FAC Explorer

Finding 33148 (2022-006)

- Repeat Finding
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-03-29
Audit: 29056
Organization: Presbyterian College (SC)
Auditor: Bdo USA LLP

AI Summary

  • Core Issue: The College failed to issue a refund for a student credit balance within the required 14-day timeframe.
  • Impacted Requirements: Non-compliance with federal regulations regarding timely disbursements of Federal Student Aid credit balances (34 CFR 668.164(h)).
  • Recommended Follow-Up: Implement regular reviews of credit balances and improve communication between the Financial Aid and Business Offices to ensure timely refunds.

Finding Text

Federal Program Information: Student Financial Assistance Cluster (Various ALN #?s) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): Special Tests and Provisions ? Disbursements to or on Behalf of Students ? Federal Student Aid (?FSA?) Credit Balances - Where disbursements created a credit balance in the student account and the student or parent did not provide an authorization for the institution to retain funds, the institution must provide the credit balance amount to the student within 14 days of the date the balance was created (34 CFR 668.164(h)). Condition: Instance was identified where the College did not issue a refund within the required timeframe. Cause: Lack of administrative oversight with respect to disbursements to or on behalf of students. Effect: The College was not in compliance with disbursements to or on behalf of students. Questioned Costs: None. Context: For 1 of 40 students selected for testing, the College did not issue the refund within the required 14 days. Identification as a Repeat Finding: This is a repeat finding of prior year finding 2021-007. Recommendation: We recommend the College complete a timely review of credit balances in order to issue all refunds with respect to FSA credit balances within the required timeframe. Views of Responsible Officials and Planned Corrective Actions: This finding relates to aid that was disbursed in January 2022. A miscommunication occurred between the Financial Aid Office and the Business Office, and the Student Accounts Manager was not made aware the aid had been disbursed and a refund was due to the student. As a result of a similar finding during the June 30, 2021 audit, the College changed its policy as of February 15, 2022. The Student Accounts Manager is now completing timely reviews of credit balances on student accounts and coordinating with the Financial Aid Office to expedite its review of the student?s financial aid to ensure all FSA credit balances are refunded to students within the required timeframe.

Corrective Action Plan

Individuals Responsible for Corrective Action Plan Jeff Scaccia, CPA (Vice President for Finance and Administration) Libby Shull, CPA (Controller) April Baur, (Director of Student Financial Aid) For 1 of 40 students tested, refund was processed outside of the 14-day required time frame from initial date credit balance was created to date credit refund was paid back to the student. Corrective Action Plan: This finding relates to aid that was disbursed in January 2022. A miscommunication occurred between the Financial Aid Office and the Business Office, and the Student Accounts Manager was not made aware the aid had been disbursed and a refund was due to the student. As a result of a similar finding during the June 30, 2021 audit, the College changed its policy as of February 15, 2022. The Student Accounts Manager is now completing timely reviews of credit balances on student accounts and coordinating with the Financial Aid Office to expedite its review of the student?s financial aid to insure all FSA credit balances are refunded to students within the required timeframe. Anticipated Completion Date: February 15, 2022

Categories

Special Tests & Provisions Student Financial Aid Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
10.766 Community Facilities Loans and Grants Cluster $58.41M
84.268 Federal Direct Student Loans $17.38M
84.063 Federal Pell Grant Program $1.40M
84.425 Covid-19 Higher Education Emergency Relief Fund (heerf) Student Portion $1.33M
84.425 Covid-19 Higher Education Emergency Relief Fund (heerf) - Institutional Portion $1.33M
97.036 Covid-19 Disaster Grants - Public Assistance (presidentially Declared Disasters) $326,944
93.859 South Carolina Idea Networks of Biomedical Research Excellence (sc Inbre) - Administrative Core $172,635
84.033 Federal Work-Study Program $114,034
84.007 Federal Supplemental Educational Opportunity Grant $88,750
21.027 Coronavirus State and Local Fiscal Recovery Funds $60,000
93.859 South Carolina Idea Networks of Biomedical Research Excellence (sc Inbre) - Determining the Mechanisms of Heat Shock Protein 90 Regulation of Morphine Tolerance $54,736
47.050 Rui: Characterization and Modeling Space Weather Geomagnetic Fluctuations $29,926
93.859 South Carolina Idea Networks of Biomedical Research Excellence (sc Inbre) - Dna Methylation Patterns of Mammary Stem Cells As An Indicator of Breast Cancer Plasticity $19,642
93.859 South Carolina Idea Networks of Biomedical Research Excellence (sc Inbre) - Administrative Supplement: Epigenetic and Mrna Translational Control Mediated by Adherens Protein Plekha7 $12,300
43.008 Mist 2021: Modeling Magnetic Storms $7,500
43.008 Undergraduate Student Research Award $7,500
84.379 Teacher Education Assistance for College and Higher Education Grants $3,772
43.008 Reap 2021-22: Dissemination of Research on Magnetospheric Ulf Waves $2,000
43.008 Space Grant Campus Director $1,500
84.038 Federal Perkins Loan Program $0