Finding Text
Federal Agency: U.S. Department of Education
Federal Program Name: Student Financial Assistance Cluster
Assistance Listing Number: 84.007, 84.033, 84.063, 84.268
Award Period: July 01, 2022 - 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(l)(3) 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 of Title IV checks, we noted refunds of Title IV financial aid outstanding more than 240 days.
Questioned costs: $13,996.
Context: During our testing, we noted 10 Title IV refund checks not returned to the Department of Education within 240 days.
Cause: Due to turnover and lack of documented policies and procedures, management did not ensure Title IV refund checks were properly reviewed and returned within prescribed timeframes.
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 of Education.
Repeat finding: No.
Recommendation: We recommend the University review its policies and procedures related to Title IV outstanding checks to ensure they are being returned to the Department of Education after 240 days.
Views of responsible officials: Management agrees with the finding.