Finding Text
Finding 2023-004
Federal Agency Name: U.S. Department of Education Program Name: Student Financial Assistance Cluster
ALN: 84.007, 84.033, 84.063, 84.268 and 84.379
Federal Award Number: P007A224069, P033A224069, P063P212290, P063P222290, P268K222290, P268K232290, P379T222290, P379T232290
Award Year: 2022-2023
Type of Finding: Material Weakness in Internal Control over Compliance and Material
Noncompliance
Compliance Requirement: Special Tests and Provisions – Disbursements to or on Behalf of Students Criteria: Per 34 CFR 668.164(h), a Title IV credit balance occurs whenever the amount of
Title IV program funds credited to a student’s ledger account for a payment
period exceeds the amount assessed the student for allowable charges associated with that payment period. Credit balances must be paid directly to the student or parent as soon as possible, but no later than fourteen days after the balance occurred if the credit balance occurred after the first day of class.
If the University retains the credit balance on the student account, the University must obtain the student or parent’s authorization prior to retaining the credit balance.
Condition: We tested a sample of 60 students who received Title IV funds during the year. We noted four students with Title IV credit balances on their account, and no parent or student authorization of the retained credit balance.
Cause: Student Financial Aid office policy did not require obtaining an authorization for retaining a credit balance on student accounts. Accordingly, staff did not obtain authorization for credit balances retained beyond fourteen days.
Effect: In conjunction with the missing notifications in finding 2023-003, certain students may have been temporarily unaware that they had Title IV funds applied to their account and available for their use.
Questioned Costs: None reported.
Context/Sampling: A nonstatistical sample of 60 students who received $686,202 in Title IV Aid, out of a population of 953 students who received $9,993,184 in Title IV aid. 4 of the students had unauthorized credit balances on their accounts. These students received $53,279 in Title IV aid.
Repeat Finding from
Prior Year: No
Recommendation: We recommend the University update its Student Financial Aid and Business Office policy to require monitoring for Title IV credit balances and require authorization for credit balance retention to be signed for all students intending to leave Title IV aid balances on their accounts.
View of Responsible Officials: Management agrees with the finding. See Corrective action plan.