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Finding 2025-002 - Special Tests and Provisions – Disbursements on Behalf of Students - Significant Deficiency Name of Federal Agency: U.S. Department of Education Federal Program Name: Federal Pell Grant Program Assistance Listing Number: 84.063 Federal Award Identification Number and Year: P063P253382 2025 Name of Pass-through Entity: N/A Criteria According to the Federal Register (34 CFR 668.164 (h)(2)), A title IV, HEA credit balance must be paid directly to the student or parent as soon as possible, but no later than; i) Fourteen (14) days after the balance occurred if the credit balance occurred after the first day of class of a payment period; or ii) 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 1 instance where the Institute did not return a credit balances regarding the Federal Pell Grant Program within prescribed timeframes in accordance with U.S. Department of Education regulations. Cause There was an administrative oversight that caused the above mentioned condition. Effect or Potential Effect The effect of these findings is noncompliance with U.S. Department of Education regulations regarding special tests and provisions. Questioned Costs None Context A total of 30 students who were credited with Federal Pell Grant Program proceeds during the year were included in the randomly selected sample of 40 participating students. Our testing noted that 1 of the students with Federal Pell Grant Program proceeds credited to their account did not have credit balances refunded within the prescribed timeframes. Identification as a repeat finding This is not a repeat finding. Recommendation We recommend the Institute review and revise, its current procedures and have controls in place to ensure credit balances regarding Federal Pell Grant Program proceeds are refunded within the prescribed timeframes. Views of Responsible Officials In May of 2026, the Institute amended its procedures to (1) require the printing of a schedule of student balances after application of Federal Pell Grant and Loan receipts and (2) for all students with a credit balance within 12 days of the Pell receipt indicating the check number and date of the refund to the student on this schedule. This schedule is then to be reviewed for adherence to the required 14-day refund requirement under the Pell program by another staff member.