Finding Text
Finding No. 2023–001 – Special Tests and Provisions – Disbursement to or on behalf students Title
IV, HEA credit balances
Federal Program
ALN 84.063, Federal Pell Grant Program (PELL), Student Financial Assistance Programs
Name of Federal Agency
U.S. Department of Education (USDE)
Category
Internal Control/Compliance
Compliance Requirement
Special Tests and Provisions
Criteria
According to the 34 CFR 668.164(h)(2)(i) A title IV, a HEA credit balance must be paid directly to
the student or parent as soon as possible, but no later than fourteen (14) days after the balance
occurred, if the credit balance occurred after the first day of class of a payment period.
Condition
During our examination, we noted one (1) instance, which based on the regulation mentioned above,
the credit balance was not paid to the student in the required time frame.Cause
The student credit balance was not paid in the required time frame as a result of a processing
delay.
Effect
As a result of this condition, the USDE may issue warnings and/or impose penalties to the
University.
Context
Of the 1,426 participants of Student Financial Aid Program, we examined forty (40) participants of
PELL and in one (1) case credit balance refund was performed late.
The composition of the audit samples for the Pell grant and Direct Loans programs and the
population from which eligibility samples were as follows:Identification of a repeat finding
This is not a repeat finding from the immediate previous audit.
Questioned cost
None
Recommendation
The management of UCB should reinforce its internal control and procedures to ensure the return
of credit balances to the students in the required time frame.
Views of Responsible Officials of the Auditee and Planned Corrective Actions
Management of the University agrees with this finding. Please refer to the corrective action plan
on page 54.