Finding Text
Inaccurate Return of Title IV Funds (R2T4)
Material Weakness
DEPARTMENT OF EDUCATION ALN #: 84.268 Federal Direct Loans, 84.063 Federal Pell Grants, and 84.007 Federal Supplemental Education Opportunity Grant Program
Federal Award Identification #: 2022-2023 Financial Aid Year
Condition: When students withdrew either officially or unofficially, the College did not always accurately return unearned Title IV aid.
Criteria: 34 CFR 668.22
Questioned Costs: $7,324
Context: Out of 18 students tested for accurate return of Title IV funding, there were 6 students whose return to Title IV amount did not reflect the amount calculated on the Return to Title IV form. This oversight resulted in an additional $1,429 in PLUS Loans, $1550 in Subsidized Loans, $2,970 in Unsubsidized Loans, and $1,375 in Pell to be returned to the Department of Education (the Department). The College returned all funds to the Department during the course of the audit. Additionally, of these 18 students, there were 3 whose returns were late.
Cause: Oversight by the College.
Effect: Incorrect amounts of federal funding were returned.
Identification as repeat finding, if applicable: Not applicable.
Recommendation: We recommend the College implement a review of returns on a regular basis to ensure that the amounts calculated on the Return to Title IV form reconcile with what was returned on the student’s account and what was returned to the Department.
Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.