Finding Text
Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Direct Student Loan Program Federal Pell Grant Program ALN and Program Expenditures: 84.268 ($866,312) 84.063 ($509,088) Award Number: P268K253315 P063P243315 Federal Award Year: July 1, 2024 to June 30, 2025 Questioned Costs: N/A Condition Found: The University was placed on the Heightened Cash Monitoring Method 2 (“HCM2”) for disbursing aid in May 2023. In the current fiscal year, a Title IV Credit Balance was held for more than 14 days for one of the seventeen students in our sample. Criteria: One of the requirements of HCM2 is that an institution cannot hold credit balances even with the student’s authorization. An institution must disburse aid and return all credit balances created by Title IV funds before requesting reimbursement from the U.S. Department of Education. Cause: This credit balance was overlooked by the business office and Bursar when issuing Title IV credit balance refunds. Possible Asserted Effect: The Title IV Credit Balance was not returned timely as required by Institution being placed on the HCM2 method of disbursing aid. Repeat Finding: There was not a similar finding for the year ended June 30, 2024. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: There is no longer a credit balance on the account of the student in question. The business office should review student accounts to determine if any additional credit balances should be refunded. Procedures should be improved to ensure the University is following the HCM2 regulations. Management Response: There is no longer a credit balance on the account of the student in question. If time allows, the business office will review student accounts to determine if any additional credit balances should be refunded. Procedures should be improved to ensure the University is following the HCM2 regulations.