Finding Text
2025-004 – Title IV Credit Balances Federal Agency: U.S. Department of Education Federal Program Name: Federal Pell Grant Program, Federal Direct Student Loans, Federal Supplemental Education Opportunity Grants, Federal Work-Study Program Assistance Listing Number: 84.063, 84.268, 84.007, 84.033 Federal Award Identification Number and Year: P268K241818; P268K251818; P063P231818; P063P241818; P007A232600; PA007A242600; P033A242600 - 2025 Award Period: 7/1/2024 – 6/30/2025 Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Criteria or specific requirement: The Department of Education requires the University to obtain written authorization to hold a Title IV credit balance to apply to future charges within the same academic year. Condition: Testing identified that for 1 out of 40 students, a Title IV credit balance was applied to a subsequent academic term without obtaining written authorization from the student. Questioned costs: None. Context: During our testing, it was noted that a student had a Title IV credit balance and balance was applied to a subsequent term without obtaining written authorization from the student. Cause: The University did not have policies or procedures in place to ensure written authorization for holding Title IV credit balances was obtained and retained. Effect: The University did not comply with Title IV requirements related to the handling of student credit balances. Repeat finding: No. Recommendation: We recommend the University implement policies and monitoring procedures to ensure Title IV credit balances are either refunded to students in a timely manner or supported by documented written authorization. Views of responsible officials: There is no disagreement with the audit finding.