Finding Text
Finding 2025-006 - U.S. Department of Education (ED), Student Financial Assistance Cluster - Untimely Release of Title IV Credit Balances (significant deficiency): Information on the Federal Program: Federal Pell Grant Program, FAL No. 84. 063, June 30, 2025; Federal Supplemental Educational Opportunity Grant (FSEOG), FAL No. 84.007, June 30, 2025; Federal Work-Study Program (FWS), FAL No. 84.033, June 30, 2025; Federal Direct Student Loans, FAL No. 84.268, June 30, 2025. Criteria – Per 34 CFR § 668.164 (h)(1)-(2), institutions must Pay a Title IV credit balance to the student (or parent, in the case of a PLUS Loan) no later than 14 calendar days after the balance occurs. Condition – During testing of student account activity, we identified that nine (9) out of 38 students had credit balances related to Title IV funds that remained on their accounts for more than 14 days without being released. Cause – The delays resulted from insufficient monitoring and follow-up of aged credit balances on student accounts. Effect – Holding Title IV funds beyond the allowable timeframe negatively impacts administrative capability under 34 CFR § 668.16 and exposes the College to regulatory findings and corrective action. Questioned Costs – $0 Perspective – Timely release of Title IV credit balances is one of the Department of Education’s most frequently tested compliance areas. A failure rate of 13.3% (8 out of 60 students) indicates a systemic internal control weakness rather than an isolated oversight error. Repeat Finding – Yes Auditor’s Recommendation – The institution should implement weekly monitoring of credit balances, enhance interdepartmental coordination, and establish automated alerts to ensure timely disbursements. View of Responsible Officials – The institution is aware of the late refunds and has implemented a process to prevent this from recurring.