Finding Text
Credit Balances Not Paid Out in 14 days DEPARTMENT OF EDUCATION
ALN #: 84.268, 84.063
Federal Award Identification #: 2023-2024 Award Year
Condition: The Master’s University & Seminary and Subsidiary is required to pay out credit balances created by federal aid within 14 days of the balance being created.
Criteria: 34 CFR 668.164(h)
Questioned Costs: $0
Context: Out of 60 students tested for paying out credit balances created by disbursing Title IV funds, there were 2 students who had a credit balance not paid out timely and the Master’s University and Seminary did not have authorization from the student to hold the credit balance. They were eventually paid out or applied to the following term’s tuition and fees.
Cause: While there is a process to identify and pay out Title IV credit balances timely, the reports generated but it appears that it isn’t frequent enough as some were
Effect: Noncompliance with the Department of Education’s cash management regulations
Identification as repeat finding, if applicable: N/A
Recommendation: We recommend The Master’s University & Seminary and Subsidiary refine their 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.