Finding Text
Finding 2025-009 - U.S. Department of Education (ED), Title IV Student Financial Aid Programs - Untimely Release of Title IV Credit Balances (Significant Deficiency): Information on the federal program – Federal Direct Student Loans, ALN 84.268, June 30, 2025; Federal Pell Grant Program, ALN 84.063, June 30, 2025; Federal Supplemental Educational Opportunity Grant, ALN 84.007, June 30, 2025; Federal Work-Study Program, ALN 84.033, 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 for a PLUS Loan) no later than 14 calendar days after the balance occurs Condition – During testing of student account activity, we identified that five (5) 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 impacts the University’s administrative capability under 34 CFR § 668.16, exposing the University to regulatory findings and required corrective action. Questioned Costs - $0 Repeat Finding – Yes Auditor’s 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 8.3% (5 out of 60 students) suggests a weakness in the University’s processes. Auditor’s Recommendation – The University should implement weekly monitoring of credit balances, improve coordination between departments, and establish system alerts or automated processes. View of Responsible Officials – Management agrees with the finding. See the accompanying Corrective Action Plan for the University's planned corrective actions, responsible officials, and implementation dates.