Finding Text
Return of Title IV (R2T4) 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 University 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: $3,257 Context: Out of 15 students tested for timely returns, there were 4 students who had a date of determination beyond 14 days. These delays resulted in 3 students with returns of Title IV funds totaling $5,597 ranging from 8 to 246 days late. Additionally, out of 15 students tested for proper R2T4 calculation, there were 2 students that had an incorrect R2T4 calculation. One was due to the wrong number of days in the term in the calculation, resulting in the wrong amount of funds returned. The other error was due to the student not meeting a modular withdrawal exemption, therefore, there should have had a return made. However, the University did not complete an R2T4 until the audit. The total calculation errors resulted in an excess of $23 returned that was not necessary. Between the late returns and the calculation errors, total questioned costs were $3,257. All errors were corrected during the course of the audit. Cause: Due to the complexity of the new modular regulations 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 from modular programs, inaccurate amount returned, and late return of funds to Title IV. Identification as repeat finding, if applicable: Not applicable. 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.