Finding Text
2023-005 Special Test: 240 Day Checks
Federal Agency: Department of Education
Federal Program Title: Student Financial Assistance Cluster
ALN Numbers: Various
Award Period: July 1, 2022 through June 30, 2023
Type of Finding:
• Significant Deficiency in Internal Control Over Compliance
• Other Matters
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.
Condition: Twenty checks totaling $12,138.00 related to student refunds of Title IV federal financial aid were outstanding more than 240 days as of June 30, 2023.
Questioned Costs: $12,138
Context: During our testing, it was noted the University does not have a process in place to ensure checks are refunded to ED after 240 days outstanding.
Cause: The University did not have a process in place to ensure all outstanding checks over 240 days was properly returned to the ED.
Effect: The University is not in compliance with Department of Education requirements that all student refund checks that are outstanding for more than 240 days be returned to the Department.
Repeat Finding: No
Recommendation: We recommend that the University review its procedures related to outstanding student refund checks to ensure they are being returned to the Department of Education after 240 days.
Views of Responsible Officials: There is no disagreement with the audit finding.