Finding 511936 (2024-002)

Significant Deficiency
Requirement
P
Questioned Costs
$1
Year
2024
Accepted
2024-11-23

AI Summary

  • Core Issue: The University failed to return eight student refund checks totaling $494.20 that were outstanding for over 240 days, violating federal regulations.
  • Impacted Requirements: Compliance with 34 CFR 668.164(h)(2) regarding the timely return of uncashed checks to the Department of Education.
  • Recommended Follow-up: The University should enhance its procedures for managing outstanding student refund checks to ensure compliance with federal requirements.

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.

Categories

Questioned Costs Student Financial Aid Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties Significant Deficiency

Other Findings in this Audit

  • 511931 2024-001
    Significant Deficiency
  • 511932 2024-001
    Significant Deficiency
  • 511933 2024-001
    Significant Deficiency
  • 511934 2024-002
    Significant Deficiency
  • 511935 2024-002
    Significant Deficiency
  • 511937 2024-003
    Significant Deficiency
  • 511938 2024-003
    Significant Deficiency
  • 511939 2024-003
    Significant Deficiency
  • 511940 2024-004
    Significant Deficiency Repeat
  • 511941 2024-004
    Significant Deficiency Repeat
  • 1088373 2024-001
    Significant Deficiency
  • 1088374 2024-001
    Significant Deficiency
  • 1088375 2024-001
    Significant Deficiency
  • 1088376 2024-002
    Significant Deficiency
  • 1088377 2024-002
    Significant Deficiency
  • 1088378 2024-002
    Significant Deficiency
  • 1088379 2024-003
    Significant Deficiency
  • 1088380 2024-003
    Significant Deficiency
  • 1088381 2024-003
    Significant Deficiency
  • 1088382 2024-004
    Significant Deficiency Repeat
  • 1088383 2024-004
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $18.59M
84.063 Federal Pell Grant Program $7.04M
84.031 Higher Education Institutional Aid $855,983
11.028 Connecting Minority Communities Pilot Program $701,874
84.038 Federal Perkins Loans Outstanding $573,040
84.007 Federal Supplemental Educational Opportunity Grants $460,369
15.904 Historic Preservation Fund Grants-in-Aid $414,268
84.033 Federal Work-Study Program $209,403
43.009 Mission Support $140,415
47.076 Stem Education (formerly Education and Human Resources) $87,223
47.070 Computer and Information Science and Engineering $53,354
93.855 Allergy and Infectious Diseases Research $37,476
93.113 Environmental Health $24,603
93.859 Biomedical Research and Research Training $14,454
93.788 Opioid Str $12,752
43.008 Office of Stem Engagement (ostem) $12,299
84.116 Fund for the Improvement of Postsecondary Education $11,320
43.001 Science $9,743