Finding 612321 (2022-002)

Finding 2022-002 Special Tests and Provisions ? Disbursements to or on behalf of students Grantor(s): Department of Education Program: Student Financial Aid Cluster Assistance Listing#(s): Various Title: Student Financial Aid Cluster Award Year: 7/2021 ? 6/2022 Award #: N/A Pass-through number: N/A Criteria Per the 2022 OMB Compliance Supplement, where disbursements created a credit balance in the student account and the student or parent did not provide an authorization for the institution to retain funds, the institution is required to provide the credit balance to the student within 14 days of the date the balance was created. Condition Through testing disbursements to or on behalf of students enrolled at the East Falls campus, it was noted that 1 student of a sample of 25 had a credit balance that was not refunded within the required 14-day period. For this particular student, the credit balance was created on 10/18/2021 and refunded to the student on 11/15/2021, which is 28 days later. Cause The cause of the finding is due to a lapse in control operation to ensure that the student was refunded in a timely manner. Effect The student received their refund later than the deadline required by the regulations. Questioned Costs None. Recommendation Management should enhance the control in place to ensure that when credit balances are created in student accounts that funds are returned to the student within the 14-day window. Management should consider implementing controls to notify them when there is a credit balance, or consider automating the process for refunds. Management?s View and Corrective Action Plan Management?s response is included in ?Management?s Views and Corrective Action Plan? included in this report.