Audit 370962

Student Financial Assistance Cluster, ALN 84.063 Federal Pell Grant Program, ALN 84.268 Federal Direct Student Loans, U.S. Department of Education Program Year 2024–2025 Criteria or Specific Requirement – Special Tests and Provisions – Disbursements to or on Behalf of Students – Credit Balances – 34 CFR Section 668.164(h)(2) Condition – Two students’ Title IV funds credit balances were not refunded within 14 days Cause – Internal controls of the University’s student financial aid operations were not properly designed or effective to ensure refunds of credit balances were disbursed in a timely manner. Effect – The University did not refund credit balances to students timely resulting in the University holding funds without authorization. Questioned Costs – N/A Context – Out of the population of 2,746 student credit balances, a sample of 25 students was selected for testing. Of those 25 students, two students with credit balances were not refunded within the 14 day requirement. Our sample was not, and was not intended to be, statistically valid. Indication as a Repeat Finding – N/A Recommendation – Key operating processes and related internal controls related to refunds of credit balances should be designed and effectively operating to ensure refunds are made within the 14 day requirement. Views of Responsible Officials and Planned Corrective Actions – Management agrees with the finding. See attached corrective action plan.