Finding Text
Audit Finding Reference Number 2022-002 ? Student Credit Balance Federal Program and Specific Federal Award Identification CFDA Title and Number 84.063 Federal Pell Grant Program (PELL) 84.268 Federal Direct Student Loan (Direct) Federal Award Year June 30, 2022 Federal Agencies U. S. Department of Education Pass-Through Entity Not applicable Criteria OMB 2 CFR 200, Subpart F Compliance Supplement, Part 5. Student Financial Assistance Programs, Section III Part N - Special Tests and Provisions stipulate that disbursements to students must be made in accordance with required time frames. Title IV regulations 34 CFR 668.164 (e) specifies that whenever a school credits Student Financial Aid program funds to a student's account, and those funds exceed the student's allowable charges, a SF A credit balance occurs. The school must pay the credit balance to the student as soon as possible, but no later than fourteen (14) days after the later of the date the balance occurred on the student's account or the first day of classes of the payment period. Conditions and Context I noted during my audit, eight (8) out of twenty-five (25) students with student financial aid credit balances but the University did not refund the credit balances to the students within the prescribed fourteen (14) day requirement. Cause It appears the University did not ensure the students received their excess funds refunds within the prescribed timeframe. Questioned Cost For purposes of this condition, I have no questioned costs. Effect The University has not complied with the Title IV requirements resulting in students not receiving their Title IV refunds timely. Repeat Finding No. Recommendation I recommend the University take immediate steps to ensure students receive their Title IV refunds within the required timeframes as required by the federal regulations. Management?s Response During the Fall 2021 semester, the late disbursement of funds was the result of staff being displaced as a result of Hurricane Ida in which the University started on time but had to stop due to the hurricane and its impact. Several staff members were also impacted, and the departments were working short staffed, which filtered into the Spring 2022 semester whereby there was an increase in the reduction of staff within the Office of Business and Finance.