Finding Text
Federal Agency: U.S. Department of Education Federal Program Title: Student Financial Aid Assistance Listing Number: Student Financial Aid Cluster Award Period: July 1, 2024 to June 30, 2025 Type of Finding: • Significant Deficiency in Internal Control Over Compliance • Other Matters Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 668.16 and volume 4 states that, at a minimum, the College should reconcile its FSA financial records monthly and should be conducted on a more frequent basis during periods of high transaction volume. Condition: During our testing, we noted there was no formal process in place for reconciling and reviewing the Nursing Student Loan (NSL) and Nurse Faculty Loan Program (NFLP) balances on a regular basis. Questioned Costs: None Context: The College did not have proper internal controls in place during the 2024-25 academic year to ensure compliance with federal statutes, regulations, and the terms and conditions of the federal award. Cause: Due to an ongoing reconciling difference with the loan servicer, the College was not able to perform timely reconciliations. Effect or Potential Effect of Finding: Timely reconciliations and adequate review of financial transactions can protect the College’s assets and ensure the accounting records are accurate. Repeat Finding: Yes, see finding 2024-007. Recommendation: We recommend the College provide all necessary employees with training, support, and sufficient time to follow College policies and federal requirements related to monthly reconciliations. Views of Responsible Officials: There is no disagreement with the audit finding.