Finding 40120 (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.

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