Finding Text
Incorrect Modular Return of Title IV Funding Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063, and 84.007 Federal Award Identification #: 2021-2022 Financial Aid Year Condition: The University returned Title IV funds for one modular student withdrawal that did not require funds to be returned based on the completion rate. The student completed past the 49% required by the new modular withdrawal guidance so no R2T4 should have been done. Criteria: 34 CFR 668.22(j) Questioned Costs: $-0- Context: One student out of eight was correctly identified as an unofficial withdrawal. The exemptions were not accurately applied and an incorrect return of $4,339 was initially made. This was discovered and corrected during the audit process. Cause: The new R2T4 regulations regarding withdrawals from modular programs which were effective July 1, 2021, were not correctly applied to this student. Effect: Noncompliance with new R2T4 regulations regarding withdrawals from modular programs. Identification as repeat finding, if applicable: Yes, 2021-001. Recommendation: We recommend when the University runs the listings of all withdrawals and all 0 credits each semester that the NAFSAA decision tree related to modular students be applied and retained with each student. We also 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. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.