Finding Text
2023 – 003 Special Tests: 240 Day Checks
Federal Agency: Department of Education
Federal Program Title: Student Financial Assistance Cluster
Federal Assistance Listing Number: Various
Federal Award Identification Number and Year: N/A
Pass-Through Agency: N/A
Pass-Through Number: N/A
Award Period: June 1, 2022 – May 31, 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: Two checks totaling $3,074 related to student refunds of Title IV federal financial aid were
outstanding more than 240 days as of May 31, 2023.
Questioned Costs: $3,074
Context: During our testing, it was noted the University does not have a process in place to ensure
timeliness and accuracy of checks 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
Auditor’s 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 and Planned Corrective Actions: There is no disagreement with the
audit finding.