Finding Text
FINDING 2024-001: UNPAID CREDIT BALANCE
FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION
PROGRAM NAME: FEDERAL DIRECT LOAN PROGRAM
ALN: 84.268
FEDERAL AWARD YEAR: 2023-2024
Compliance Requirement: Special Tests and Provisions (N.) - Disbursements
Criteria: An institution must pay credit balances to students within fourteen days of the creation of such credit or
within fourteen days of the date the institution performs the Return calculation for withdrawn students. When a
valid waiver has been obtained, an institution must pay the remaining balance on loan funds by the end of the loan
period and any remaining other Title IV program funds by the end of the last payment period in the award year for
which the funds were awarded (34 CFR 668.164 and 668.165).
Condition: We tested forty files and one credit balance was not paid back to one student. We consider this
finding to be an instance of non-compliance.
Cause: The condition was caused by using more than $200 in current year funds to pay prior year balance.
Effect: As a result, the Institution was holding funds that needed to be returned to the student.
Question Costs: $850
Statistical sampling was not used when making sample selections.
Recommendation: As the funds were used to pay prior academic year tuition, we recommend the Institution
increase controls over credit balances.
Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in
the Corrective Action Plan.