Finding 1077506 (2023-003)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-09-30

AI Summary

  • Issue: The University failed to return $17,809 in uncleared refund checks to students within the required 240 days.
  • Requirement: Compliance with 34 CFR 668.164(l)(3) mandates returning uncashed checks to the Secretary within the specified timeframe.
  • Follow-up: Establish a monitoring policy for uncleared checks and ensure checks older than 240 days are returned to the Secretary.

Finding Text

Federal Program: 84.268 Criteria: Under 34 CFR 668.164(l)(3), checks sent to students that are not returned to the institution (i.e., not cashed) must be returned to the Secretary no later than 240 days after the date the checks were issued. Condition: For the year under audit, the University reported $17,809 of outstanding (uncleared) refund checks to students in excess of 240 days. Cause: Management was unaware of the 240 day requirement. Effect: The University did not comply with 34 CFR 668.164(l)(3). Context: N/A. Recommendation: The University should implement a policy that future uncleared student checks are monitored for compliance with the 240 day requirement and one or more procedures that provides reasonable assurance of complying with this policy (possibly as part of reviewing bank reconciliations). Also, all checks older than 240 days should be sent (returned) to the Secretary. Management’s View: See Corrective Action Plan.

Categories

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Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $3.19M