Finding Text
Criteria or specific requirement: The Code of Federal Regulations, 34 CFR 668.164(h)(2) states that an
institution that attempts to disburse funds by check and the check is not cashed, the institution must return
the funds to the Secretary no later than 240 days after the date it issued that check. The Code of Federal
Regulations, 2 CFR 200.303, required that entities must establish and maintain internal controls which
provide reasonable assurance that federal award expenditures are in compliance with Federal statutes,
regulations, and the terms and conditions of the Federal Award.
Condition: Connors State College had 7 instance of Title IV refund checks to students that were
outstanding longer than 240 days as of June 30, 2023.
Context: During the testing of the outstanding Title IV student check listing CLA observed seven
instances of stale checks at Connors that were aged greater than 240 days.
Questioned costs: N/A
Cause: Connors State College had controls in place to catch stale checks and reissue, but financial
personnel was not catching reissues over 240 days.
Effect: Funds are not returned to the Department of Education in a timely manner
Repeat finding: No
Recommendation: We recommend that the College start to reconcile stale checks to student
disbursement info by check number.
Views of responsible officials: Management agrees with the finding and has developed a plan to correct
the finding.