Finding Text
Finding No. 2025-002: Inadequate Timing of Return of Student Funds Assistance Title: Student Financial Assistance Cluster Assistance Listing Number: 84.007, 84.063, 84.0384, 84.268, 84.379 Federal Agency: U.S. Department of Education Type of Finding: Significant Deficiency and Noncompliance Category of Finding: Eligibility Known Questioned Costs: $350 Likely Questioned Costs: $350 Criteria According to 34 CFR §668.164(h), institutions must pay the credit balance directly to the student or parent as soon as possible but no later than 14 days after: 1) the first day of class of a payment period if the credit balance occurred on or before that day, or 2) the balance occurred if that was after the first day of class. Condition During our compliance testing of 85 student files, we discovered that 6 files—representing approximately 6% of the sample—had funds that were not appropriately returned in a timely manner. There were 5 files who were not refunded within the 14 day time period and 1 file who was charged a soccer fee when they did not end up playing soccer. Cause The untimely refunds of student accounts resulted from a lapse in internal controls over the student account refund process, possibly due to oversight or insufficient monitoring of student accounts within the Jenzabar software. Effect Failure to refund student accounts timely can lead to incorrect federal expenditures or funding of student accounts, potentially affecting the College’s receipt of federal funding. Repeat Finding This is not a repeat finding. Recommendation We recommend that the College review and enhance its procedures for monitoring and funding student accounts. This could involve implementing automated alerts, providing additional staff training, or establishing more robust internal checks to ensure adherence to refund requirements. Management’s Response Management concurs with this finding. See Management’s Response and Corrective Action plan.