Finding Text
Federal Agency: U.S. Department of Education
Federal Program Name: Student Financial Aid Cluster
Assistance Listing Number: Various
Federal Award Identification Number and Year: N/A
Pass-Through Agency: N/A
Pass-Through Number(s): N/A
Award Period: 2022-2023
Type of Finding: Significant Deficiency in Internal Control over Compliance and 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: During our testing, we noted one check totaling $41.00 related to student refunds of Title IV federal financial aid were outstanding more than 240 days as of August 31, 2023
Questioned Costs: $41.00.
Context: There was one outstanding check for $41.00 related to student refunds of Title IV federal financial aid outstanding more than 240 days.
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.