Finding Text
2022-002: Outstanding Checks Federal Agency: U.S. Department of Education Federal Program: Student Financial Assistance Cluster Assistance Listing Numbers: Various Award Period: July 1, 2021 to June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Condition: During our testing, we noted two outstanding checks which related to federal funding which were not returned to the Department of Education within the 240 days. Criteria or Specific Requirement: The Department of Education requires an institution must return to ED (notwithstanding any state law, such as a law that allows funds to escheat to the state) any Title IV funds, except FWS program funds, that it attempts to disburse directly to a student or parent but they do not receive. If a check is returned, or an EFT is rejected, the institution may make additional attempts to disburse the funds, provided that the attempts are made no later than 45 days after the funds were returned or rejected. If the institution does not make an additional attempt to disburse the funds, the funds must be returned before the end of the 45day period and no later than 240 days from the date of the initial attempt to disburse the funds (34 CFR 668.164(l)). Questioned Costs: None Context: During our testing, it was noted the University failed to return the funds in a timely manner. Cause: The University?s current process in place was not sufficient to ensure proper maintenance of outstanding checks. Possible Asserted Effect: The University was not in compliance with FSA regulations. Repeat Finding: No Recommendation: We recommend the University reviews outstanding checks regularly to ensure funds are returned to the Department of Education before 240 days of the original disbursement attempt. Views of Responsible Officials: Management agrees with finding.