Finding Text
Federal Agency: U.S. Department of Education
Federal Program Name: Student Financial Assistance Cluster
Assistance Listing Number: 84.007, 84.033, 84.063, and 84.268
Pass-Through Agency: N/A
Pass-Through Number(s): N/A
Award Period: July 1, 2023 June 30, 2024
Type of Finding:
Significant Deficiency in Internal Control over Compliance, Other Matters
Criteria or specific requirement: Per Uniform Guidance 2 CFR 200.303, nonfederal entities receiving
federal awards are required to establish and maintain internal controls designed to reasonably ensure
compliance with federal laws, regulations, and program compliance requirements.
Condition: During our testing, we noted the College did not have adequate internal controls designed
for properly documented reviews of return of title IV calculations or direct loan reconciliations.
Questioned costs: None
Context: During our testing, the College did not have formal documentation that return of title IV calculations or direct loan reconciliations were reviewed and approved.
Cause: The College did not have formal procedures in place to review return of title IV calculations or direct loan reconciliations.
Effect: If not properly reviewed, the College could return incorrect amounts based off of their calculations, which could affect student repayment amounts based off of amount earned. Also, the direct loan reconciliations could have errors that would not be detected timely.
Repeat Finding: No
Recommendation: We recommend the College implement policies and procedures surrounding reviews of return of title IV calculations and direct loan reconciliations.
Views of responsible officials: There is no disagreement with the audit finding. The return of title IV
calculations and the direct loan reconciliations are generated by Colleague and verified by a Financial
Aid Staff member utilizing a different method for the calculation. Effective immediately the Financial
Director will review the calculation and initial approval.