Finding Text
2024-007 - Student Financial Aid Cluster - (a) Federal Pell Grant (b) Federal Supplemental Educational Opportunity Grant (c) Federal Work Study Grant (d) Federal Perkins Loan Program (e) Federal Direct Student Loans (f) Teacher education Assistance for College and Higher Education ALN No. (a) 84.063 (b) 84.007 (c) 84.033 (d) 84.038 (e) 84.268 (f) 84.379 - Year Ended June 30, 2024.
Criteria: 34 CFR 685.300 (b)(5) states “On a monthly basis, reconcile institutional records with Direct Loan funds received from the Secretary and Direct Loan disbursement records submitted to and accepted by the Secretary;”
Condition: The College did not complete monthly reconciliations for Direct Loan funds. We consider this condition to be a significant deficiency in internal control over compliance relating to the Special Tests and Provisions compliance requirement.
Questioned Costs: N/A
Cause and Effect: The College experienced turnover in which it is believed that reconciliations of Direct Loan funds were not completed. Further, the College’s Financial Aid system had overwritten all reconciliations that had been completed for the year ended June 30, 2024. Therefore no documentation was able to be provided to support that reconciliations of Direct Loan funds were completed.
Recommendation: We recommend the College implement procedures in order to complete and retain monthly reconciliations for Direct Loan funds.
Views of Responsible Officials: Management agrees with this Single Audit Finding and response
is included in the Corrective Action Plan.