Finding Text
Federal Program - Student Financial Assistance Cluster, Federal Direct Student Loans Federal Agency - U.S. Department of Education Assistance Listing Number - 84.268 Federal Award Year - June 30, 2025 Criteria: 34 CFR 668.165 requires that when Title IV funds are credited to a student account and they exceed the amount of tuition and fees, food and housing, and other authorized charges assessed the student, the institution must pay the resulting credit balance directly to the student or parent borrower within 14 days after the credit balance occurred. Condition: The federal aid disbursed resulting in a credit balance for one of the 25 students tested was not returned within 14 days of the date the credit balance occurred. The sample was not a statistically valid sample. Questioned Costs: There are no questioned costs associated with this finding. Cause: The University's procedures did not allow for timely payment of the funds to the student due to holidays that occurred. Effect: The University was in possession of funds belonging to the student for four days longer than allowed. Recommendation: The University should increase emphasis on timely processing of refund transactions. Views of Responsible Officials: Management acknowledges and concurs with the finding and returned the funds 18 days after the credit balance was created. The University plans to complete a comprehensive review of procedures to increase emphasis on timely payments of credit balances.