Finding 1123918 (2024-001)

FINDING 2024-001 - UNPAID AND UNTIMELY PAID REFUNDS FEDERAL AGENCY: US DEPARTMENT OF EDUCATION PROGRAM NAME: FEDERAL DIRECT LOAN PROGRAM ALN: 84.268 FEDERAL AWARD YEAR: 2023-2024 COMPLIANCE REQUIREMENT: SPECIAL TESTS AND PROVISIONS (N.) - RETURN OF TITLE IV FUNDS CRITERIA: REFUNDS, IF NECESSARY, MUST BE CALCULATED AND MADE WITHIN 45 CALENDAR DAYS OF THE DATE THE STUDENT WITHDRAWS (34 CFR 668.22, 685.306). CONDITION: WE TESTED THIRTEEN DROP STUDENTS AND NOTED ONE UNPAID AND ONE UNTIMELY PAID REFUND. WE CONSIDER THIS FINDING TO BE INSTANCES OF NON-COMPLIANCE. CAUSE: THE CONDITION WAS CAUSED BY AN OVERSIGHT IN THE FINANCIAL AID DEPARTMENT. EFFECT OR POTENTIAL EFFECT: THE RESULT IS THE INSTITUTION IS RETAINING MONIES WHICH NEED TO BE RETURNED TO THE DEPARTMENT OF EDUCATION. QUESTIONED COSTS: $5,053 RECOMMENDATION: WE RECOMMEND THE INSTITUTION REFUND THE $4,704 FEDERAL DIRECT LOAN FUNDS TO THE DEPARTMENT OF EDUCATION AND INCREASE CONTROLS OVER PAYING REFUNDS. NO ACTION REQUIRED REGARDING PELL FUNDS AS THIS WAS A LATE REFUND. VIEWS OF RESPONSIBLE OFFICIALS: THE INSTITUTION AGREES WITH THE SINGLE AUDIT FINDING AND A RESPONSE IS INCLUDED IN THE CORRECTIVE ACTION PLAN.