Finding Text
2023-001 Treatment of Title IV Funds when a Student Withdraws (Significant Deficiency) Department of Education, SFA Cluster Criteria: Returns of Title IV funds are required to be deposited or transferred into the SFA account or electronic fund transfers initiated to the Department of Education as soon as possible, but no later than 45 days after the date the institution determines that the student withdrew in accordance with 34 CFR Section 668.173(b). Condition: Nine of seventeen students selected for withdrawal testing for the 2022-2023 academic year required a return of funds to the Department of Education. Calculation of R2T4 forms for two students were not completed when they were in fact due a refund. Cause: The University does not have adequate procedures in place to ensure students’ R2T4 are calculated properly. Effect: The University failed to return Title IV funds to two students when they were due a refund. Recommendation: We recommend the University put procedures in place to ensure R2T4 forms are filed correctly, and refunded aid due is credited to the student’s account. Management Response: The University is modifying the withdrawal procedure to provide more specific rules and instructions related to R2T4 requirements and timeliness. A shared document has been created in order to identify and monitor students who have withdrawn and are due a refund to ensure that refunds are made in a timely manner.