Audit 396488

Credit Balances Held Beyond Payment Period Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268 Federal Direct Loans and 84.063 Federal Pell Grants Federal Award Identification #: 2024-2025 Financial Aid Year Condition: The University is required to pay out credit balances created by federal aid within 14 days of the balance being created. Additionally, they are not allowed to hold credit balances beyond the end of the payment period. Criteria: 34 CFR 668.164(h) Questioned Costs: $0 Context: Out of 40 students tested for holding credit balances, there were three students who had a credit balance created by federal direct loans and federal pell that were not paid out to the student within 14 days, and two that were not paid out before the end of the payment period. They were refunded to the students ranging from 6 to 163 days late. Cause: There was turnover in staffing, and the process in place to identify credit balances created by federal aid within the 14 day time frame and again at the end of the payment period was not consistently applied. Effect: Noncompliance with the Department of Education’s cash management regulations Identification as repeat finding, if applicable: Not applicable Recommendation: We recommend the University design and implement a process to identify credit balances created by federal aid and disburse them to students within 14 days of the balance being created and to pay out all credit balances at the end of the payment period. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Need Analysis Other Matter DEPARTMENT OF EDUCATION ALN #: 84.268 Federal Direct Student Loans Federal Award Identification #: 2024-2025 Financial Aid Year Condition: One student was not appropriately awarded subsidized loans based on need. Criteria: 34 CFR 685.203 Questioned Costs: $3,487 Context: Out of 40 students tested, 1 student was not awarded aid appropriately based on need analysis. This student was awarded over the need calculation by $3,487 in subsidized loans. This student was not corrected during the audit process. Cause: There was turnover in staffing during the year. The review process in place to ensure loan amounts awarded matched student eligibility did not capture all items correctly. Effect: Incorrect amounts of subsidized loans were disbursed which affects the amount and timing of interest the student must repay. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend that the University set up reports in the student information system to periodically check for over or under awarding of need based federal aid. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.