Finding Text
2024 – 001
Federal Agency: Department of Education
Federal Program Name: Student Financial Assistance Cluster
Assistance Listing Numbers:
84.007 – Federal Supplemental Education Opportunity Grants 84.063 – Federal Pell Grant Program
84.268 – Federal Direct Student Loans
Award Period: July 1, 2023 through June 30, 2024
Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters
Criteria or Specific Requirement:
The Code of Federal Regulations, 34 CFR 668.164(e) states, "Whenever an institution disburses title IV, HEA program funds by crediting a student's account and the total amount of all title IV, HEA program 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:
Through our testing of 64 students whose accounts had a credit balance resulting from federal funds during the year, we noted that 6 students did not have the credit balance refunded within the 14-day period.
Questioned Costs:
N/A
Context:
During our testing, we noted that six students were owed a Title IV credit refund that was not completed within the 14-day period.
Cause:
The University did not properly review Credit Balance required procedures.
Effect:
The University did not refund students within 14 days for credit balances that arose from federal funds as required by DOE regulations.
Repeat Finding:
No.
Recommendation:
We recommend that the University put a process in place to refund student credit balances that arose from federal funds within 14 days.
Views of responsible officials:
Management agrees with the findings and has developed a plan to correct the finding.