Finding Text
2023 – 005
Federal Agency: Department of Education
Federal Program Name: Student Financial Assistance Cluster
Assistance Listing Numbers: 84.063
Federal Award Identification Number and Year: E-P268K90313, grants were awarded within the 2021-22 and 2022-23 award years.
Award Period: September 1, 2022, through August 31, 2023
Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters
Criteria or Specific Requirement:
Under 34 DFR 668.164(1), an institution must have a process that ensures SFA funds never escheat to a State or revert to the institution or any other third party.
If disbursement of a student refund balance by check is not cashed, the school must return the funds no later than 240 days after the original issued check.
Condition:
The College did not void/return outstanding student refund balance checks within the 240-day time frame.
Questioned Costs:
$5,297 – outstanding checks untimely voided or not voided
Context:
During our testing of outstanding student refund checks we noted 6 of the 40 checks outstanding over 240 days were related to Title IV funding. Of these 6 checks, 5 were voided untimely and 1 was not voided as of August 31, 2023.
Effect:
As the result of not voiding issued student refund checks outstanding for over 240 days, the college is not in compliance with the corresponding requirement of the Department of Education.
Repeat Finding:
Not a repeat finding.
Recommendation:
The College should implement a control to establish an ongoing reconciliation of the outstanding refund check listing.
Views of Responsible Officials:
Management agrees with the finding and has developed a plan to correct the finding.