Finding 614444 (2022-004)

Significant Deficiency
Requirement
N
Questioned Costs
$1
Year
2022
Accepted
2023-03-30
Audit: 28916
Organization: Hodges University, Inc. (FL)

AI Summary

  • Core Issue: The University failed to return unclaimed refund checks within the required 240-day period, leading to noncompliance with federal regulations.
  • Impacted Requirements: According to 34 CFR 668.164(h)(2), uncashed checks must be returned to the Secretary within 240 days.
  • Recommended Follow-Up: The University should review and improve its procedures for handling outstanding student checks to ensure timely returns to the Department of Education.

Finding Text

2022?004 240 Day Requirement for Unclaimed R2T4 Checks Federal Agency: Department of Education Federal Program Title: Student Financial Aid Cluster CFDA Number: 84.268 ? Federal Direct Student Loans, 84.063 ? Pell Grant Program, 84.007 ? Supplemental Education Opportunity Grant program, 84.033 ? Federal Work Study Program Award Period: July 1, 2021 through June 30, 2022 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 Secretary no later than 240 days after the date it issued that check. Condition: During our testing it was noted that the University did not return certain unclaimed refund checks within the required time frame. Questioned costs: Known questioned costs totaling $2,183. Context: We identified 13 checks totaling $2,183 related to return of Title IV funding that were outstanding for more than 240 days as of June 30, 2022. Cause: The University?s policies and procedures did not ensure that the checks were returned to the Secretary in a timely manner. Effect: Noncompliance with the 240 day requirement. Repeat Finding: No. Recommendation: We recommend that the University review its procedures related to outstanding student checks to ensure they are being returned to the Department of Education within 240 days. Views of responsible officials: See Corrective Action Plan prepared by the University.

Categories

Questioned Costs Student Financial Aid Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 38001 2022-006
    Significant Deficiency
  • 38002 2022-004
    Significant Deficiency
  • 38003 2022-004
    Significant Deficiency
  • 38004 2022-004
    Significant Deficiency
  • 38005 2022-002
    Significant Deficiency Repeat
  • 38006 2022-003
    Significant Deficiency Repeat
  • 38007 2022-004
    Significant Deficiency
  • 38008 2022-005
    Significant Deficiency
  • 38009 2022-007
    Significant Deficiency Repeat
  • 614443 2022-006
    Significant Deficiency
  • 614445 2022-004
    Significant Deficiency
  • 614446 2022-004
    Significant Deficiency
  • 614447 2022-002
    Significant Deficiency Repeat
  • 614448 2022-003
    Significant Deficiency Repeat
  • 614449 2022-004
    Significant Deficiency
  • 614450 2022-005
    Significant Deficiency
  • 614451 2022-007
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $4.07M
84.425 Education Stabilization Fund $3.49M
84.063 Federal Pell Grant Program $1.97M
84.007 Federal Supplemental Educational Opportunity Grants $168,308
84.033 Federal Work-Study Program $23,000