Finding Text
Finding 2023-002: Special Tests and Provisions (Material Weakness)
U.S. Department of Education – Student Financial Assistance Cluster
Statement of Condition: The College has approximately 140 student financial assistance checks that were outstanding at year end that were over 240 days old and they have not been returned to the federal government. The College has also escheated uncashed student financial assistance checks to the state of Pennsylvania.
Criteria: As outlined under 34 CFR 668.164 (1), an institution must have a process that ensures student financial assistance funds outstanding are returned to the federal government within 240 days. They may not be escheated to a state or revert to the institution or any other third party.
Cause: The College did not have a process in place to monitor outstanding student financial assistance checks or to prevent these funds from escheating to the Commonwealth of Pennsylvania.
Effect: The College is not following required Federal Student Assistance regulations in maintaining an appropriate administrative capability to administer funds.
Questioned Costs: The amount of questioned costs could not be determined.
Repeat Finding: This is not considered a repeat finding.
Recommendation: We recommend that the College immediately create a process and procedures to ensure monitoring of outstanding student financial assistance checks and to ensure that those checks are treated in accordance with Federal Student Assistance regulations.
View of responsible officials and planned corrective actions: Management agrees with the finding, see corrective action plan.