Finding Text
2025-008: Direct Loan Reconciliations Federal Agency: U.S. Department of Education Federal Program Title: Student Financial Assistance Cluster Federal Assistance Listing Number: 84.268 Federal Award Identification Number: P268K251946 Award Period: 7/1/2024 – 6/30/2025 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 685.300(b)(5) requires an institution to reconcile their records with the Direct Loan funds received from the Secretary and the Direct Loan disbursement records submitted to and accepted by the Secretary monthly. Condition: Direct loan reconciliations between the COD, G5, and student accounts were not being performed monthly. Questioned Costs: N/A Context: While testing direct loan reconciliations, it was noted that the University did not perform monthly reconciliations for the three months selected for testing. Cause: The University’s process to reconcile direct loans on a monthly basis was not followed during the year. Effect: The University is not complying with internal policy and federal requirements to ensure funds are properly reconciled. Repeat Finding: Yes, 2024-013 Recommendation: The University should ensure all necessary employees receive proper training, support, and time to follow the University’s policies and federal requirements related to monthly reconciliations. There should be a process to maintain all reconciliations as support of performance monthly. Views of Responsible Officials: There is no disagreement with the audit finding and the University is in the process of implementing corrective procedures.