Finding Text
Federal Agency: U.S. Department of Education
Federal Program Name: Student Financial Aid Cluster
Assistance Listing Number: 84.007, 84.033, 84.063, 84.268
Award Period: July 1, 2022 – June 30, 2023
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters
Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 668.164(h)(2) states
that an institution that attempts to disburse funds by check and the check is not cashed, the institution
must return the funds to the Department of Education no later than 240 days after the date it issued that
check.
Condition: During our testing of refund checks, we noted student refunds of Title IV federal financial
aid were outstanding more than 240 days.
Questioned Costs: $11,438.
Context: During our testing, we noted 16 out of 16 refund checks outstanding over 240 days which
were not returned to the Department of Education.
Section III – Findings and Questioned Costs – Major Federal Programs (Continued)
2023-004 – Title IV Refund Checks (Continued)
Cause: The University did not have a process in place to return Title IV refund checks outstanding over
240 days.
Effect: The University is not in compliance with Department of Education requirements that all student
refund checks that are outstanding for more than 240 days be returned to the Department of Education.
Repeat Finding: No.
Auditors’ Recommendation: We recommend the University review its policies and procedures related
to outstanding student refund checks to ensure they are being returned to the Department of Education
after 240 days.
Views of Responsible Officials: There is no disagreement with the finding.