Finding Text
Federal Program: 84.268
Criteria: Under 34 CFR 668.164(l)(3), checks sent to students that are not returned to the institution (i.e., not cashed) must be returned to the Secretary no later than 240 days after the date the checks were issued.
Condition: For the year under audit, the University reported $17,809 of outstanding (uncleared) refund checks to students in excess of 240 days.
Cause: Management was unaware of the 240 day requirement.
Effect: The University did not comply with 34 CFR 668.164(l)(3).
Context: N/A.
Recommendation: The University should implement a policy that future uncleared student checks are monitored for compliance with the 240 day requirement and one or more procedures that provides reasonable assurance of complying with this policy (possibly as part of reviewing bank reconciliations). Also, all checks older than 240 days should be sent (returned) to the Secretary.
Management’s
View: See Corrective Action Plan.