Finding Text
Credit Balances Held Beyond Payment Period DEPARTMENT OF EDUCATION
ALN #: 84.268, 84.063
Federal Award Identification #: 2022-2023 Financial Aid Year
Condition: The College is required to pay out credit balances created by federal aid within 14 days of the balance being created. Additionally, they are not allowed to hold credit balances beyond the end of the payment period.
Criteria: 34 CFR 668.164(h)
Questioned Costs: $0
Context: Out of 40 students tested for holding credit balances, there were 3 students who had a credit balance created by Federal Direct Loans and Federal Pell that were not paid out to the student before the end of the payment period. These were corrected during the course of the audit.
Cause: There was not a process in place to identify credit balances created by federal aid within the 14 day time frame and again at the end of the payment period.
Effect: Noncompliance with the Department of Education's cash management regulations.
Identification as repeat finding, if applicable: Not applicable
Recommendation: We recommend the College design and implement a process to identify credit balances created by federal aid and disburse them to students within 14 days of the balance being created and to pay out all credit balances at the end of the payment period.
Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.