Audit 395184

Condition: Eleven checks totaling $6,107 related to student refunds of Title IV federal financial aid were outstanding more than 240 days. Criteria: The Code of Federal Regulations, 34 CFR 668.164(h)(2) states that an institution that attempts to disburse funds by check and the check is not cashed, the institution must return the funds to the U.S. Department of Education no later than 240 days after the date the check was issued. Cause: The University does not have adequate procedures in place to ensure that uncashed student refund checks are identified and returned to the U.S. Department of Education within the required 240-day timeframe Effect: The University was not in compliance with Department of Education requirements related to the timely return of Title IV funds associated with uncashed student refund checks outstanding for more than 240 days. Repeat Finding: Yes – 2024-002. Recommendation: We recommend the University strengthen its internal controls over the monitoring of outstanding student refund checks by implementing procedures to periodically review uncashed checks and ensure that any Title IV funds outstanding for more than 240 days are promptly returned to the U.S. Department of Education in accordance with federal requirements. View of Responsible Officials: Waldorf University was surprised by this finding. In response, several meetings were held, and a clear process was designed to mitigate issues related to uncashed checks. The University accepts the findings and believes the new software will aid in producing accurate reports. Waldorf University is also reorganizing its departmental structure to strengthen oversight and ensure a thorough review of financial reports and account records.