Finding Text
2025 – 005: Special Testing - Credit Balances Federal Agency: Department of Education Federal Program Title: Student Financial Aid Cluster – Various Assistance Listing Numbers: Various Federal Award Identification Number and Year: Various Pass-Through Agency: N/A Pass-Through Number: N/A 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: The Code of Federal Regulations, 34 CFR 668.164(h)(1), A title IV, HEA credit balance must be paid directly to the student or parent as soon as possible, but no later than (i) Fourteen (14) days after the balance occurred if the credit balance occurred after the first day of class of a payment period; or (ii) Fourteen (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: During our testing, we noted 3 out of the 5 students tested had credit balances that were not returned to the student or parent within 14 days of the credit balance occurring. Questioned costs: None Context: During our testing, it was noted the Academy does not have a process in place to ensure timeliness of funds being returned to the student based on the regulations set forth by the Department of Education. Cause: The Academy did not have a process in place to ensure the refunds are completed timely. Effect: The Academy is not in compliance with Department of Education requirements that state the credit balance must be returned no later than 14 days. Repeat finding: No Recommendation: We recommend that the Academy implement a process to ensure credit balances are returned timely based on the regulations set forth by the Department of Education. Views of responsible officials: There is no disagreement with the audit finding.