Finding Text
Federal Program Information: Student Financial Aid Cluster (various ALN #?s) Criteria or Specific Requirement: N. Special Tests and Provisions ? Credit Balances ? Federal regulations (34 CFR 668.164(h)) state that when a Title IV Higher Education Act (?HEA?) credit balance occurs on a student?s account, the University must be pay the balance directly to the students or parents as soon as possible, but no later than 14 days after the balance occurred if the credit balance occurred after the first day of class of a payment period, or 14 days after the first day of class of a payment period if the credit balance occurred on or before the first day of class of that payment period. Condition: For certain students identified through our testing, the University did not issue a refund for a credit balance to the student within 14 days of the credit balance occurring as required. Cause: Administrative oversight with respect to the credit balance refund requirements. Effect or Potential Effect: The University is not in compliance with Title IV HEA refund requirements. Questioned Costs: None. Context: For 2 of 25 student refunds selected for testing, the University did not issue the refund within 14 days of the credit balance occurring as required. Identification as a Repeat Finding: There was no similar finding identified during the prior year. Recommendation: We recommend that the University enhance its procedures to ensure that credit refunds are disbursed to students as soon as possible, but no later than 14 days after the credit balance occurs. Views of Responsible Officials: The University Business Office and Financial Planning Office will review the institutional refund policies and put the proper controls in place to disburse Title IV credit balances to students/parents in the required timeframe.