Finding 1205158 (2025-002)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-03-31
Audit: 396825
Organization: Beacon College, Inc. (FL)

AI Summary

  • Core Issue: The University failed to refund 20 student credit balances from Title IV funds within the required 14-day period.
  • Impacted Requirements: This finding violates 34 CFR 668.164(e), which mandates timely refunds for excess Title IV funds.
  • Recommended Follow-Up: The College should assess and improve its procedures for managing student credit balances to ensure compliance with federal regulations.

Finding Text

Federal Program Title: Student Financial Assistance Cluster Federal Assistance Listing Number: 84.268 Federal Award Identification Number and Year: Various Award Period: 7/1/24-6/30/25 Type of Finding: Material Weakness in Internal Control over Compliance, Material Noncompliance Criteria or specific requirement: The Code of Federal Regulations, 34 CFR 668.164(e) states, that whenever an institution disburses Title IV funds by crediting a student's account and the total amount of all Title IV funds credited exceeds the amount of tuition and fees, room and board, and other authorized charges the institution assessed the student, the institution must pay the resulting credit balance directly to the student or parent as soon as possible but— (1) No later than 14 days after the balance occurred if the credit balance occurred after the first day of class of a payment period; or (2) No later than 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: Twenty student credit balances were not refunded within the required 14-day time frame. Questioned Costs: N/A Context: During our testing, 20 students out of a sample of 40 had a credit balance as a result of receiving Title IV aid that was not returned within the required 14-day timeframe. Cause: Process and controls in place for ensuring timely return of credit balances were not functioning properly. Effect: The University did not refund a student within 14 days for a credit balance that arose from federal funds as required by Department of Education regulations. Repeat Finding: No. Recommendation: We recommend the College evaluate its procedures and review policies in overseeing student credit balances to ensure that any credit balances as a result of Title IV aid are returned within the required timeframe. Views of Responsible Officials: There is no disagreement with the audit finding and the College is in the process of implementing corrective procedures.

Corrective Action Plan

Recommendation: We recommend the College evaluate its procedures and review policies in overseeing student credit balances to ensure that any credit balances as a result of Title IV aid are returned within the required timeframe. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: The institution will conduct a comprehensive policy review related to student accounts and financial aid disbursements. The Student Accounts team will receive retraining, including additional Financial Aid–specific training focused on federal guidelines and compliance requirements. Cross training will be implemented within the Student Accounts team to prevent delays and ensure continuity of operations when staff are on leave. Ongoing communication protocols will also be reinforced between Student Accounts and the outsourced financial aid staffing team (Financial Aid Services (FAS)) regarding disbursement timing to promote coordination and timeliness. Name(s) of the contact person(s) responsible for corrective action: Scott Crawford, Director of Accounting and Melissa Ogelvie, Bursar Planned complet ion date for corrective action plan: July 1, 2027 – While we anticipate improvement in these processes throughout the training process, completion of these corrective actions will be complete by this date. This timeline accounts for the identification, scheduling, and completion of appropriate training opportunities, including potential external training or professional development programs that may require advance enrollment and availability.

Categories

Student Financial Aid Material Weakness Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1205157 2025-004
    Material Weakness Repeat
  • 1205159 2025-003
    Material Weakness Repeat
  • 1205160 2025-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $4.07M
84.063 FEDERAL PELL GRANT PROGRAM $1.00M
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $136,956
84.033 FEDERAL WORK-STUDY PROGRAM $88,534