Finding Text
2023-007: Special Tests and Provisions: Outstanding Checks over 240 Days
Federal agency: U.S. Department of Education
Federal program title: Student Financial Assistance
ALN Number: 84.007, 84.033, 84.063, 84.268, 84.379
Pass-Through Agency: N/A
Pass-Through Number(s): N/A
Award Period: July 1, 2022 through June 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(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.
Per 2 CFR 200.303, nonfederal entities receiving federal awards are required to establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements.
Condition: The University had 3 instances of Title IV refund checks to students that were outstanding longer than 240 days as of June 30, 2023
Questioned costs: None.
Context: During the testing of the outstanding Title IV student check listing CLA observed three instances of stale checks that were aged greater than 240 days.
Cause: Due to staff turnover, stale checks were not being monitored.
Effect: Funds are not returned to the Department of Education in a timely manner
Repeat finding: No.
Recommendation: We recommend that the University review processes to track Title IV refund checks
Views of responsible officials: There is no disagreement with the audit finding.