Finding Text
Assistance Listing Number, Federal Agency, and Program Name - 84.268; U.S. Department of Education; Student Financial Assistance Cluster; Federal Direct Student Loan Program
Federal Award Identification Number and Year - June 1, 2021 to May 31, 2022
Finding Type - Material weakness and material noncompliance with laws and regulations
Repeat Finding - Yes
2021-011
Criteria - In accordance with 34 CFR 685.300(b)(9) and electronic announcement November 13, 2013, Direct Loan Quality Assurance Requirement Reminder, institutions of higher education are requested to document a Direct Loan quality assurance program.
Condition - The School does not have a documented Direct Loan quality assurance program.
Questioned Costs - None
Context - During our testing, management stated that the School does not have a documented Direct Loan quality assurance program.
Cause and Effect - The School does not have a process in place to ensure that its Direct Loan quality assurance efforts are documented in accordance with federal regulations.
The lack of a documented Direct Loan quality assurance program for the School results in noncompliance with federal regulations.
Recommendation - We recommend the School establish the required Direct Loan quality assurance program and that contemporaneous evidence of consistent adherence to such a program be maintained.
Views of Responsible Officials and Planned Corrective Actions - There is no disagreement with the audit finding. The Iliff School of Theology has contracted with a professional, third party processing company to administer its student assistance programs. The School will coordinate with this third party processor to ensure that there is a documented quality assurance program that is regularly exercised for compliance purposes. All documentation will be maintained.