Finding Text
2025-002 Direct Programs – Department of Education ALN # 84.268, 84.063, 84.007, 84.033 Student Financial Assistance Cluster – Cash Management & Reporting Material Weakness in Internal Controls Over Compliance Criteria: 34 CFR 685.300(b)(5). Electronic Announcements DL-22-07 and GENERAL-22-86 explain that a school must reconcile the funds it received from G5 with actual disbursement records the school submitted to COD. The school is required to account for any differences by reconciling the DOE’s records (School Account Statements) with the school’s financial and business records. Condition: During our review of the reconciliation process, we noted that only the month of January was reconciled as required by the DOE. Cause: The College’s existing control procedures to ensure reconciliation was occurring monthly were not functioning. Effect: The College did not reconcile the funds received with actual disbursement records the College submitted to COD. As a result, any difference between DOE’s records and the College’s financial and business records could go undetected and uncorrected. Questioned Costs: None reported Sampling: No sampling was done as the reconciliation process for the year was not performed for any month other than January 2025. Repeat Finding from Prior Years: No Recommendation: The College should implement a control process that requires monthly reconciliation of the funds received with actual disbursement records the College submitted to COD. Views of Responsible Officials: The Director of Financial Aid agrees with the finding.