Finding Text
Late Return of Title IV (R2T4) DEPARTMENT OF EDUCATION
ALN #: 84.063, 84.007, 84.268, and 84.379
Federal Award Identification #: 2022-23 Financial Aid Year
Condition: The University did not properly assess R2T4s under the modular withdrawal regulations that went into effect July 1, 2021. The University had an incorrect assumption of the 49% exemption for zero credit students in modular programs.
Criteria: 34 CFR 668.22
Questioned Costs: $2,954
Context: Out of 25 students who withdrew during the audit period, 2 students in modular programs did not have an R2T4 calculated and unearned funds returned timely. $2,954 in Federal Direct Loans were returned as part of the audit process. The University completed additional review of their students in modular programs who withdrew officially or unofficially and no other late returns were identified.
Cause: Complexity of modular withdraw regulations. University originally assessed the students as having met an exemption when the exemption did not apply.
Effect: Unearned Title IV funds not returned timely.
Identification as repeat finding, if applicable: 2022-001
Recommendation: We recommend that the financial aid office continues to attend compliance training on the modular regulations and consult with Department of Education on the implementation of new regulations where necessary.
Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.