Finding Text
2023–003 240 Day Requirement for Unclaimed Checks
Federal Agency: Department of Education
Federal Program Title: Student Financial Aid Cluster
CFDA Number: 84.268 – Federal Direct Student Loans, 84.063 – Pell Grant Program, 84.007 – Supplemental Education Opportunity Grant program
Award Period: July 1, 2022 through June 30, 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: During our testing it was noted that the University did not return certain unclaimed checks within the required time frame.
Questioned costs: Known questioned costs totaling $9,284.
Context: We identified 27 checks totaling $9,284 related to Title IV funding that were outstanding for more than 240 days as of June 30, 2023.
Cause: The University’s policies and procedures did not ensure that the checks were returned to the Secretary in a timely manner.
Effect: Noncompliance with the 240 day requirement.
Repeat Finding: Yes, prior year finding 2022-004.
Recommendation: We recommend that the University review its procedures related to outstanding student checks to ensure they are being returned to the Department of Education within 240 days.
Views of responsible officials: See Corrective Action Plan prepared by the University.