Finding Text
Federal Program information: Federal Supplemental Educational Opportunity Grants (ALN: 84.007), Federal Work-Study Program (ALN: 84.033), Federal Pell Grant Program (ALN: 84.063), Federal Direct Student Loans (ALN: 84.268), Teacher Education Assistance for College and Higher Education Grants (ALN: 84.379) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): N. Special Tests and Provisions ? Disbursements to or on Behalf of Students - Credit Balances - An institution is required to refund credit balances on student accounts within 14 days of the creation of the credit balance. If an institution attempts to refund the credit balance by check and the check is not cashed, the institution must return the funds to the Department of Education no later than 240 days after the date the school issued the check. Condition: The University did not refund credit balances to certain students within the required timeframe. Cause: Administrative oversight with respect to the disbursement of federal awards. Effect or Potential Effect: The University was not in compliance with the required federal guidelines over credit balances from student financial assistance. Questioned Costs: None. Context: For 3 of 40 Federal Student Aid credit balances selected for testing, the credit balance was not refunded to the student within the required 14-day timeframe. Identification as a Repeat Finding: This is a repeat finding from prior year. This was reported as Finding 2021-003 in the prior year schedule of findings and questioned costs. Recommendation: We recommend that the University enhance its policies and procedures by implementing a process to disburse credit balances created by federal awards within the required time frame.