Finding Text
Federal Program Information: Student Financial Assistance Cluster (Various ALN #’s)
Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): Special Tests and Provisions – Return of Title IV Funds: When a recipient of a Title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV aid earned by the student as of the student’s withdrawal date. If the total amount of Title IV assistance earned by the student is less than the amount that was disbursed to the student or on his or her behalf as of the date of the institution’s determination that the student withdrew, the difference must be returned to the Title IV programs as outlined in this section and no additional disbursements may be made to the student for the payment period or period of enrollment. (34 CFR 668.22(a)(1) through (a)(5)). Once a student’s withdrawal date is determined the institution needs to calculate the percentage of the payment period or period of enrollment completed. The percentage of payment period or period of enrollment completed represents the percentage of aid earned by the student.
An institution must return the amount of Title IV funds for which it is responsible under paragraph (g) of this section as soon as possible but no later than 45 days after the date of the institution's determination that the student withdrew as defined in paragraph (l)(3) of this section (34 CFR 668.22(j)(1).
Condition: Instance was identified where an incorrect unearned amount of Title IV funds were returned to the Department of Education (the “ED”) beyond the 45 day required timeframe.
Cause: Lack of administrative oversight with respect to Return of Title IV (“R2T4”) calculation.
Effect or Potential Effect: Error in Title IV funds amount and delay in returning to the ED.
Questioned Costs: Amount below reportable threshold.
Context: For 1 of 2 students selected for testing, the College did not return the correct amount to the ED within the required timeframe.
Identification as a Repeat Finding: This is a repeat finding of prior year finding 2022-008.
Recommendation: We recommend the College utilize R2T4 worksheets, complete timely review of R2T4 calculations, and return any Title IV funds to the ED within the required timeframe.
Views of Responsible Officials: