Finding Text
Finding 2024-002 – Timely Return of Student Refunds (Significant Deficiency)
Information on federal programs: This finding is related to the Student Financial Aid Cluster.
Criteria: In accordance with 34 CFR 668.164(h)(2), the Student Financial Aid Cluster, Special Tests and Provisions requirements mandate that the Institute must return Title IV credit balances to students no later than fourteen days after the balance occurred after the first day of class of a payment period.
Condition: In a sample of 25 students tested, the Institute failed to disburse refunds to six students within the required 14-day window under 34 CFR 668.164(h)(2). Delay in refunds averaged one to four weeks beyond the required deadline.
Cause: There was turnover in key positions that had responsibility for reviewing student accounts and approving student refunds.
Effect: The impact of this significant deficiency could result in students continuing to receive their refunds later than required under federal guidelines.
Recommendation: Crowe recommends the Institute ensure the proper level of resources are in place to execute student refunds in a timely manner. Furthermore, we recommend that additional checks and balances are implemented so that in the event turnover is experienced, critical functions performed by departing employees continue to be conducted.
Views of responsible officials and planned corrective actions: The disbursement process of such refunds was transferred to a new team within the Finance/Treasury branch. The team size was increased from 2 to 4 members. Members added to this team have relevant previous experience in student accounts. The additional resources as well as their experience and knowledge should ensure that funds are returned in a timely manner that complies with program requirements.