Finding Text
Untimely Returns of Title IV Funds (R2T4)Significant Deficiency
DEPARTMENT OF EDUCATION
ALN #: 84.268, 84.063
Federal Award Identification #: 2022-2023 Award Year
Condition: When students withdrew either officially or unofficially, the University did not always return unearned Title IV aid timely or accurately.
Criteria: 34 CFR 668.22
Questioned Costs: $0
Context: Out of 8 students, 3 students who withdrew during the audit period tested had a total of $7,790 funds returned late ranging from 35 to 83 days. For 1 of these students, the University originally had incorrectly returned all of the student’s Pell but no FDL so the net funds returned late were $594. 2 of these students had a total of $983 more in FDL returned than the required.
Cause: Staffing challenges. Delays in processing R2T4’s even though the calculations were completed timely. While the calculations were completed correctly, the actual amounts returned included the funds that both the school and student were responsible for returning to the Department of Education.
Effect: Returns of Title IV funds were not performed timely.
Identification as repeat finding, if applicable: Yes, 2022-001
Recommendation: We recommend that additional training be completed on R2T4 processing. We also recommend that financial aid office work with the registrar to put procedures in place for timely notification when students stop attending and that financial aid process the R2T4’s timely when required.
Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.