Finding Text
Condition Found:
For 19 out of 40 students selected for testwork, the Title IV funds credited to the student resulted in a credit
balance owed to the student. The institution did not refund the credit balances back to the student for more
than a period of 14 days and did not obtain proper authorizations from the student to retain the balance.
The delay in repayment ranged from 15 to 102 days.
Cause and Possible Asserted Effect:
It was identified that management had turnover in the financial aid department, which caused delays in
recording and processing refunds among the accounting and accounts payable departments. This resulted
in a failure by the institution to make payment to the students within the 14-day timeframe required by the
Department of Education and did not obtain voluntary authorization from the student to retain the credit
balances. Therefore, this evidenced the lack of an appropriately designed control by the institution to
ensure credit balances are refunded to students within the timeframe requirements.