Finding Text
Finding 2023-004: Untimely and Unpaid Credit Balances While Participating under the Zone Alternative and the Heightened Cash Monitoring Payment Method. Compliance Requirement: Eligibility (E.) Criteria: Under the heightened cash monitoring payment method, an institution must credit a student’s ledger account for the amount of Title IV, HEA program funds that the student or parent is eligible to receive, and pay the amount of any credit balance due before the institution submits a request for funds (34 CFR 668.162(d)). Condition: We tested sixty-four files and found unpaid and untimely credit balances for ten students. We consider this finding to be a material weakness and is a repeat finding shown in Section IV of this report as prior year Finding 2022-009. Cause: The condition was caused by a breakdown in controls over paying credit balances prior to requesting funds. Effect: As a result, the Institution paid $7,904 of late credit balances and still owes $2,740 of unpaid credit balances. Question Costs: $10,644 Statistical sampling was not used when making sample selections. Recommendation: We recommend the Institution increase controls over the payment of credit balances. We are qualifying our opinion over this attribute as the conditions of Heightened Cash Payment Monitoring 1 have not been adhered to for the audit period. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.