Finding 1158231 (2024-002)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
$1
Year
2024
Accepted
2025-09-30

AI Summary

  • Core Issue: One out of thirty-one credit balances was not paid to students on time, violating compliance requirements.
  • Impacted Requirements: Institutions must pay credit balances within fourteen days or by the end of the loan period, as per federal regulations.
  • Recommended Follow-Up: Enhance controls over credit balance payments to ensure timely processing and compliance.

Finding Text

FINDING 2024-002: Untimely Paid Credit Balance FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION PROGRAM NAME: FEDERAL DIRECT LOAN PROGRAM ALN#: 84.268 FEDERAL AWARD YEAR: 2023-2024 & 2024-2025 Compliance Requirement: Special Tests and Provisions (N.) - Cash Management Criteria: An institution must pay credit balances to students within fourteen days of the creation of such credit or within fourteen days of the date the institution performs the Return calculation for withdrawn students. When a valid waiver has been obtained, an institution must pay the remaining balance on loan funds by the end of the loan period and any remaining other Title IV program funds by the end of the last payment period in the award year for which the funds were awarded (34 CFR 668.164 and 668.165). Condition: We tested thirty-seven files, thirty-one of which had credit balances, and one credit balance was not paid in a timely manner. We consider this finding to be an instance of non-compliance. Cause: The condition was caused by not issuing the credit balance by the end of the loan period. Effect: As a result, the Institution was holding funds that needed to be returned to the student. Question Costs: $4,657 Statistical sampling was not used when making sample selections. Recommendation: We recommend the Institution increase controls over credit balances. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.

Corrective Action Plan

Finding 2025-002: Untimely Paid Credit Balance Comments on Finding and Recommendation: Statement of Concurrence: We concur with the finding of Untimely Paid Credit Balance The delay in issuing the credit balance was due to a timing oversight related to the award year dates. Although the Credit Balance Authorization Form was on file, the refund was processed after the award year had ended, rather than within the required timeframe. In the past, students were always allowed to keep funds in their Populi accounts for future use regardless of the loan award year, and it had not previously been indicated that this practice was not allowed. Actions Taken or Planned: We have reviewed our internal procedures and will strengthen oversight of award year deadlines to ensure that all credit balances are refunded within the required timeframe. Moving forward, the financial aid and accounting teams will implement a compliance checklist and establish calendar reminders to prevent similar delays. Additionally, we will revise the wording on our Credit Balance Authorization Form to read: “Leave the funds in my account and any remaining funds from the current award year in my account up to the end of the loan period.” Completion Date: Ongoing 9/26/2025 Dong-Hua Yang MD, PhD Date Title: Administrative Dean Telephone: 516-739-1545 Email: administrative_dean@nyctcm.edu

Categories

Questioned Costs Student Financial Aid Special Tests & Provisions Cash Management Reporting

Other Findings in this Audit

  • 1158230 2024-001
    Material Weakness Repeat
  • 1158232 2024-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $915,859