Finding Text
Criteria: 34 CFR 668.163 (c)(3) notes, “An Institution may keep the initial $500 in interest it earns during the award year on the other title IV, HEA program funds it maintains in accordance with paragraph (c)(1) of this section. No later than 30 days after the end of that award year, the institution must remit to the Department of Health and Human Services, Payment Management System, Rockville, MD 20852, any interest over $500.”
Condition: The College retained interest earnings in excess of $500 in their federal bank account during fiscal year 2024. We consider this condition to be an instance of noncompliance relating to the Cash Management compliance requirement and is not a repeated finding.
Questioned Costs: $328
Cause and Effect: Without proper review of their federal bank account interest greater than $500 may be retained.
Recommendation: We recommend the College return $328 to the Department.
Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.