Finding Text
2023 - 001 – Student Credit Balances
Federal Agency: U.S. Department of Education
Federal Program Title: Student Financial Assistance Cluster
Federal Assistance Listing Number: 84.007, 84.033, 84.038, 84.063, 84.268
Award Period: 7/1/2022 – 6/30/2023
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(e) states, that
whenever an institution disburses Title IV funds by crediting a student's account and the total amount of
all Title IV funds credited exceeds the amount of tuition and fees, room and board, and other authorized
charges the institution assessed the student, the institution must pay the resulting credit balance
directly to the student or parent as soon as possible but—
(1) 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
(2) No later than 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: A student credit balance was not refunded within the required 14-day time frame.
Questioned Costs: None.
Context: During our testing, 1 student out of a sample of 40 had a credit balance as a result of receiving Title IV aid that was not returned within the required 14-day timeframe.
Cause: Process and controls in place for ensuring timely return of credit balances were not functioning properly.
Effect: The University did not refund a student within 14 days for a credit balance that arose from
federal funds as required by Department of Education regulations.
Repeat Finding: No.
Auditors’ Recommendation: We recommend the University evaluate its procedures and review policies in overseeing student credit balances to ensure that any credit balances as a result of Title IV aid are returned within the required timeframe.
Views of Responsible Officials: Management agrees with the finding.