Finding Text
2022-002: Student Refund of Credit Balances within 14 Days Federal Agency: Department of Education Federal Program: Student Financial Assistance Cluster CFDA Numbers: 84.268 ? Federal Direct Loan Program Award Period: July 1, 2021 to June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 668.164(e) states that whenever an institution disburses title IV, HEA program funds by crediting a student?s account and the total amount of all title IV, HEA program funds credited exceeds the amount of tuition and fees, room and board, and other authorized charges the institution assessed the student, the institution must pay the resulting credit balance directly to the student or parent as soon as possible but? (1) No later than 14 days after the balance occurred if the credit balance occurred after the first day of class of a payment period; or (2) No later than 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: During our testing, we noted 3 of 14 students tested did not have the credit balance resulting from federal funds refunded within the 14-day period or form indicating waiver on the refunds being held for further charges. Questioned Costs: None Context: During our testing it was noted that the Seminary failed to refund students within the 14-day period. Cause: The Seminary did not post adjustments to student accounts within the correct time period nor did they receive a waiver form from the students indicating they can hold the refund until future charges on the student account. Effect: The Seminary did not refund students within 14 days for credit balances that arose from federal funds as required by Department of Education regulations. Repeat Finding: No Recommendation: We recommend the Seminary implement a process to ensure they are refunding students credit balances within 14 days. If the Seminary continues their refund practice, we recommend they have an authorization form for every student. Views of Responsible Officials: There is no disagreement with the audit finding.