Finding Text
Federal agency: U.S. Department of Education
Federal program title: Student Financial Aid Cluster
ALN Number: 84.268
Federal Award Identification Number: P268K231568, P268K241568
Award Period: July 1, 2023 June 30, 2024
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters
Criteria or specific requirement:
Internal Control - Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain
effective internal control over the Federal award that provides reasonable assurance that the non-
Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the
terms and conditions of the Federal award. These internal controls should be in compliance with
guidance in Standards for Internal Control in the Federal Government issued by the Comptroller
General of the United States or the Internal Control Integrated Framework, issued by the Committee
of Sponsoring Organizations of the Treadway Commission (COSO).
Compliance - The Code of Federal Regulations, 34 CFR 668.164(h) requires that credit balances on a
student's ledger account derived from title IV funds must be returned to the student or parent as soon
as possible, but no later than 14 days after the credit balance occurred.
Condition: A credit balance was paid after 15 days, which exceeds the 14-day requirement to return
the credit balance to the student.
Questioned costs: None
Context: This condition occurred for 1 out of 2 credit balances selected for testing.
Cause: The voucher was inadvertently missed in our accounts payable process. As soon as the error
was discovered, payment was remitted. We have implemented processes going forward to verify that
all Parent Plus loans are paid out within 14 days.
Effect: The College did not refund the student within 14 days for credit balances that arose from federal
funds as required by regulations.
Repeat Finding: No
Recommendation: We recommend the College review and revise its policies for identifying and paying
credit balances to ensure that it is paid to the student or parent as soon as possible, but no more than
14 days after the occurrence.
Views of responsible officials: There is no disagreement with the audit finding.