Finding Text
2022-004: Special Tests & Provision – Outstanding Checks over 240 Days
Federal Agency:
Department of Education
Federal Program Title:
Student Financial Aid Cluster
Assistance Listing Number:
84.007, 84.033, 84.063, 84.268
Award Number and Year: P007A215801 (March 25, 2021 - August 31, 2027),
P033A215801(July 1, 2021 - August 31, 2027),
P063P213807(March 23, 2021 - August 31, 2027),
P268K223807(January 1, 2021 - July 31, 2043)
Award Period: July 1, 2021 – June 30, 2022
Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters
Criteria or Specific Requirement: Internal Control – Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Compliance- 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.
Condition: Student checks related to student refunds of Title IV federal financial aid was outstanding more than 240 days as of June 30, 2022.
Questioned Costs: $45,109.
Context: During our audit procedures, it was noted that the University had 84 Title IV outstanding checks at June 30, 2022, that aged over 240 days. The outstanding checks have not been canceled or the funds returned to the Secretary.
Cause: Employee turnover in the finance area caused a lapse in the development and implementation of policies and procedures related to Title IV outstanding checks.
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.
Repeat Finding: No
Recommendation: We recommend that the University review its procedures related to outstanding student refund checks to ensure they are being returned to the Department of Education after 240 days.
Views of Responsible Officials: There is no disagreement with the audit finding.