Finding Text
FINDING 2022-002 ? R2T4 Calculation Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Pell Grant ALN and Program Expenditures: 84.063 ($729,843) Award Number: P063P213629 Federal Award Year: July 1, 2021 to June 30, 2022 Questioned Costs: $1,988 Condition Found: The R2T4 calculation was completed incorrectly for three of the five students in our R2T4 testing sample. The Federal Pell Grant funds disbursed were not adjusted for module courses that the students did not begin. In addition, the incorrect semester start date was used for two of the three students. Criteria: If a student withdraws before beginning attendance in all modules, the Federal Pell Grant eligibility must be recalculated. Cause: The R2T4 calculations were completed as if the students were enrolled in a traditional program instead of modules. The Federal Pell Grant recalculation was not completed for R2T4s calculated in the spring semester. Possible Asserted Effect: The R2T4 calculations were completed incorrectly. A combined total of $1,988 of Federal Pell Grant funds should be returned to the Department of Education. Repeat Finding: See Finding 2021-002 for a similar finding in the prior year. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: The Financial Aid Director should recalculate the R2T4s for the students in question. If a student did not begin a module, the Federal Pell Grant funds associated with that module should be returned to the Department of Education and excluded from aid that was disbursed or aid that could have been disbursed in the R2T4 calculation. The correct number of days in the semester should also be used. After the recalculations are complete, $1,988 of Federal Pell Grant funds should be returned to the Department of Education. The remaining R2T4 calculations completed by the College were reviewed and there were no additional errors. Management Response: Management agrees with the auditors? finding and their recommendation. The Financial Aid Director recalculated the R2T4s for the students in question. The Financial Aid Director determined that $1,988 of Federal Pell Grant funds should be returned for these students. On September 12, 2022, these funds were returned to the Department of Education. The remaining R2T4 calculations completed by the College were reviewed and there were no additional errors. The Financial Aid Director has improved R2T4 calculation procedures to ensure that the Federal Pell Grant is adjusted for module courses that a student does not begin attendance in before completing the R2T4 calculation.