Finding Text
Title IV Credit Balances Federal Agency: U.S. Department of Education Federal Program Name: Student Financial Aid Cluster Assistance Listing Number: 84.063 Federal Award Identification Number and Year: N/A Award Period: July 1, 2024 – June 30, 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance; Noncompliance (Other Matters) Criteria or specific requirement: The Code of Federal Regulations, 34 CFR 668.164(h)(2)(ii) requires title IV, HEA credit balances to be paid directly to the student or parent as soon as possible, but no later than 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: We noted instances where Title IV credit balances were not paid to students in a timely manner. Questioned costs: None Context: We noted 11 instances in our sample of 40 where the refund was processed outside the 14 - day time frame. Cause: The District’s policies and procedures did not ensure Title IV credit balances were paid in a timely manner. Effect: Certain title IV credit balances were not paid in a timely manner. Repeat Finding: No Recommendation: We recommend that the District review its policies and procedures for Title IV credit balances to ensure they are paid in a timely manner. Views of responsible officials: There is no disagreement with the audit finding.