Finding Text
Finding 2024-002: Policies and Procedures Related to Credit Balances – SFA Cluster (significant deficiency)
Statement of Condition: From our testing sample, we found six (6) instances where credit balances were not properly refunded to students.
Criteria: In accordance with 34 CFR 668.164, Disbursing Funds, a title IV credit balance occurs whenever the amount of title IV program funds credited to a student’s ledger account for a payment period exceeds the amount assessed the student for allowable changes associated with that payment period. A title IV credit balances must be paid directly to the student or parent as soon as possible, but no later than 1) fourteen (14) days after the balance occurred if the credit balance occurred after the first day of classes of a payment period or 2) fourteen (14) days after the first day of class of a payment period if the credit balance occurred on or before the first fay of class of that payment period.
Effect of Condition: We found six (6) instances where title IV credit balances were not refunded timely.
Cause of Condition: The University does not consistently follow their internal policies.
Recommendation: We recommend the University develop policies and procedures to address this issue.
Management’s Response: Management agrees and will submit a Corrective Action Plan to implement
these recommendations immediately.