Finding 40117 (2022-001)

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Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-02-09
Audit: 53433
Organization: William Peace Universirty (NC)
Auditor: Bdo USA LLP

AI Summary

  • Core Issue: The University failed to refund Title IV funds to 3 students within the required 14-day period after a credit balance was created.
  • Impacted Requirements: This violates the compliance requirement outlined in 34 CFR § 668.164(i) for timely disbursement of funds.
  • Recommended Follow-up: The University should expedite its refund process to ensure compliance with the 14-day requirement moving forward.

Finding Text

Federal Program Information: Student Financial Assistance Cluster (Various Federal Assistance Listing Numbers) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): In accordance with the Special Tests and Provisions ? General Title IV Disbursement Criteria compliance requirements, the University is required to return funds to students within 14 days of the disbursement of Title IV funds creating a credit balance within the student?s account. (34 CFR ? 668.164(i)) Condition: For 3 students selected for testing, the University refunded the students outside of the permissible 14-day period after the credit balance was created. Cause: The University was processing amounts for refund, which took longer than the allowable 14-day period. Effect: The University did not comply with the requirement to refund the students within 14 days. Questioned Costs: None. Context: 3 of the 25 students selected for testing. Repeat Finding: This is not a repeat finding from the prior year. Recommendation: We recommend that the University refund students within 14 days of a credit balance being created. Views of responsible officials and planned corrective actions: Management concurs with the finding. The University plans to expedite its review process in order to return funds timely to students once a credit balance is created.

Corrective Action Plan

The Student Accounts Office will return funds to students within 14 days of the disbursement of Title IV funds when those funds create a credit balance on the student account. New procedures have been added within the department to review for credit balances upon their creation to ensure refunds are processed timely for all students owed a refund. Individuals Responsible for Corrective Action Plan: Susan Childs, Associate Vice President for Finance & Controller, 919-508-2033 Completion Date: September 2022

Categories

Special Tests & Provisions Student Financial Aid

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $5.28M
84.063 Federal Pell Grant Program $1.41M
21.027 Coronavirus State and Local Fiscal Recovery Funds $661,799
84.425 Education Stabilization Fund $121,660
84.007 Federal Supplemental Educational Opportunity Grants $80,985
84.033 Federal Work-Study Program $67,386