Finding Text
Incorrect and Untimely Return of Title IV (R2T4) Funds Calculations Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2021-22 Financial Aid Year Condition: When students withdrew either officially or unofficially, the College did not always return unearned Title IV aid timely due to late dates of determination. Additionally, there were several returns with the wrong information used in the calculation, causing the wrong amounts to be returned to Title IV. Criteria: 34 CFR 668.22 Questioned Costs: $1,042 Context: Out of 35 students tested for timely returns, there were 11 students who had a date of determination beyond 14 days. These delays resulted in 5 students with returns of Title IV funds totaling $10,565 ranging from 12 to 108 days late. Additionally, out of 35 students tested for proper R2T4 calculation, there were 5 students that had an incorrect R2T4 calculation, resulting in the wrong amount of funds returned. The errors included the wrong total number of calendar days, last date of attendance, and amounts actually disbursed. This resulted in $1,559 of unsubsidized loans being returned that were not required to be returned and $1,042 in additional Pell grants that need to be returned by the University. Cause: Due to the complexity of the new modular regulations, turn over in staffing, and delays from other offices, the University was not able to comply with Title IV regulations for timely and accurate returns. Effect: Noncompliance with new R2T4 regulations regarding withdrawals for modular students, late returns to Title IV, and inaccurate amounts returned to Title IV. Identification as repeat finding, if applicable: 2021-001 Recommendation: We recommend 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. Additionally, we recommend the University work with other University offices to review Title IV regulations for attendance taking schools to work to achieve compliance on the timeliness of returns to Title IV. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.