FAC Explorer

Finding 562132 (2024-003)

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Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-06-02
Audit: 357766
Organization: Los Angeles Chapter National Tooling & MacHining Association Training Centers Trust (CA)
Auditor: Vasquez & Company LLP

AI Summary

  • Issue: A student experienced a delay in receiving their credit balance, which was paid 30 days late.
  • Requirements Impacted: Timely distribution of credit balances and obtaining student authorization for holding funds were not followed.
  • Recommended Follow-up: Review and improve processes to ensure timely payments and proper authorization from students.

Finding Text

Special Tests and Provision: Disbursements to and or on Behalf of Students: Untimely Distribution of Credit Balance to Student We found that 1 out of 20 students selected for testing had a credit balance after the disbursement of Title IV funds on June 12, 2023. However, the institution did not pay the resulting credit balance directly to the student until July 12, 2023—30 days after the credit balance was created. Furthermore, the institution did not obtain voluntary authorization from the student to allow the credit balance to be held.

Corrective Action Plan

To ensure full compliance with Title IV regulations, the Institution is implementing the followingcorrective actions: 1. Enhanced Monitoring & Timely Processing of Credit Balances: The Institution will implement a weekly review process to identify and track all student accounts with credit balances. This will ensure that any resulting credit balance is disbursed within the required 14-day timeframe. A dedicated staff member will be assigned to monitor and track credit balances to prevent delays. 2. Strengthening Internal Controls & Oversight: A Title IV Compliance Checklist will be developed to ensure that every step in the credit balance disbursement process is completed on time. Dualreview procedures will be implemented, requiring an additional financial aid staff member to verify that all credit balances are disbursed within the required timeframe 3. Student Authorization Procedures: The Institution will update its financial aid policies to include voluntary credit balance authorization forms for students who wish to allow the Institution to retain excess funds beyond the required period. All students receiving Title IV funds will be provided with the option to complete and submit an authorization form at the time of enrollment 4. Staff Training & Compliance Awareness: Financial aid and student accounts personnel will undergo annual training on Title IV credit balance requirements, disbursement procedures, and compliance deadlines. Staff will be trained on the importance of proactive monitoring and timely disbursements to prevent future delays. Personnel Responsible for Implementation: Danielle Skinner Position of Responsible Personnel: President Expected Date of Implementation: Immediate

Categories

Student Financial Aid Reporting Special Tests & Provisions

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $832,607
84.268 Federal Direct Student Loans $495,733
84.425 Education Stabilization Fund $330,146