Finding Text
Federal Agency: U.S. Department of Education Federal Program Name: Student Financial Assistance Cluster Assistance Listing Number: 84.063, 84.007, 84.033, 84.268, 84.038, 84.379 Federal Award Identification Number and Year: P268K252434-2025, P007A244490-2025, P033A244490-2025, P063P242434-2025, P379T252434-2025 Award Period: July 1, 2024 through June 30, 2025 Type of Finding: - Significant Deficiency in Internal Control over Compliance - Other Matters Criteria or Specific Requirement: Title IV credit balances must be paid directly to the student or parent within 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 day the credit balance occurred if that was after the first day of class. An institution is permitted to hold credit balances if it obtains a voluntary authorization from the student. Regardless of any authorization obtained by the institution, the institution must pay any remaining loan balance by the end of the loan period and any other remaining Title IV funds by the end of the last payment period in the award year for which the funds were awarded. Condition: We tested a sample of 8 credit balance returns across 5 students that had Title IV credit balances, and we noted that the College returned Title IV Credit balances for 4 of those students after the 14-day requirement. The College did not maintain documentation of authorization to hold the credit balances for those 4 students. Questioned Costs: None Context: The Colleges serves more than 2,500 students. The College has a process for notifying students regarding credit balances and the options they have regarding those balances, and obtaining verbal authorizations to hold the balances, however, the College did not maintain documentation of the authorization to hold the funds beyond of the 14-day timeframe. Effect: The student received the Title IV credit balance after the 14-day required timeframe. Repeat Finding: No Recommendation: We recommend that the College updates its processes and internal controls designed to ensure compliance with the requirement to return Title IV credit balances within the required timeframe and maintain documentation of student authorizations if balances will be held longer than the 14-day timeframe. Views of responsible officials: There is no disagreement with the audit finding.