Finding Text
2023 – 001
Federal Agency: U.S. Department of Education
Federal Program Title: Student Financial Assistance Cluster
Assistance Listing Number: 84.007 – Federal Supplemental Education Opportunity Grants, 84.038 – Federal Perkins Loans, 84.063 – Federal Pell Grant Program, 84.268 – Federal Direct Student Loans, 84.379 – Teacher Education Assistance for College and Higher Education Grants, 93.364 – Nursing Student Loan Program
Pass-Through Agency: N/A
Pass-Through Number(s): N/A
Award Period: June 1, 2022 – May 31, 2023
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: Nineteen checks related to student refunds of Title IV federal financial aid were outstanding more than 240 days as of May 31, 2023.
Questioned costs: None.
Context: A total of 173 checks outstanding over 240 days at year-end were individually reviewed to determine if they were related to a student refund of Title IV funds.
Cause: Management was not aware of the requirement to return checks that are not cashed within 240 days.
Effect: The University is not in compliance with Department of Education requirements that all student refund checks that are outstanding for more than 240 days be returned to the Department
Repeat finding: No
Recommendation: We recommend that the University review its procedures related to outstanding student refund checks to ensure they are being returned to the Department of Education after 240 days.
Views of responsible officials: There is no disagreement with the audit finding.