Finding Text
Inaccurate Return of Title IV Funds (R2T4) Significant Deficiency
DEPARTMENT OF EDUCATION
ALN #: 84.268, 84.063
Federal Award Identification #: 2023-2024 Award Year
Condition: The University did not always calculate unearned Title IV funds correctly.
Criteria: 34 CFR 668.22
Questioned Costs: $3,572
Context: Out of 8 students tested, 2 students who withdrew during the audit period tested had incorrect R2T4 calculations. 1 traditional student had an incorrect Post-Withdrawal Disbursement (PWD) due to an incorrect last date of attendance (LDA) being used in the calculation resulting in the student being over-awarded $9 of Pell. 1 modular student did not have both modules included in the payment period in the R2T4 calculations resulting in $3,563 of Federal Direct Loans (FDL) that should have been returned but were not. These were not corrected during the audit.
Cause: This was an oversight by the University due to the complexity of modular withdrawal rules. Additionally, there was transition in key roles in the financial aid office during the 2023-2024 award year.
Effect: Incorrect amounts of federal funding were returned.
Identification as repeat finding, if applicable: See 2023-001
Recommendation: We recommend that an individual in financial aid with the appropriate level of experience periodically review modular students’ R2T4 calculations and returns to help ensure that internal controls over such process can operate effectively and achieve compliance.
Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.