Finding Text
Finding 2024-003: AL #84.063 Federal Pell Grant Program; AL #84.268 Federal Direct Student Loans
Criteria:
On a monthly basis, the University is required to reconcile institutional records with the “Student Account Statement” provided by DOE. The University is also required to complete a year-end closeout or final reconciliation of its FDL accounts (34 CFR § 685.300(b)(5)). Although there is no regulatory requirement to reconcile the University’s Pell Grant operations monthly, it is almost impossible to satisfy other program requirements without monthly reconciliation of the University’s Pell Grant participation.
Condition:
The University did not perform monthly and annual FDL and Pell Grant reconciliations.
Cause:
Turnover in the SFA Office resulted in the reallocation of job duties and the University’s process to reconcile the FDL and Pell Grant to go unfollowed.
Effect:
Failure to complete these mandatory reconciliations within the prescribed timelines could result in the inability to finalize the award year on a timely basis. In addition, unreconciled activity could negatively impact a student’s aggregate FDL and Pell Grant limits, resulting in the student becoming ineligible for further aid.
Questioned Costs:
None
Auditors’ Recommendation:
The University should provide necessary ongoing cross training as it assesses the staffing needs of the SFA Office to ensure procedures for reconciliation of federal funds are performed timely.
Views of Responsible Officials:
The University experienced staffing turnover in the financial aid department during the 2023- 2024 aid year, resulting in certain established processes to go unfollowed. In June 2024, the University hired a full-time outsourced staffing solution, which has added headcount and stabilized the department staffing. As of February 2025, the University has established clear roles and responsibilities so established processes are not missed going forward.