Finding Text
Incorrect and Untimely Return of Title IV Funds Calculation (R2T4)
Material Weakness
DEPARTMENT OF EDUCATION
ALN #: 84.063, 84.268, and 84.007
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 accurately or timely.
Criteria: 34 CFR 668.22 and 34 CFR 690.63
Questioned Costs: $8,683
Context: Out of 23 students tested, 4 students had returns totaling $7,626 ranging from 18 to 123 days late. 1 student had $1,429 of federal direct loans returned but then incorrectly disbursed back to the student. These funds were returned back to the Department of Education in September 2024, 247 days late. 1 student had an R2T4 calculated but the unearned funds totaling $5,912 have not yet been returned. 6 students had miscalculations due to Pell not being recalculated for classes the student didn’t begin attendance prior to the R2T4 calculation which resulted in $1,342 of Pell under returned and $463 of federal direct loans (FDL) over returned. 4 students had miscalculations due to incorrect break days used resulting in $9 of Pell and $197 of FDL over returned.
Cause: Complexity of R2T4 calculations. Break days not properly factored into the calculation. Pell not properly recalculated prior to the R2T4 calculation for classes students didn't begin attendance in.
Effect: Noncompliance with R2T4 regulations
Identification as repeat finding, if applicable: 2023-004
Recommendation: We recommend an individual in financial aid with the appropriate level of experience periodically review standard and modular students’ R2T4 calendars, calculations and returns to help ensure that internal controls over such processes can operate effectively and achieve compliance. We further recommend the University adjust procedures to identify whether any Pell recalculations are required to be completed first before the R2T4 calculation is completed.
Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.