Finding Text
2022-002 FEDERAL DIRECT LOAN RECONCILIATIONS Federal Assistance Listing Number: 84.268 Criteria According to 34 CFR 685.300(b)(5), the College must, on a monthly basis, reconcile institutional records with Direct Loan funds received from the Secretary and Direct Loan disbursement records submitted to and accepted by the Secretary. Observation/Condition/Context The College did not perform the monthly reconciliations over direct loans for all months out of the fiscal year. We requested a selection of reconciliations out of the 12 required and were informed that only 8 reconciliations were performed. Questioned Cost There were no questioned costs related to this finding. Cause/Effect The reconciliations were not performed due to a transition of responsible parties over the reconciliations. Direct loan discrepancies may not have been identified and resolved in a timely manner due to the lack of monthly reconciliations. Recommendation We recommend that the College perform direct loan reconciliations monthly to ensure that discrepancies are properly addressed in a timely manner.