Finding Text
Federal Agency: U.S. Department of Education
Federal Program Name: Student Financial Assistance Cluster
Assistance Listing Number: 84.007, 84.033, 84.063, and 84.268
Pass-Through Agency: N/A
Pass-Through Number(s): N/A
Award Period: July 1, 2023 June 30, 2024
Type of Finding: Material Weakness in Internal Control over Compliance, Other Matters
Criteria or specific requirement: Per Uniform Guidance 34 CFR 668.164(h)(2)(i), title IV credit
balance must be paid directly to the student no later than 14 days after the balance occurred.
Per Uniform Guidance 2 CFR 200.303, nonfederal entities receiving federal awards are required to
establish and maintain internal controls designed to reasonably ensure compliance with federal laws,
regulations, and program compliance requirements.
Condition: During our testing, 41 out of 51 credit balance refunds were returned later than 14 days after the credit balance occurred in student account.
Questioned costs: None
Context: The College was returning credit balance refunds longer than 14 days after they occurred.
Cause: The College was holding financial aid balance until student's purchased bookstore items on student accounts.
Effect: The students did not have access to their credit balance refunds timely.
Repeat Finding: No
Recommendation: We recommend the college update procedures around disbursements of credit balances and implement controls to ensure credit balances are being returned timely.
Views of responsible officials: There is no disagreement with the audit finding. Prior to FY23 students signed a form acknowledging and authorizing the College to have credit balances held on their account in the event there would be classes added and to purchase books. During FY23 this procedure was discontinued for an unrelated reason and an unintended consequence was not meeting the 14-day requirement. The College is in the process of developing a new procedure which will be implemented in January, 2025.