Finding Text
Inaccurate and Untimely Returns of Title IV Funds (R2T4) Material Weakness
DEPARTMENT OF EDUCATION
ALN #: 84.268, 84.063, 84.007, and 84.379
Federal Award Identification #: 2022-2023 Financial Aid 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: $12,304
Context: Out of 51 withdrawal students tested, we noted a total of 11 students that had a late return of Title IV aid and their return amounts totaled $12,304. For these 11 returns, 6 of them were inaccurate resulting in 4 students under awarded $1,727 and 2 students over awarded $514. We noted an additional 5 students with inaccurate but timely returns resulting in the students being under awarded $8,786.
Cause: We noted this was caused by continued challenges with the complexity of modular withdrawal regulations, particularly due to a high number of students with all failing grades in these programs. Additionally the financial aid office is not receiving attendance details timely to process returns timely. The inaccurate returns were caused by using incorrect calendars or the system taking off all aid and these amounts were not included in the amounts that could have been disbursed in the calculations.
Effect: Incorrect amount of unearned or earned Title IV funds returned and untimely returns.
Identification as repeat finding, if applicable: 2022-002
Recommendation: We continue to recommend that the financial aid office work with the registrar office and those monitoring attendance to ensure that students who stop attending after 2 weeks are followed up on timely to determine if R2T4's are required and ensure that funds are returned within the required 45 days. We also continue to recommend the University have a secondary review of each calendar set up for R2T4 calculations to ensure the correct number of days is used.
Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.