Finding Text
Untimely Returns of Title IV Funds (R2T4)Significant Deficiency
DEPARTMENT OF EDUCATION
ALN #: 84.268
Federal Award Identification #: 2022-2023 Financial Aid Year
Condition: When students withdrew whether officially or unofficially, the Seminary did not always return unearned Title IV aid timely.
Criteria: 34 CFR 668.22
Questioned Costs: $6,096
Context: Out of 5 students who withdrew during the audit period tested 3 had funds returned late. One official withdrawal for summer 2023 had $2,336 returned 35 days late. Two unofficial withdrawals were not performed by the Seminary although the student withdrew before the 60% date for the semester. These two were identified during the audit process and $6,096 were returned in October 2023 resulting in the funds being returned between 106 and 230 days late. All students who withdrew were tested.
Cause: The system for R2T4 tracking is not sufficient. High turnover in the Financial Aid department and the new Director of Financial Aid does not have in-depth training on R2T4 tracking or calculations as they are new to the position.
Effect: Returned of Title IV funds were not performed timely.
Identification as repeat finding, if applicable: 2022-002
Recommendation: We recommend that the Seminary reviews the R2T4 tracking system to make sure all students that withdrawal are being properly tracked along with the last day of attendance. If the tracking system is deemed to be insufficient, we recommend implementing a new tracking system and put in place a procedure to review students with no passing grades and Title IV aid to determine if an R2T4 for an unofficial withdrawal is required. We also recommend that the Seminary set aside appropriate funds and time for the Director of Financial Aid to attend R2T4 training and professional development so they have the the appropriate knowledge and skill to manage R2T4 calculations.
Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.