Finding 11945 (2023-003)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-02-06
Audit: 15908
Organization: Schreiner University (TX)

AI Summary

  • Core Issue: The University failed to provide evidence of monthly reconciliations between SAS data files and financial records.
  • Impacted Requirements: This affects compliance with federal reporting requirements for loan disbursements and cash management.
  • Recommended Follow-Up: Implement policies to ensure proper documentation and retention of SAS reconciliations moving forward.

Finding Text

Criteria: Institutions must report all loan disbursements and submit required records to the Common Origination and Disbursement System (COD) within 15 days of disbursement (OMB No. 1845-0021). Direct Loan School Account Statement (SAS) reconciliations are a mandatory monthly process, as required under 34 CFR 685.300(b)(5). A school should reconcile all cash (drawdowns and refunds of cash) and disbursement records (actual disbursements and adjustments) with information in the Common Origination and Disbursement (COD) System on an ongoing basis. Condition/Context: For the period under audit, supporting evidence that SAS data files were reconciled to the University’s financial records could not be provided. Cause: The Universitys SAS data files and their reconciliation to internal financial records were not properly documented and retained. Effect: Lack of reconciliation procedures could result in improper data and within the COD system and noncompliance in cash management of the direct loan program and/or noncompliance with disbursement reporting requirements. Questioned Costs: Not applicable Recommendation: The University should put into place policies and procedures to ensure compliance with federal grant reporting requirements, including documenting and retaining monthly SAS reconciliations. Management’s Response: Management understands the finding and will seek to add documentation control procedures to ensure evidence of reconciliations are maintained.

Corrective Action Plan

Management understands the finding and has already established new procedures for the required monthly reconciliation. The reconciliation process will be comleted each month upon receipt of the SAS. The Financial Services Office will use a PowerFAIDS consultant to update settings in the PowerFAIDS system so that all SAS reconciliation documentation will be kept as opposed to deleted after 90 days. A complete reconciliation of 2022-2023 Title IV aid will be done to ensure accuracy of all aid.

Categories

Cash Management Student Financial Aid Reporting Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 11946 2023-004
    Significant Deficiency
  • 588387 2023-003
    Significant Deficiency
  • 588388 2023-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $7.87M
84.063 Federal Pell Grant Program $2.71M
84.031C Higher Education Institutional Aid $1.47M
84.007 Federal Supplemental Educational Opportunity Grants $106,842
84.033 Federal Work-Study Program $99,505
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $33,558