Finding Text
Federal Agency: U.S. Department of Education
Federal Program Name: Federal Supplemental Educational Opportunity Grants; Federal Work Study Program; Federal Pell Grant Program; Federal Direct Student Loans
Assistance Listing Number: 84.007; 84.033; 84.063; 84.268
Federal Award Identification Number and Year: P007A242562; P033A242562; P063P241812; P063Q231812; P268K251812 - 2024
Award Period: July 01, 2023 – June 30, 2024
Type of Finding:
• Significant Deficiency in Internal Control over Compliance, Other Matters
Criteria or specific requirement: The Code of Federal Regulations, 34 CFR 668.164e states, “Whenever an institution disburses Title IV, HEA program funds by crediting a student’s account and the total of all title IV, HEA program funds credited exceeds the amount of tuition and fees, room and board, and other authorized charges the institution assessed the student, the institution must pay the resulting credit balance directly to the student or parent as soon as possible but –
(1) No later than 14 days after the balance occurred if the credit balance occurred after the first day of class of a payment period; or
(2) No mater than 14 days after the first day of class of a payment period if the credit balance occurred on or before the first day of class of that payment period.
Condition: Student Title IV credit balances were not refunded within the required 14-day time frame.
Questioned costs: None.
Context: During our testing, 7 students out of a sample of 40 had a credit balance because of receiving Title IV aid that was not returned within the required 14-day timeframe.
Cause: Process and controls in place for ensuring timely return of credit balances were not functioning properly.
Effect: The University did not refund Title IV credit balances within 14 days as required by the Department of Education.
Repeat finding: No.
Recommendation: We recommend the University evaluate its procedures and review policies in overseeing student credit balances to ensure credit balances are returned within the required 14 day timeframe.
Views of responsible officials: There is no disagreement with the audit finding.