Finding Text
Criteria: Regulations require that the Institution calculate refunds for students who withdrew during the semester, and any refunds should be remitted to the Department of Education in a timely manner, typically within 45 days of withdrawal.
Condition: Eleven students were selected for withdrawal test work. Of these eleven students, the Institution calculated an amount that needed to be returned for seven (four students tested did not require a return of any funds). Two of those students who required funds be refunded were not returned timely.
Cause: Process and controls over the return of funds for students are insufficient.
Effect: Funds were held in the University’s cash account longer than necessary and such funds were no longer technically the property of the University after the student withdrew from the University.
Questioned costs: $-0- Identification of repeat findings: Yes, see FA-2023-005.
Recommendation: The University should increase its efforts through training to ensure that federal refunds are calculated and remitted timely when students withdraw from the Institution.
Views of responsible officials: The University agrees with the finding. See Client’s Corrective Action Plan – Single Audit Findings.