Finding Text
Criteria or specific requirement: Uniform Grant Guidance (2 CFR 200.303) requires nonfederal entities receiving federal awards establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements over direct loan reconciliations as well as the reconciliation of Pell, Federal Supplemental Educational Opportunity Grant (FSEOG), and Federal Work Study (FWS) Condition: The College did not have an internal control in place to ensure the direct loan monthly reconciliations were completed timely and accurately. In addition, the College also did not have a control in place to ensure the Pell, FSEOG, and FWS funds were reconciled timely and accurately. Questioned Costs: None. Context: During our testing, we noted the College did not have a formal review process in place to ensure the direct loan reconciliations were completed timely and accurately in accordance with federal regulations. The College also did not have formal review processes for reconciliations over other Title IV funding like Pell, FSEOG and FWS. Cause: The College did not have an internal control in place to review and approve direct loan, Pell, FSEOG, and FWS reconciliations. Effect: The College is not in compliance with Department of Education requirements to establish internal controls over the direct loan, Pell, FSEOG, and FWS reconciliations. Repeat Finding: No. Recommendation: We recommend the College implement procedures to ensure direct loan, Pell, FSEOG, and FWS reconciliations are reviewed and such review properly documented. Views of responsible officials: There is no disagreement with the finding.