Finding Text
2024 – 002
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(h)(2) states that an institution that attempts to disburse funds by check and the check is not cashed, the institution must return the funds to the Secretary no later than 240 days after the date it issued that check.
Condition:
Eight checks totaling $494.20 related to student refunds of Title IV federal financial aid were outstanding more than 240 days as of June 30, 2024.
Questioned Costs:
$494.20
Context:
The University did not have an official process is in place to ensure the funds never escheat back to the state or other agencies.
Cause:
The University did not properly review SFA Outstanding Student Title IV Check required procedures.
Effect:
The University is not in compliance with Department of Education requirements that all student refund checks that are outstanding for more than 240 days be returned to the Department.
Recommendation:
We recommend that the University review its procedures related to outstanding student refund checks to ensure they are being returned to the Department of Education after 240 days.
Views of responsible officials:
Management agrees with the findings and has developed a plan to correct the finding.