Finding Text
Finding 2024-006 – N. Special Tests and Provisions – Disbursement to or on Behalf of Students – Credit Balances
Information on Federal Program(s) – Student Financial Assistance Cluster (ALN’s 84.007, 84.063, 84.268, 84.379)
Criteria or Specific Requirement – Title IV regulations (34 CFR 668.164(h)) require institutions to pay Title IV credit balances directly to the student or parent borrower within 14 days after (1) the first day of class of a payment period if the credit balance occurred on or before that day, or (2) the balance occurred if that was after the first day of class.
Condition – The University did not refund credit balances to certain students within the required timeframe.
Cause - Administrative oversight and insufficient internal controls.
Effect or Potential Effect – The University was not in compliance with the federal guidelines over credit balances from student financial assistance.
Questioned Costs – None.
Context – 3 of 40 Title IV credit balances tested were not paid within the required timeframe.
Indication of Repeat Finding - No similar findings noted in the prior year.
Recommendation – We recommend the University enhance its procedures and internal controls to ensure that Title IV credit balances are paid to students timely.
Views of Responsible Officials – The University acknowledges that we were not in compliance during fiscal year 2024 with the federal guidelines to refund the student credit balances in a timely manner for the students in question. There was significant employee turnover at the University in the business office during fiscal year 2024 and training of new employees was ongoing at that time. This resulted in the delay in the student refunds within the sample selection that the auditors chose during fiscal year 2024. Since then the new and current staff members have been fully trained on their duties and responsibilities. Everyone involved has been informed of the student refund policies and requirements per the Title IV regulations. There have been procedures implemented to prevent this from being a repeat audit finding in the future.