Finding Text
Finding Number: 2024-001
Information on the
Federal Program: Federal Agency: United States Department of Education (ED)
Program Name: Student Financial Assistance Cluster
Federal Award Identification Number: N/A
Federal Award Year: Year Ended June 30, 2024
Specific Requirement: Required by 34 CFR 668.164, a Title IV, Higher Education Act (HEA) credit balance must be paid directly to the student or parent as soon as possible, but no later than (1) fourteen days after the balance occurred if the credit balance occurred after the first day of class of a payment period; or (2) fourteen days after the first day of class of a payment period if the credit balance occurred on or before the first day of class of that payment period.
Condition Found: During our audit, we noted that credit balances were not refunded to students and/or parents within the 14-day requirement.
Context: There was one credit balance refund batch during the year where payments occurred outside of the 14 days.
Questioned Costs: None.
Cause and Effect: The University is aware of the requirement to refund credit balances on student accounts to students and/or parents within 14 days of the end of the payment period. The University completed a system conversion during the year ended June 30, 2024, which included the accounts payable system. This refund period was the first batch processed and failed. When the batch was reprocessed, the payments to students and parents occurred outside of the 14 days.
Identification as a
Repeat Finding,
if Applicable: N/A
Recommendation: We recommend that the University process credit balance refunds with enough time to reprocess payments within the 14-day window.
Views of a Responsible
Official and Corrective
Action Plan: Management agrees with the finding and the recommendation. See Corrective Action Plan on page 44.