Finding Text
FINDING 2022-004: UNTIMELY PAID CREDIT BALANCES WHILE ON HIGHTENED CASH MONITORING 1 PAYMENT METHOD FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION PROGRAM NAME: FEDERAL DIRECT LOAN PROGRAM ALN#: 84.268 FEDERAL AWARD YEAR: 2021-2022 Compliance Requirement: Special Tests and Provisions (N.) Criteria: Under the heightened cash monitoring payment method, an institution must credit a student's ledger account for the amount of Title IV, HEA program funds that the student or parent is eligible to receive, and pay the amount of any credit balance due before the institution submits a request for funds (34 CFR 668.22). Condition: We tested seventy-one files and credit balances were not paid in a timely manner for one student. We consider this finding to be a significant deficiency. Cause: The condition was caused by not paying credit balances prior to requesting funds. Effect: As a result, the Institution was holding funds that needed to be returned to the students and violated the special conditions of provisional certification of its Program Participation Agreement (PPA). Question Costs: $689 Statistical sampling was not used when making sample selections. See schedule of findings and questioned costs for chart/table Recommendation: We recommend the Institution increase controls over the payment of credit balances. We are issuing a significant deficiency for this attribute as the conditions of Heightened Cash Payment Monitoring 1 have not been adhered to for the audit period. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.