Finding Text
Federal Agency: U.S. Department of Education
Federal Program Title: Student Financial Assistance Cluster
Assistance Listing Number: 84.268 – Federal Direct Student Loans
Pass-Through Agency: N/A
Pass-Through Number(s): N/A
Award Period: June 1, 2023 – May 31, 2024
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria or specific requirement: The Code of Federal Regulations, 34 CFR 675.16 states whenever an institution disburses FWS funds by crediting a student's account and the result is a credit balance, the institution must pay the credit balance directly to the student as soon as possible, but no later than 14 days after the credit balance occurred on the account.
Condition: One student refund resulting from the Parent Plus loan was not refunded for 16 days.
Questioned costs: None.
Context: A control system to prevent and detect errors in the reporting process was not created to
ensure all required compliance requirements were met.
Cause: The student's refund was set to be sent out on but it fell on Labor day it didn't get sent out until after the 14 days.
Effect: The University is not in compliance with Department of Education requirements that all credit balances be paid directly to the student as soon as possible, but no later than 14 days after the credit balance occurred.
Repeat finding: No
Recommendation: We recommend the University implement a process to ensure that any credit balances arising from federal student financial aid are made within the 14 day time limit imposed by the Department of Education.
Views of responsible officials: There is no disagreement with the audit finding.