Finding Text
Return of Title IV Funds
Program: Various
CFDA Number: Various
Federal Agency: U.S. Department of Education
Federal Award Identification Number: Various
Federal Award Year: May 31, 2024
Criteria: When a recipient of Title IV grant or loan assistance withdraws from an institution during a payment period, Title IV regulations (34 CFR 668.22) require the University to determine the amount of Title IV grant or loan assistance that the student earned as of the withdrawal date and return the unearned portion of the grant or loan to the Title IV program as soon as possible but no later than 45 days after the withdrawal date.
Condition/Context: The federal aid refunds for 1 out of 3 tested of the students tested was not returned within 45 days from the withdrawal date. The sample was not statistically valid.
Cause: The University's procedures for the return of Title IV funds were not followed. In addition, there was no independent review of the refund calculation.
Effect: The University was in possession of funds belonging to the federal government longer than allowed.
Questioned Costs: Not applicable.
Recommendation: The University should increase emphasis on timely processing of refund transactions.
Management Response: The University agrees with this finding. This error occurred while there was a transition period in the financial aid office due to turnover of financial aid staff. The current director performs the R2T4s and is working to have a back-up employee trained.