Finding Text
Federal Agency: U.S. Department of Education Federal Program Title: Student Financial Assistance Cluster ALN Numbers: 84.268, 84.063, 84.007, 84.033 Federal Award Identification Number and Year: P268K257727, P063P247727, P007A249116, P033A249116 Award Period: July 1, 2024 - June 30, 2025 Type of Finding: Material Weakness in Internal Control Over Compliance 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. Condition: The College does not review the work or internal control reports of its third-party servicer who performs its monthly reconciliations for Title IV funds. Questioned Costs: N/A. Context: The College uses a third-party to perform its monthly reconciliations. The College did not review internal controls reports, such as SOC1 reports or perform other documented reviews of the third-party servicers work. Cause: The College did not have a control in place to review the controls and accuracy of the thirdparty servicers work. 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: Yes, 2024-004. Recommendation: We recommend the College review internal control reports and implement review controls for work performed by third-party servicers. Views of responsible officials: There is no disagreement with the finding.