Finding Text
Assistance Listing Number, Federal Agency, and Program Name - 84.268, 84.063, and 84.007, Department of Education, Student Financial Aid Cluster Federal Award Identification Number and Year - P268K221640, P063P121640, and P007A212038 Pass-through Entity - N/A Finding Type - Significant deficiency Repeat Finding - No Criteria - A Title IV, Higher Education Act (HEA) credit balance occurs whenever the amount of Title IV, HEA program funds credited to a student?s ledger account for a payment period exceeds the amount assessed the student for allowable charges associated with that payment period, as provided under paragraph (c) of this section. A Title IV, HEA credit balance must be paid directly to the student or parent as soon as possible, but no later than: i.14 days after the balance occurred if the credit balance occurred after the first day of class of that payment period ii.14 days after the first day of class of a payment period if the credit balance occurred on or before the first day of class of that payment period. (34 CFR 668.164 (h)(1)) Condition - Certain credit balances were not refunded to students within 14 days. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - Of the 25 students tested, there were 2 students who had credit balances created by Title IV funds that were not refunded within 14 days. Cause and Effect - The University does not have a control or process in place to ensure that credit balances are refunded to students within 14 days in all situations. Specifically, it was observed that one individual is responsible for executing the refund of credit balances, and a process was not in place to rotate these duties while the staff member was on a personal leave during a period of time during the fiscal year ended June 30, 2022. As a result, credit balances were not refunded on a timely basis. Recommendation - The University should implement controls to ensure that credit balances are refunded to students within 14 days. Specifically, the University should ensure additional resources are allocated to this process to ensure continuity of operating effectiveness in the event of personnel changes or unexpected leaves. Views of Responsible Officials and Planned Corrective Actions - The University concurs with the finding. The University will identify one or more additional staff members who can perform this function in the event of illness or absence, cross-train these individuals, and ensure permissions are granted, ensuring appropriate segregation of duties.