Finding Text
Finding 2022-002 ? Significant Deficiency, Compliance and Control Federal Award No. 84.268, 84.007, 84.033, 84.038, 84.063 & 84.379 U.S. Department of Education Student Financial Aid Cluster ? Special Tests and Provisions Criteria: According to the Federal Student Aid Handbook, Volume 4, Chapter 2, a University must disburse a Title IV credit balance to a student no later than 14 days after the date it was created or no later than 14 days after the first day of class. Condition: In our nonstatistical sample of 40 students, it was noted for three individuals that the credit balances generated by the federal funding were paid to the students between 15 and 33 days after the credit balance was created. Context: For the three students noted, loan disbursements including PLUS Loans generated a credit balance when disbursed separately from the individual awards which were then paid to the students between 15 and 33 days after the credit balance was created. Effect: Funds are held by the University that should be paid to the student. Questioned Costs: There were no questioned costs to report as this finding relates timing of disbursements and is not related to eligibility. Cause: Ottawa University did not have proper process and related controls in place to complete the return within 14 days from the date the credit balance was created. Indication As Repeat Finding: This is a not a repeat finding. Recommendation: The Financial Aid department should review and consider revisions to its processes and related controls in place to complete the disbursement requirements for all students who have a credit balance no later than 14 days after the date it was created or no later than 14 days after the first day of class. Views Of Responsible Officials (Unaudited): Student Accounts Receivable, Controller?s Office, and IT are working together to develop more real-time reporting and tracking for student account refund balances to identify student accounts with refund balances that remain undistributed more than seven days after being created to prioritize those accounts for refund processing. Completion Date: June 30, 2023 Contact Person: Heather Long, Director Student Accounts