Finding Text
240 Day Outstanding Payments 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), institutions must return Title IV credit balance funds to the U.S. Department of Education no later than 240 days from the date a check is issued if the student fails to negotiate the check. Institutions are required to monitor outstanding Title IV disbursements and complete timely returns to maintain compliance with federal cash management regulations. Condition: During our testing we noted instances where Title IV checks were outstanding more than 240 days. Questioned costs: $633 This finding includes a questioned cost, however CLA determined this is not a material weakness that would result in a material misstatement in the F/S as the amount of the questioned cost is trivial. Context: As of June 30, 2025 we noted three Title IV checks outstanding more than 240 days. Cause: The client was not aware that the credit balance needed to be remitted back to the Department of Education. Effect: These Title IV funds should be returned to the U.S. Department of Education. Repeat Finding: No Recommendation: We recommend the District implement a review process for outstanding student payments to ensure any that include Title IV funds are refunded to the U.S. Department of Education within 240 days. Views of responsible officials: There is no disagreement with the audit finding.