Finding Text
Finding 2024-008 - U.S. Department of Education (Title IV Student Financial Aid Programs - Untimely Release of Title IV Credit Balances (material weakness): Information on the federal program: Federal Direct Student Loans, FAL No. 84.268, June 30, 2024; Federal Pell Grant Program, FAL No. 84. 063, June 30, 2024; Federal Supplemental Educational Opportunity Grant, FAL No. 84.007, June 30, 2024; Federal Work-Study Program, FAL No. 84.033, June 30, 2024. Criteria – Per 34 CFR § 668.164 (h)(1)-(2), institutions must Pay a Title IV credit balance to the student (or parent for a PLUS Loan) no later than 14 calendar days after the balance occurs Condition – During testing of student account activity, we identified that seven (7) out of sixty (60) sampled students had Title IV–created credit balances that remained on their accounts for more than 14 days without being released to the student or parent. Cause – The delays appear to have resulted from insufficient monitoring of aged credit balances on student accounts. Effect – Holding Title IV funds beyond 14 days impact the institution’s administrative capability under 34 CFR § 668.16, exposing the College to regulatory findings and required 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 11.7% (7 out of 60 students) indicates a systemic weakness, not isolated oversight. Repeat Finding - Yes Auditor’s Recommendation - The University should implement weekly monitoring of credit balances, improve coordination between departments, and establish system alerts or automated processes. Management’s Response – Management has enhanced system controls and implemented periodic internal monitoring. View of Responsible Officials – Management agrees with the finding and acknowledges that the identified condition resulted from the system not pulling credit balances per semester.