Finding Text
2024 – 001 Title IV Credit Balance Refund
Federal Agency: U.S. Department of Education
Federal Program Name: Student Financial Assistance Cluster
Federal Assistance Listing Number: 84.007, 84.033, 84.038, 84.063, 84.268
Award Period: 7/1/2023 – 6/30/2024
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters
Criteria or specific requirement: The Code of Federal Regulations, 34 CFR 668.164(e) states, that whenever an institution disburses Title IV program funds by crediting a student's account and the total amount of all Title IV funds credited exceeds the amount of tuition and fees, room and board, and other authorized charges the institution assessed the student, the institution must pay the resulting credit balance directly to the student or parent as soon as possible but—
(1) No later than 14 days after the balance occurred if the credit balance occurred after the first day of class of a payment period; or
(2) No later than 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.
Condition: During our testing, we noted one student's credit balance was not refunded within 14 days.
Questioned costs: $3,711
Context: During our testing, we noted that one student was owed a Title IV credit refund as of January 2024 that was not refunded until April 2024.
Cause: The report used by the College to monitor Title IV credit balance refunds, did not include all the information to capture this student.
Effect: The College did not refund the student within 14 days.
Repeat Finding: No.
Recommendation: We recommend the College evaluate its policies and procedures to ensure there is a process in place to ensure timely refund of Title IV credit balances.
Views of responsible officials: There is no disagreement with the audit finding.