Finding Text
Incorrect and Late 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: The University did not correctly and timely return all required federal funds when a student withdrew or stopped attending. Criteria: 34 CFR 668.22 Questioned Costs: $2,649 Context: Out of 19 students, 4 students who withdrew during the audit period tested had funds returned late, and 2 students did not have funds returned that should have. One student was not offered a post-withdrawal disbursement when they should have been. Additionally, 6 calculations were not accurate calculations, of which 1 was a modular student. This student had an incorrect R2T4 calculation due to Pell. Pell of $812 should have been recalculated for failure to begin attendance in all classes awarded and those funds returned prior to completing the R2T4. These have not yet been corrected. Cause: There were multiple causes of the incorrect and late returns. There were incorrect calendars used, as the University has multiple campuses with different calendars. There was incorrect application of guidance within the attendance taking period before the student withdrew. One student did not have loan fees accounted for within the return, resulting in an under return. The University also experienced turnover in the financial aid department. Effect: Incorrect amounts of federal funding were returned. There were under-returns of Pell of $2,640 and under-returns of subsidized loans of $9. Title IV funds totaling $9,764 were returned late ranging from 3 to 156 days. Identification as repeat finding, if applicable: Yes, 2021-004 and 2020-003. Recommendation: We recommend that the University provide additional training and oversight on R2T4s, with specific emphasis on correct calendars, Pell recalculations, and dates attended. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.