Finding Text
Finding 2024-001: Significant Deficiency - Title IV Credit Balances
Federal Program: Student Financial Assistance Cluster
Federal Agency: U.S. Department of Education
Pass-Through Entity: Not Applicable
Assistance Listing Number (ALN): 84.268
Federal Award Number: P268K242266
Federal Award Year: June 30, 2024
Criteria: Title IV regulations (34 CFR 668.164(h)(1) require that Title IV credit balances on student accounts be paid directly to the student as soon as possible but no later than 14 days after the balance occurred. A student or parent may authorize the Institution to hold the credit balance to be applied to specified other nontuition fees, room and board charges, up to $200 of prior year, or future charges as noted in the regulations at (34 CFR 668.165(b)).
Condition/Context: For 7 of 25 students tested, the students’ Title IV credit balances on their accounts were held for longer than the 14-day maximum, without student or parent authorization.
The sample was not a statistically valid sample.
Cause: The University's controls surrounding Title IV credit balances being paid timely or being held only when authorized by the student/parent did not detect or appropriately handle the Title IV credit balances.
Effect: Title IV credit balances were held without student/parent authorization longer than the 14-day maximum.
Questioned Costs: Total questioned costs were $27,834 of Federal Direct Student Loan funds
(ALN 84.268).
Recommendation: The University should revise its procedures to ensure Title IV credit balances are paid timely or student/parent authorizations to hold funds are obtained.
Management's Response: The University agrees with the finding. The occurrence of Title IV credit balances occurs primarily with graduate program students. A review is being conducted of current internal control processes and evaluating what additional reporting is capable within the student information system to assist in identifying these Title IV credit balances in a more timely manner. Title IV credit balances are being monitored during the Spring 2025 terms and new procedures will be put in place for the Fall 2025 term.