Finding 1115920 (2024-009)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-03-28
Audit: 350009
Organization: Urshan College (MO)

AI Summary

  • Core Issue: The University failed to review Direct Loan Reconciliation prepared by a third-party servicer, which is a required compliance step.
  • Impacted Requirements: This finding violates 34 CFR 685.300(b)(5) and 2 CFR 200.303 regarding mandatory reconciliation and internal controls.
  • Recommended Follow-Up: Implement controls to establish a proper review process for compliance with reporting requirements.

Finding Text

2024-009 8565.02 Department Of Education Student Financial Aid 84.063, 84.268 "P063P218567-2024 P268K228567-2024" N/A N/A 7/1/23 - 6/30/24 Significant Deficiency Did not result in material questioned costs therefore will document as a SD. Finding is neither systemic nor will it lead to 5% questioned cost. N/A "The Code of Federal Regulations (34 CFR 685.300(b)(5)) and the Federal Student Aid Handbook, Volume 4, Chapter 6, states loan reconciliation is a mandatory monthly process requiring the comparison of both internal and external records to be completed by an institution participating in the Direct Loan Program. Reconciliation is conducted to identify and resolve differences between net draws and disbursements reported to the Common Origination and Disbursement for a specific award year. An institution must document the reasons and resolve the discrepancies identified during the reconciliation process and that a review had been performed. Per 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." The University did not have documentation that Direct Loan Reconciliation prepared by third-party servicer was reviewed. N/A During our testing we examined four months of direct loan reconciliations (August, December, March, & May). For all four, the University's third party servicer (Campus Ivy) performed preparation and review of the reconciliation; however, Urshan did not review the work of Campus Ivy or a SOC1 report. The college did not have the appropriate resources and staffing in place to verify they were in compliance with all requirements. Without proper controls the University risks being out of compliance with federal laws and regulations, as well as program compliance requirements. No We recommend the College design controls to ensure an adequate review process is in place to ensure compliance with reporting requirements. Management agrees with this finding. See 0100.25

Categories

Matching / Level of Effort / Earmarking Student Financial Aid Reporting Significant Deficiency

Other Findings in this Audit

  • 539468 2024-004
    Significant Deficiency Repeat
  • 539469 2024-004
    Significant Deficiency Repeat
  • 539470 2024-005
    Material Weakness
  • 539471 2024-005
    Material Weakness
  • 539472 2024-006
    Significant Deficiency Repeat
  • 539473 2024-006
    Significant Deficiency Repeat
  • 539474 2024-007
    Significant Deficiency Repeat
  • 539475 2024-007
    Significant Deficiency Repeat
  • 539476 2024-008
    Significant Deficiency
  • 539477 2024-008
    Significant Deficiency
  • 539478 2024-009
    Significant Deficiency
  • 539479 2024-009
    Significant Deficiency
  • 539480 2024-010
    Significant Deficiency
  • 539481 2024-010
    Significant Deficiency
  • 1115910 2024-004
    Significant Deficiency Repeat
  • 1115911 2024-004
    Significant Deficiency Repeat
  • 1115912 2024-005
    Material Weakness
  • 1115913 2024-005
    Material Weakness
  • 1115914 2024-006
    Significant Deficiency Repeat
  • 1115915 2024-006
    Significant Deficiency Repeat
  • 1115916 2024-007
    Significant Deficiency Repeat
  • 1115917 2024-007
    Significant Deficiency Repeat
  • 1115918 2024-008
    Significant Deficiency
  • 1115919 2024-008
    Significant Deficiency
  • 1115921 2024-009
    Significant Deficiency
  • 1115922 2024-010
    Significant Deficiency
  • 1115923 2024-010
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $1.87M
84.063 Federal Pell Grant Program $990,139