Finding Text
2023-004 Significant Deficiency: The University Did Not Timely Complete Return to Title IV Funds (U.S.
Department of Education, William D. Ford Direct Loan Program, ALN #84.268; Federal Pell Grant
Program, ALN #84.063)
Criteria: In accordance with 34 CFR 668.22(e), the amount of title IV grant or loan assistance that is
earned by the student is calculated by (i) determining the percentage of title IV grant or loan
assistance that has been earned by the student and (ii) applying the percentage of the total amount
of title IV grant or loan assistance that was disbursed and could have been disbursed to the student,
or on the student’s behalf for the payment period or period of enrollment as of the student’s
withdrawal date.
Statement of Condition: During the audit, it was noted that the University did not complete an R2T4
for unofficial withdrawal students in the Spring semester until during the audit and therefore did not
calculate the percentage of aid that was earned by the student.
Questioned Costs: This finding is monetary in nature. In the instances noted in testing, the total error
is $1,851 in over-award. Extrapolation of this monetary error was not necessary as the 11 withdrawal
students tested as part of the 2023 audit were the entire withdrawal population for the period under
audit.
Perspective Information: The audit included a detailed testing of 11 withdrawal student files, of
which this significant deficiency applies to 3, indicating an error rate of 27.3%.
Cause and Effect: For unofficial withdrawals, an R2T4 was not performed per the instructions
described in the Student Financial Aid Handbook in certain instances due to lack of oversight by the
director. By not performing an R2T4, the University did not compute the percentage of aid that was
earned by the student and this may result in monetary error.
Recommendation: The University should ensure that the R2T4 calculations are being completed
timely.
View of Responsible Officials: When processing the R2T4s for these three students the Director
looked at the current date on the form and processed them according to the current date and not the
date of withdrawal. For these students due to the date difference went from being in the greater
than 60% category where a R2T4 was not necessary to now needing one processed. The University
has implemented an audit process whereby the date entered can be more easily verified to ensure
accuracy. This date and the withdrawal date or LDA are now added to a withdrawal form that is
shared between departments so that any variance will be easily identified.