Finding 1100875 (2024-002)

Federal Agency: Department of Education Federal Program: Student Financial Assistance Cluster ALN Numbers: 84.268 – Federal Direct Loan Program Award Period: July 1, 2023 through June 30, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 668.164(h)(1), A title IV, HEA credit balance must be paid directly to the student or parent as soon as possible, but no later than (i) Fourteen (14) days after the balance occurred if the credit balance occurred after the first day of class of a payment period; or (ii) Fourteen (14) 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: During our testing, we noted 28 out of the 40 students tested had credit balances that were not returned to the student or parent within 14 days of the credit balance occurring. Questioned Costs: None Context: During our testing, it was noted the Seminary does not have a process in place to ensure timeliness of funds being returned to the student based on the regulations set forth by the Department of Education. Cause: The Seminary did not have a process in place to ensure the refunds are completed timely. Effect: The Seminary is not in compliance with Department of Education requirements that states student’s credit balance must be returned no later than 14 days. Repeat Finding: No Recommendation: We recommend that the Seminary implemented a process to ensure credit balances are returned timely based on the regulations set forth by the Department of Education. Views of Responsible Officials: There is no disagreement with the audit finding.