Finding Text
2025–006 Title IV Credit Balances Federal Agency: U.S. Department of Education Federal Program Name: Student Financial Aid Cluster Assistance Listing Number: 84.063, 84.268, 84.007, 84.038, 84.033 Federal Award Identification Number and Year: P268K251853, P063P241853, P007A242813, P033A24813; 2025 Award Period: June 1, 2024 – May 31, 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters Criteria or specific requirement: The Code of Federal Regulations, 34 CFR 668.164(e) states, that whenever an institution disburses Title IV funds by crediting a student’s account and the total amount of all Title IV funds credited exceeds the amount of tuition and fees, room and board, and other authorized charges the institution assessed the student, the institution must pay the resulting credit balance directly to the student or parent as soon as possible but – 1) No later than 14 days after the balance occurred if the credit balance occurred after the first day of class of a payment period; or 2) No later than 14 days after the first day of class of a payment period if the credit balance occurred on or before the first day of class of that payment period Condition/Context: During our testing, 3 students out of a sample of 40 had a credit balance as a result of receiving Title IV aid that was not returned to the student or parent borrower within the required 14-days from the date the credit balance was derived. Questioned costs: No. Cause: The College’s internal controls for ensuring timely return of credit balances did not function properly. Effect: The College did not refund a student within 14 days for a credit balance that arose from federal funds as required by the Department of Education regulations. Repeat Finding: No. Recommendation: We recommend the College evaluate its procedures and review policies in overseeing student credit balances to ensure that any credit balances as a result of Title IV aid are returned within the required timeframe. Views of responsible officials: Please refer to the attached corrective action plan.