Finding Text
FINDING 2024-003
Federal Program Information: Federal Supplemental Education Opportunity Grants (ALN# 84.007), Federal Pell Grant Program (ALN #84.063), Federal Direct Student Loans (ALN# 84.268)
Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): N. Special Test and Provisions – Return of Title IV Funds: When a recipient of Title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV aid earned by the student as of the student’s withdrawal date. Additionally, returns of Title IV funds are required to be deposited or transferred into the student financial assistance account or electronic fund transfers initiated to the U.S. Department of Education no later than 45 days after the date the institution determines the student has withdrawn (34 CFR section 668.173(b)).
Condition: The University did not appropriately return the amount of unearned funds within the required timeframe.
Cause: The University correctly determined the amount of Title IV aid earned for a student, but due to administrative oversight, erroneously processed the return of funds.
Effect or Potential Effect: Returns of Title IV funds were not made within the required timeframe.
Questioned Costs: None.
Context: For 1 of 6 students tested, the amount calculated as due for return was not appropriately returned.
Identification as a Repeat Finding: No similar finding identified in the prior year.
Recommendation: We recommend the University enhance its procedures over return of Title IV funds to ensure unearned portions of federal aid are appropriately returned to the U.S. Department of Education.
Views of Responsible Officials: The error falls into the category of human oversight rather than fundamental misunderstanding of the regulation or timing of processes. The University correctly determined the
amount of Title IV aid earned for a student within the required timeframes, but due to administrative oversight, omitted one of the required awards from the return update on the student account. A regular review of R2T4 calculations will be developed to ensure that the actual returns match the return calculations.