Finding 526392 (2024-002)

2024-002 – Special Tests: 240 Day Checks (Significant Deficiency) Criteria: 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: During our testing, it was noted the University does not have a process in place to ensure timeliness and accuracy of checks refunded to ED after 240 days outstanding. Fourteen checks totaling $6,998 related to student refunds of Title IV federal financial aid were outstanding more than 240 days as of June 30, 2024. Cause: The University did not have a process in place to ensure all outstanding checks over 240 days was properly returned to the ED. 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. Repeat Finding from a Prior Year: Yes 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. Management Response: The University now has a process in place to ensure checks are returned on a quarterly basis.