Finding Text
Finding 2024-001 Credit Balances Condition: We tested a sample of 40 students, of which 22 had Title IV credit balances during the year. For four of these 22 students, the Institution did not disburse the credit balances within the required timeframe. The sample was selected using a statistical methodology designed to achieve a 90% confidence level. The resulting error rate (18.2%) exceeded our materiality threshold of 10%. Further, this same issue was noted in a recent U.S. Department of Education program review. Accordingly, expanding the sample would not reduce the materiality of this finding. Criteria: In accordance with 34 CFR §668.164(e), when a Title IV credit balance exists, an institution must pay the credit balance directly to the student (or parent, if applicable) as soon as possible, but no later than 14 calendar days after:1. The balance occurs if it happens after the first day of classes of a payment period; or 2. The first day of classes of a payment period if the balance occurs on or before that day. Cause: This instance of noncompliance was due to an oversight in the Institution’s monitoring and disbursement process. Effect: Failure to timely disburse Title IV credit balances results in students not receiving financial aid funds when needed for educational and living expenses, potentially creating financial hardship. Questioned Costs: $0 –– Non-monetary compliance finding. Recommendation: The Institution should strengthen its monitoring and internal control procedures to ensure that Title IV credit balances are consistently identified and disbursed within the required timeframe. View of Responsible Officials: The Institution concurs with the finding. See corrective action plan.