Finding Text
Finding 2022-005 ? Calculation of Return of Title IV Funds (R2T4) (Not a Repeat Finding) Federal Agency: U.S. Department of Education Pass-through Entity: None Federal Program: Student Financial Assistance Cluster (Federal Assistance Listing No.?s 84.007, 84.033, 84.038, 84.063, 84.268, 84.379) Requirement: Special Tests and Provisions Criteria: 34 CFR 668.22(h) specifically details the responsibility of the student to return unearned aid once the institution has allocated the unearned funds for which the College is responsible for in accordance with 34 CFR 668.22(g). Condition: During the course of our audit, we selected a sample of 8 students who withdrew or did not maintain attendance during a payment period to test for proper R2T4 calculations. One student?s R2T4 calculation was not completed correctly resulting in the College returning more funds than required. Cause of Condition: The College did not complete the entire R2T4 calculation and stopped at Step 6 after determining the amount the school must return. Effect: The College returned both the institutional and student portions of the unearned funds. However, the student should have been responsible for their own portion. Therefore, the College incurred additional cash disbursement than necessary. The student?s portion was $100. Questioned Costs: None. Perspective Information: The College only had withdrawals totaling 26 students for the fiscal year with many of those not receiving Title IV funding. Therefore, the impact of the incorrect calculation is limited. Recommendation: We recommend the College ensure it is completing all steps of the R2T4 calculation to confirm the calculation is complete and accurate. As stated above in Finding 2022-004, a secondary review of the calculation should identify errors in calculations and reduce the risk of the return being incorrect.