Finding Text
Return of Title IV (R2T4) Calculations Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063, 84.007, 84.379 Federal Award Identification #: 2021-22 Financial Aid Year Condition: The transmission of information from the online platform included activity that did not meet the definition of academic activity resulting in students not having a correct calculation performed. Additionally, the new modular regulations were not correctly applied. Criteria: 34 CFR 668.22 Questioned Costs: $29,626 Context: Out of 31 students, 16 students who withdrew during the audit period tested had an incorrect return or lack of return. Four students did not have academic activity as defined in the regulation for their online course, and all funds should be returned for that term. Nine students, of which the majority was online modular students not a meeting withdrawal exemption, did not complete past 60% of the semester and should have had funds returned. Two students did not have academic activity as defined in the regulations for an online course and should have had Pell recalculated. One student had an incorrect calculation due to an incorrect scheduled break calculation. Cause: The programming in the online platform for meeting the definition of academic activity was not accurately set up for the 2021-2022 award year and inadvertently included any activity such as just logging in. If the student attended a second module without completing the first module, all days of the first module were counted as attended instead of the actual attended days. There was an oversight in a calendar set up for a scheduled break as well as using the date of determination as the withdrawal date rather than the last date of attendance. Effect: Noncompliance with new R2T4 regulations regarding withdrawals from modular programs and incorrect returns. Identification as repeat finding, if applicable: Not applicable Recommendation: We recommend the University adjust the programming of the transmission of confirming attendance be specific to the regulations. We further recommend that federal aid is not disbursed to a student until academic activity in a class has been confirmed. We recommend the last date of academic activity be shared with the financial aid team systematically so calculations on all 0 credit students can be done timely. Should a student not begin attendance in an online class, we recommend the Pell be recalculated and returned immediately. We further recommend an additional layer of review on the calendar set up process. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.