Finding Text
Student Financial Assistance Cluster
Federal Supplemental Education Opportunity Grants, ALN 84.007; Federal Work-Student Program, ALN 84.033; Federal Pell Grant Program, ALN 84.063; Federal Direct Student Loans, ALN 84.268
U. S. Department of Education, Program Year 2023-2024
Type of Finding – Significant Deficiency in Internal Control Over Compliance
Criteria or Specific Requirement – Special Tests and Provisions – Using a Servicer or Financial Institution to Deliver Title IV Credit Balances to a Card or Other Access Device [34 CFR 688.164(e) and (f)].
Condition – The District did not provide a URL for the contract to the Department of Education for publication in the Cash Management Contracts Database, and the District did not disclose conspicuously on its website the contract establishing the Tier One arrangement.
Cause – The District’s internal controls related to compliance with Title IV requirements on use of a servicer did not ensure the required information was reported to the Department of Education and did not disclose contract on its website.
Effect or Potential Effect – The District was not in compliance with the requirements noted above, and information required to be published or disclosed was not.
Questioned Costs – None.
Context – The District did not provide the URL or the contract for publication in the cash management contracts database, nor the link to the disclosure of contract on its website.
Identification as a Repeat Finding, if Applicable – N/A
Recommendation – The District should update internal controls to ensure requirements noted above for using a servicer are followed and the servicers are properly monitored. Additionally, the District should routinely review the related compliance requirements to ensure future compliance.
Views of Responsible Officials and Planned Corrective Actions – There is no disagreement with the audit finding. See corrective action plan.