Finding 1201483 (2025-009)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-03-30
Audit: 396041
Organization: William Peace Universirty (NC)

AI Summary

  • Core Issue: The University failed to refund Title IV credit balances to students within the required 14-day period.
  • Impacted Requirements: This finding violates federal regulations outlined in 34 CFR 668.164(h)(2) regarding timely disbursement of funds.
  • Recommended Follow-Up: The University should review and improve its procedures for handling credit balances to ensure compliance with refund timelines.

Finding Text

Federal Agency: U.S. Department of Education Federal Program Name: Student Financial Aid Cluster Assistance Listing Number: 84.063, 84.268, 84.007, 84.033 Federal Award Identification Number: P007A243144, P063P241946, P033A243144, P268K251946 Award Period: July 1, 2024 – June 30, 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or Specific Requirement: Federal regulations require that when a Title IV credit balance occurs, the institution must disburse the credit balance to the student or parent within 14 calendar days of the date the credit balance is created, in accordance with 34 CFR 668.164(h)(2). Condition: The University did not refund the student's Title IV credit balance within 14 days period. Questioned Costs: N/A Context: During our testing we noted two out of forty students were not refunded within the fourteen days per federal requirements. Cause: The University’s controls around credit balances were not functioning as designed to ensure timely refunds to students. Effect: The University is not in compliance with the Department of Education guidelines. Repeat Finding: No Recommendation: We recommend the University evaluate its procedures and policies around credit balances to ensure that students are refunded within the fourteen day requirement. Views of Responsible Officials: There is no disagreement with the audit finding and the University is in the process of implementing corrective procedures.

Corrective Action Plan

Credit Balance Recommendation: We recommend the University evaluate its procedures and policies around credit balances to ensure that students are refunded within the fourteen day requirement. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management understands this federal requirement and will ensure that it is met. Name(s) of the contact person(s) responsible for corrective action: Controller Will Gibbons Planned completion date for corrective action plan: June 30, 2026

Categories

Student Financial Aid Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1201470 2025-004
    Material Weakness Repeat
  • 1201471 2025-004
    Material Weakness Repeat
  • 1201472 2025-004
    Material Weakness Repeat
  • 1201473 2025-004
    Material Weakness Repeat
  • 1201474 2025-005
    Material Weakness Repeat
  • 1201475 2025-005
    Material Weakness Repeat
  • 1201476 2025-006
    Material Weakness Repeat
  • 1201477 2025-007
    Material Weakness Repeat
  • 1201478 2025-007
    Material Weakness Repeat
  • 1201479 2025-008
    Material Weakness Repeat
  • 1201480 2025-009
    Material Weakness Repeat
  • 1201481 2025-009
    Material Weakness Repeat
  • 1201482 2025-009
    Material Weakness Repeat
  • 1201484 2025-010
    Material Weakness Repeat
  • 1201485 2025-010
    Material Weakness Repeat
  • 1201486 2025-010
    Material Weakness Repeat
  • 1201487 2025-010
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $4.21M
84.063 FEDERAL PELL GRANT PROGRAM $1.80M
84.033 FEDERAL WORK-STUDY PROGRAM $44,956
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $37,339
84.425 EDUCATION STABILIZATION FUND $8,266