Finding Text
FINDING NO. 2022-002: Late Refunds ? Significant Deficiency in Internal Control and Instances of Non-Compliance Federal Program: Student Financial Assistance Cluster Federal Agency: U. S. Department of Education Award Year: 2021-22 Statement of Condition A Return of Title IV Funds payment for one student was not made in a timely manner. Criteria The U.S. Department of Education requires that refunds made electronically under the Return to Title IV Funds provisions be returned within 45 days of a student?s official withdrawal date to be considered timely. (34 CFR 668.22.) Effect A Return of Title IV Funds payment was not paid within the required time frame for 1 of the 31 student files tested for refund compliance. The Institution?s internal control over the related compliance requirement did not function as designed and was not effective in detecting this instance of non-compliance. Therefore, this finding represents a significant deficiency in internal control. The late payment associated with this finding is: Amount of Refund Program Paid Withdrawal Date Refund Due Date Refund Date Days Late $ 818 FDLP 11/4/21 1/6/22 1/25/22 19 Cause In this instance of noncompliance, the Institution?s internal control did not function as designed and therefore the Institution?s procedures for processing refunds and Return of Title IV Funds payments were not followed. Recommendation The Institution should take steps to ensure that its procedures for the timely disbursement of refunds and Returns of Title IV Funds payments are strictly followed. Institution Comments The Institution does not dispute this finding. The Institution has procedures in place to ensure full compliance as detailed in the Corrective Action Plan.