Finding Text
Federal Agency: U.S. Department of Education Federal Program Name: Student Financial Assistance Cluster Assistance Listing Number: 84.007 ? Federal Supplemental Education Opportunity Grants 84.033 ? Federal Work Study Program 84.038 ? Federal Perkins Loans 84.063 ? Federal Pell Grant Program 84.268 ? Federal Direct Student Loans 84.379 ? Teacher Education Assistance for College and Higher Education Grants Award Period: July 1, 2021 to June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance ? Other Matters Criteria or specific requirement: The Code of Federal Regulations 34 CFR 668.22, states that when students withdraw from a school, institutions is required to determine earned and unearned portions of Title IV aid as of the date the student ceased attendance based on the amount of time the student spent in attendance. Up through the 60% point in each payment period or period of enrollment, a pro rate schedule is used to determine the amount of Title IV funds the students earned at the time of withdrawal. After the 60% point in the payment period or period of enrollment, a student has earned 100% of the Title IV funds the student was scheduled to receive during the period. Condition: During our testing it was noted that: 1) There was no review process in place for R2T4 calculations. 2) 9 of 40 students tested did not have an R2T4 calculation performed when necessary. 3) A net of $3,437 should have been returned to U.S. Department of Education based on individual students? R2T4 calculation but was not. This includes $10,060 of funds that were under returned offset by $6,624 in funds that were overall returned for respective students tested. Questioned costs: $3,437 Context: The University had instances where students left the school but the University did not perform a R2T4 calculation, calculated the R2T4 incorrectly or under/over return federal funds. Cause: The University has had significant turnover and there were no oversight over the withdrawal process and calculation of R2T4 which includes review of the R2T4 calculations. Effect: There are questioned costs of $3,437. Additionally, with no review in place, there could be potential for additional R2T4 amounts not being calculated appropriately. Repeat Finding: No. Auditors? Recommendation We recommend that the University implement a review process as it relates to R2T4 calculations. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.