Finding 1079801 (2024-001)

FAILURE TO PERFORM RECONCILIATIONS Assistance Listing 84.268 Federal Direct Student Loans CRITERIA Schools participating in the Direct Loan program are required to perform monthly Direct Loan reconciliations. Schools must reconcile the funds it received from G5 with actual disbursement records the school submitted to the COD. Each month, COD sends the school a School Account Statement (SAS). The school is required to account for any differences by reconciling the SAS with the school’s financial and business records. CONDITION There were no records of reconciliations being performed for the months of April, May and June 2024. CAUSE Due to a change in personnel, there were no procedures in place to ensure reconciliations were being performed. EFFECT The required reconciliations were not performed in accordance with the cash management compliance requirements. RECOMMENDATION Management should establish procedures to ensure monthly reconciliations are being performed timely. QUESTIONED COSTS N/A VIEWS OF RESPONSIBLE OFFICIALS Management concurs with the auditor’s findings and recommendations. RESPONSE Actions Taken or Planned: Management is making several organizational changes to help track and monitor compliance with direct loans.