Finding Text
Assistance Listing, Federal Agency, and Program Name - Student Financial Assistance Cluster - Federal Pell Grant Program ALN 84.063 Federal Award Identification Number and Year - Various Pass through Entity - N/A Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - Per 34 CFR 668.164(h), when a Title IV credit balance occurs, the School District must pay the credit balance directly to the student or parent no later than 14 calendar days after the balance is created unless the School District obtains a voluntary authorization from the student to hold the Title IV credit balance. Condition - The institution did not reimburse students with credit balances within 14 days of the balance being posted to their student ledger. Questioned Costs - None If questioned costs are not determinable, description of why known questioned costs were undetermined or otherwise could not be reported - No over award identified, but noncompliance with timing requirements. Identification of How Questioned Costs Were Computed - N/A Context - During our review of student account records and disbursement activity, we identified that the institution did not consistently remit Title IV credit balances to students within the required 14 day timeframe. Of the 60 students tested, we identified that 48 students were not paid within the required 14 day period and authorizations to hold the funds were not obtained. Cause and Effect - The institution’s disbursement procedures establish that students will receive refund checks approximately 6 to 8 weeks following the aid being applied to their student ledger. Students experienced delays in receiving funds intended to cover educational and living expenses. The institution was not in compliance with federal disbursement timing requirements. Recommendation - We recommend the institution implement automated tracking of Title IV credit balances and establish internal controls to ensure timely remittance within the 14 day requirement. Staff should be trained on federal disbursement regulations and procedures should be updated to include regular monitoring. Views of Responsible Officials and Planned Corrective Actions - The School District agrees with the finding. The School District is implementing automated tracking of Title IV credit balances and establishing internal controls to ensure timely remittance within the 14-day federal requirement. Staff are being trained on updated federal disbursement regulations, and procedures are being revised to include routine monitoring to ensure ongoing compliance.