Finding Text
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: Three checks totaling $11,567 related to student refunds of Title IV federal financial aid were outstanding more than 240 days as of May 31, 2023.
Questioned Costs: $11,567
Context: During our testing, it was noted the College does not have a process in place to ensure timeliness and accuracy of checks refunded to ED after 240 days outstanding.
Cause: The College did not have a process in place to ensure all outstanding checks over 240 days was properly returned to the ED.
Effect: The College 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 College 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.