Finding 555196 (2024-002)

Finding 2024-002 Federal Assistance Listing Number: 84.268 Subprogram Number(s): 84.268 Federal Agency: U.S. Department of Education Program Name: Federal Direct Student Loans Type(s) of Compliance Requirements: Special Tests and Provisions Type of Finding: Internal Control over Compliance – Significant Deficiency; Noncompliance Criteria: Under the disbursement to or on behalf of students requirements, credit balances are to be paid to the student or parent borrower (1) within 14 days after a) the first day of class of a payment period if the credit balance occurred on or before that day, or b) the balance occurred if that was after the first day of class or 2) if the institution obtained an authorization to hold credit balances and was not on the reimbursement or heightened cash monitoring payment methods, by the end of the loan period or last payment period in the award year for which the funds were awarded. Condition: The College refunded a credit balance 22 days after the first day of class without authorization to hold the balance. Cause: The College failed to process the refund in a timely manner due to turnover in staff. Effect: The College is noncompliant with the requirements of the Student Financial Aid program. Recommendation: We recommend that the College develop procedures and related controls to ensure a timely processing of the refunds.