Finding Text
Federal Program: Student Financial Assistance Cluster Federal Assistance Listing Number: 84.063, 84.033, 84.038, 84.007, 84.268, 84.379 Federal Agency: Department of Education (DOE) Federal Award Numbers: P063P242023, P033A243392, Unknown, P007A243392, P268K252023, P379T0972023; Award Year: 2025 Criteria: Federal regulations require institutions to pay Title IV credit balance refunds to students or parents as soon as possible, but no later than 14 days after the credit balance occurs. In addition, institutions must establish and maintain on a current basis, financial records that reflect each Title IV program transaction; and general ledger control accounts and related subsidiary accounts that identify each Title IV program transaction and separate those transactions from all other institutional financial activity in accordance with 34 C.F.R, 668.24(b)(2). Condition: During our review, we identified 5 of 40 student credit balance refunds that were processed outside of the required 14-day timeframe. Controls for proper review and approval of these refunds were not in place during the entire year under audit. In addition, the University was unable to produce a report to specifically identify which credit balances were attributable to federal financial assistance, as opposed to institutional, state, or other non-federal sources. The sample was not intended to be, and was not, a statistically valid sample. Cause: The institution did not have adequate internal controls or monitoring procedures in place to ensure compliance with credit balance requirements Effect: The University did not fully comply with federal Title IV requirements. Failure to timely process credit balance refunds and to properly identify federal aid credit balances increases the risk of noncompliance, potential regulatory findings, and possible enforcement actions by the U.S. Department of Education. Questioned Costs: None reported Context: Controls did not operate properly for the University to comply with requirements for disbursements to and on behalf of students. Repeat Finding: Yes Recommendations: We recommend that the University implement proper processes and controls to ensure all credit balances resulting from federal aid are properly identified and returned timely. Views of Responsible Officials: Management agrees with the finding. See management's corrective action plan.