Finding Text
Finding 2023-001:
Student Financial Assistance Cluster - #84.007 Federal Supplemental Educational Opportunity Grants; #84.033 Federal Work-Study Program; #84.038 Federal Perkins Loan Program; #84.063 Federal Pell Grant Program; #84.268 Federal Direct Student Loans; #84.379 Teacher Education Assistance for College and Higher Education Grants (TEACH Grants).
Criteria:
Institutions are required to perform a calculation for returnable Title IV funds (federal financial aid) (R2T4 calculation) for any student that received federal financial aid and ceases to be enrolled prior to the end of the semester. Institutions are required to exclude institutionally scheduled breaks of five or more consecutive days when calculating the percentage of payment period or period of enrollment completed by the student to determine the percentage of Title IV Federal Student aid earned (34 CFR § 668.22(f)).
Condition:
Our audit procedures identified the University did not exclude the 2023 Spring mid-term break of five consecutive days from the percentage of payment period or period of enrollment completed by the student for the 16 student withdrawals subject to the R2T4 calculation for the Spring 2023 semester.
Cause:
An error was made and not detected and corrected in determining of the number of days in the semester for the Spring R2T4 calculations.
Effect:
The R2T4 calculations for the 2023 Spring semester resulted in overstatements of amounts due to the Department of Education. The amount overpaid to the Department of Education totaled $1,009.
Questioned Costs:
None.
Auditors’ Recommendation:
We recommend the University ensure personnel involved with R2T4 calculations receive appropriate training and update the policies and procedures manual to require formal review and approval of all R2T4 calculations.
Views of Responsible Officials:
Management agrees with the recommendation and has developed additional procedures to ensure institutionally scheduled breaks are being considered in determining a student’s percentage of Title IV aid earned. The procedures include participation in training webinars and updates to the policies and procedures manual with detailed instructions on how to calculate the number of days in the semester and formal review and approval of all R2T4 calculations.