Finding Text
Federal Agency: U.S. Department of Education
Federal Program Name: Student Financial Aid Cluster
Assistance Listing Number: 84.007, 84.033, 84.063, 84.268
Federal Award Identification Number and Year: P007A242604; P063P23819; P033A242604; P268K241819; 2023-2024
Award Period: July 1, 2023 – June 30, 2024
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters
Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 668.164(h)(2) states that an institution that attempts to disburse funds by check and the check is not cashed, the institution must return the funds to the Department of Education no later than 240 days after the date it issued that check.
Condition: During our testing of refund checks, we noted student refunds of Title IV federal financial aid were outstanding more than 240 days.
Questioned Costs: $78,101
Context: During our testing, we all Title IV checks outstanding over 240 days were not returned to the Department of Education.
Cause: The University did not have a process in place to return Title IV checks outstanding more than 240 days.
Effect: The University is not in compliance with Department of Education requirements that all student refund checks outstanding more than 240 days be returned to the Department of Education.
Repeat Finding: Yes, 2023-004.
Auditors’ Recommendation: We recommend the University review its policies and procedures related to outstanding student refund checks to ensure they are being returned to the Department of Education after 240 days.
Views of Responsible Officials: There is no disagreement with the audit finding.