Finding 1175830 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-03-02

AI Summary

  • Core Issue: The University failed to disburse Title IV credit balances within the required 14-day timeframe.
  • Impacted Requirements: Federal regulations mandate timely refunds for Title IV awards, which were not met.
  • Recommended Follow-Up: Review and enhance refund procedures to ensure compliance with disbursement timelines.

Finding Text

Student Financial Aid Cluster Finding 2025-001: Disbursement of Title IV Credit Balance Criteria and Condition: According to federal regulations, student refunds of credit balances caused by disbursement of a Title IV award (Title IV credit balance) must be returned to the borrower within 14 days. Three of the credit balances selected was not disbursed within the 14 day requirement. Context: The students were owed a refund for the Fall 2024 term, but the disbursement was delayed beyond the required timeframe. Cause: The University did not have adequate processes in place to ensure timely disbursements to students owed a Title IV refund. Effect: The University did not comply with the requirement to disburse funds for Title IV credit balances within 14 days, resulting in a delayed refund to the students. Recommendation: We recommend the University review its refund procedures and implement controls to ensure Title IV credit balances are disbursed timely. Views of Responsible Officials: The University will review and update its internal procedures and controls for handling credit balances to ensure that future Title IV credit balances are disbursed to students within the 14 day window. Questioned Costs: $0

Corrective Action Plan

The University will review and update its internal procedures and controls for handling credit balances to ensure that future Title IV credit balances are disbursed to students within the 14 day window.

Categories

Student Financial Aid

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $17.48M
10.766 COMMUNITY FACILITIES LOANS AND GRANTS $11.87M
84.063 FEDERAL PELL GRANT PROGRAM $4.05M
84.038 FEDERAL PERKINS LOAN PROGRAM - BEGINNING LOAN BALANCE $193,208
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $138,225
84.033 FEDERAL WORK-STUDY PROGRAM $70,461