Finding Text
FINDING 2022-003 ? Authorization to Hold Credit Balances Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Pell Grant Program Federal Direct Loan Program Federal Supplemental Educational Opportunity Grant ALN and Program Expenditure: 84.063 ($339,284) 84.268 ($506,590) 84.007 ($ 10,703) Award Number: P063P211726 P268K211726 P007A216494 Federal Award Year: July 1, 2021 to June 30, 2022 Questioned Costs: $-0- Condition Found: For three of the twenty-five students in our sample, the University held Title IV credit balances for longer than fourteen days without written authorization. Criteria: An institution may not hold a credit balance, which is caused by federal student financial aid funds, on a student?s account for more than fourteen days without written authorization from the student. Cause: Miscommunication between the cashier, student financial aid office, and accounts payable clerk caused a delay with issuing the credit balance refund check to the student. Possible Asserted Effect: The Title IV credit balances were not returned timely to the students. Repeat Finding: There was not a similar finding in the previous year. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: The credit balances were returned to all three students in question before the end of the academic year. Communication should be improved between the offices involved in the disbursement process to ensure that credit balances are refunded timely. Management Response: The credit balances were returned to the students in question before the end of the academic year. Several changes in staffing have occurred. The financial aid office will follow-up with the cashier and accounts payable clerk to ensure that the credit balance refunds requested are processed timely.