Finding Text
Assistance Listing Number, Federal Agency, and Program Name - 84.268, Department of Education, Federal Direct Student Loans
Finding Type - Significant deficiency
Repeat Finding - No
Criteria - In accordance with 34 CFR 668.164(i), if a check sent to a student or parent is not returned to the institution but is not cashed, the institution must return the funds to the secretary no later than 240 days after the date it issued the check. The Seminary does not have outlined procedures or policy to ensure that the funds are returned to the Department of Education.
Condition - During our review of internal controls, it was noted that the Seminary does not have a policy or procedures in place, as required by the Code of Federal Regulations.
Questioned Costs - N/A
Identification of How Questioned Costs Were Computed - N/A
Context - The Code of Federal Regulations requires a policy and procedure to be in place to ensure uncashed checks are returned to the Department of Education.
Cause and Effect - The lack of having a policy in place could lead to funds not being returned to the Department of Education.
Recommendation - We recommend that a policy be documented and implemented.
Views of Responsible Officials and Corrective Action Plan - The Seminary has implemented a written policy and procedure that complies with regulations.