
Untimely and Inaccurate Returns of Title IV Funds (R2T4) and National Student Loan Data System Updates (NSLDS) Material Weakness
DEPARTMENT OF EDUCATION
ALN #: 84.268, 84.063
Federal Award Identification #: 2023-2024 Award Year
Condition: When students withdrew either officially or unofficially, the University did not always return unearned Title IV aid timely or accurately and did not update NSLDS correctly.
Criteria: 34 CFR 668.22, 34 CFR 685.309(b)
Questioned Costs: $3,523
Context: Out of 23 students, 3 students had inaccurate returns, resulting in underawards of Pell of $3,146 and overawards of loans of $3,523. Out of the same 23 students, 4 students who withdrew during the audit period tested had a total of approximately $11,759 funds returned late ranging from 7 to 73 days. Additionally 2 students have funds that still need to be returned. Additionally, two students who withdrew were not updated correctly in NSLDS.
Cause: There were staffing challenges during the year as well as delays in processing R2T4’s corrections even though the calculations were completed timely. While the calculations were completed correctly, the actual amounts returned included the funds that both the school and student were responsible for returning to the Department of Education. The date of determination was used for the enrollment reporting updates instead of the date of withdrawal.
Effect: Returns of Title IV funds were not performed timely or accurately.
Identification as repeat finding, if applicable: Yes, 2023-002 and 2022-001
Recommendation: We recommend that additional training be completed on R2T4 processing and related updates to NSLDS for withdrawals. We also recommend that financial aid office work with the registrar to put procedures in place for timely notification when students stop attending and that financial aid process the R2T4’s timely when required.
Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.