Finding Text
2024 - 004 – Title IV Outstanding Checks
Federal Agency: U.S. Department of Education
Federal Program Title: Student Financial Assistance Cluster
Federal Assistance Listing Number: 84.007, 84.033, 84.063, 84.268
Award Period: 7/1/23-6/30/24
Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters
Criteria or specific requirement: The Code of Federal Regulations, 34 CFR 668.164(l)(3) 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: During our testing of Title IV checks, we noted refunds of Title IV financial aid outstanding more than 240 days not returned to the Department of Ed.
Questioned costs: $5,420
Context: During our testing, we noted 5 Title IV checks outstanding over 240 days that were not returned to the Department of Education.
Cause: The University did not have a process in place to ensure Title IV checks outstanding more than 240 days were returned within the required timeframe.
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 of Education.
Recommendation: We recommend the University review its policies and procedures related to outstanding Title IV checks to ensure they are being returned to the Department of Education after being outstanding more than 240 days.
Views of responsible officials: Management agrees with the finding.