Finding Text
2022-003 ? Direct Loan Reconciliations Federal agency: U.S. Department of Education Federal program title: Student Financial Assistance Cluster Federal assistance listing number: 84.268 Award period: 7/1/2021 ? 6/30/2022 Type of finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Criteria or specific requirement: Per U.S. Department of Education (ED) regulations, an institution must reconcile the institutional records with the Direct Loan funds received from ED as well as to the Direct Loan disbursement records submitted to and accepted by ED (34 CFR 685.300(b)(5)). Condition: During our testing it was noted that a direct loan reconciliation was not completed on a timely basis. Questioned costs: None. Context: During our testing, we noted 1 out of 3 monthly reconciliations selected was not completed on a timely basis. Cause: The University experienced turnover and the reconciliation was not completed on a timely basis. Effect: The University did not comply with its internal policy and federal requirements to ensure funds are properly reconciled monthly. Repeat Finding: No. Auditors? Recommendation: The University should ensure employees receive proper training, support, and time to follow the University?s policies and federal requirements related to monthly reconciliations. Views of responsible officials: Management agrees with the finding and has developed a plan to correct the finding.