Finding Text
Credit Balances and Heightened Cash Monitoring 2 (HCM2) Compliance DEPARTMENT OF EDUCATION
ALN #: 84.268 and 84.063
Federal Award Identification #: 2021-2022 Financial Aid Year
Condition: The College is required to pay out credit balances created by federal aid before submitting requests for reimbursement to the Department of Education (ED) under HCM2.
Criteria: 34 CFR 668.164(h)(2)
Questioned Costs: $-0-
Context: Out of 40 students tested for holding credit balances, there were 2 students who had a credit balance created by federal direct loans and federal pell grants that were not paid out to the student before submitting reimbursement requests to ED.
Cause: There was not an adequate process in place to identify credit balances created by federal aid and paying them before reimbursement requests were submitted.
Effect: Noncompliance with the Department of Education's cash management and heightened cash monitoring regulations.
Identification as repeat finding, if applicable: N/A
Recommendation: We recommend the College design and implement a process to identify credit balances created by federal aid and disburse them to students within the required timeframe.
Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.