Finding Text
Audit Finding Reference Number
2023 - 004 - Student Credit Balance
Federal Program and Specific Federal Award Identification
CFDA Title and Number
84.063 Federal Pell Grant Program (PELL)
84.268 Federal Direct Student Loans (Direct)
Federal Award Year
June 30, 2023
Federal Agencies
U. S. Department of Education
Pass-Through Entity
Not applicable
Criteria
OMB 2 CFR 200, Subpart F Compliance Supplement, Part 5 Student Financial Assistance Programs, Section III Part N – Special Tests and Provisions stipulate that disbursements to students must be made in accordance with required time frames. Title IV regulations 34 CFT 668.164 (e) specifies that whenever a school credits Student Financial Aid (SFA) program funds to a student’s account, and those funds exceed the student’s allowable charges, a SFA credit balance occurs. The school must pay the credit balance to the student as soon as possible, but no later than fourteen (14) days after the later of the date the balance occurred on the student’s account or the first day of classes of the payment period.
Conditions and Contexts
I noted during my thirty (30) out of ninety-three (93) students audit had student financial aid credit balances but ABC did not refund the credit balances to the students within the fourteen (14) day requirement.
Cause
It appears that ABC did not ensure the students receive their refunds checks within the prescribed timeframe.
Repeat Finding
No.
Recommendation
I recommend that management of ABC take immediate steps to ensure that students receive their refund checks within the required timeframes as required by Title IV regulations.
Management’s Response
Management concurs with this finding. The College will review and adhere to its practices, policies, and procedures along with federal regulations as it relates to resolving credit balances. The College will resolve credit balances timely and within the 14-day period as defined in the Federal guidelines.
Responsible Administrators: Director of Financial Aid & Chief Financial Officer
Effective: Immediately and ongoing