Finding Text
FINDING 2023-002: LATE REFUNDS FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION
PROGRAM NAME: SFA CLUSTER
ALN: 84.063, 84.268
FEDERAL AWARD YEAR: 2021-2022, 2022-2023
Compliance Requirement: Special Tests and Provisions - Return of Title IV Funds (N.) Criteria: The Department of Education requires that all refunds be made within 45 days of a student’s withdrawal (34 CFR 668.22, 685.306). Condition: We tested twelve drop students and noted three late refunds. We consider this finding to be a material weakness. Cause: The condition was caused by a breakdown in controls over paying refunds. Effect or Potential Effect: The result is the College retained funds which should have been returned to the Department of Education. Statistical sampling was not used when making sample selections. Questioned Costs : $10,739 Recommendation: We recommend the College review the remaining refunds for timeliness, post a letter of credit to remain compliant and increase controls over refunds. Views of Responsible Officials: The College agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.