Finding Text
2023-003 Special Tests and Provisions
Federal agency: U.S Department of Education
Federal program title: Student Financial Assistance Cluster
Assistant Listing Number: 84.007/84.033/84.063/84.268
Federal Award Identification Number: P007A221105 - P033A221105 - P063P221336 - P268K231336
Award Period: July 1, 2022 to June 30, 2023
Type of Finding:
• Compliance, Other Matters
• Significant Deficiency in Internal Control over Compliance
Criteria or specific requirement: The Department of Education requires that Title IV credit balances must be paid to the student or parent no later than 14 days after the credit balance occurred. (34 CFR 164(h)(2)).
Per 2 CFR 200.303, nonfederal entities receiving federal awards are required to establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements.
Condition: The College did not timely refund credit balances to the student or parent.
Context: We identified 1 out of 40 students tested that was not refunded within the required 14 days, the credit balance was refunded 7 days late.
Questioned costs: None.
Cause: The Student Financial Aid office had an automated process to ensure all refunds were issued in 14 days failed to recognize a credit balance in a student's account.
Effect: The student did not have access to Title IV funds timely after disbursement.
Repeat Finding: No.
Recommendation: We recommend that the student financial aid department develop a process to identify all credit balances are paid timely.
Views of responsible officials: Management agrees with the finding.