Finding Text
2022-001 Untimely Returns of Title IV Funds and Inaccurate Returns of Title IV Funds (R2T4) 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 University did not always return unearned Title IV aid in a timely manner. There was one student who qualified for the modular exemption who had funds incorrectly returned. There were two students who did not have their Pell awards adjusted for lack of attendance after evaluating their withdrawals. There was one student who had an incorrect R2T4 calculation. Criteria: 34 CFR 668.22 Questioned Costs: $1,625 Context: Out of 51 students tested, 10 students had late returns ($23,175 FDL; $1,561 Pell) ranging from 9 to 231 days late. This was due to a lack of communication between the Registrar and Financial Aid offices that should be triggered by a student?s withdrawal. 1 student met the modular exemption from an R2T4 calculation due to successfully completing classes equivalent to the school?s definition of half-time enrollment, but an R2T4 was processed and funds were returned for the student ($2,932 FDL). This was corrected during the audit. 1 student had their Pell award adjusted for their attendance after an R2T4 had been processed with the incorrect Pell amount considered in the calculation. A second R2T4 was then processed with the correct Pell amount but used the net FDL amounts rather than the original disbursements, which caused an incorrect R2T4 calculation and an over-return of funds ($418 FDL). This was not corrected during the audit. 2 students did not have their Pell awards reduced for their attendance after their withdrawals were evaluated ($1,625 Pell). These were corrected during the audit. Cause: There was a lack of appropriate resources to perform an adequate review of modular withdrawals and a lack of communication between the Registrar and Financial Aid Offices. Effect: Title IV funds were not returned timely and Pell amounts were not appropriately adjusted for changes in enrollment. Identification as repeat finding, if applicable: not applicable Recommendation: We recommend that the financial aid office work closely with the registrar office and their third-party administrator to ensure that R2T4's are completed timely when students cease attendance during the term. We also recommend additional staff be allocated to the withdrawal process due to the high population of students (approx. 20%) who withdraw officially or unofficially. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.