Finding Text
Federal Program: Federal Supplemental Educational Opportunity Grants (FSEOG) [AL #84.007], Federal Work-Study Program [AL #84.033], Federal Pell Grant Program [AL #84.063], and Federal Direct Student Loans [AL #84.268]. Criteria: Per the Uniform Guidance Title 2 Subtitle A Chapter II Part 200 Subpart D Subsection 200.303, a non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States of the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) Condition: During testing of compliance requirements such as eligibility and verification testing, there was not documentation of a level of review to ensure the requirements were met and accurate. Cause: There was a transition of personnel in the financial aid office in the current year resulting in the controls no longer being performed or documented. Effect: When internal controls are no longer being performed, this could result in compliance requirements not being met or errors being made. Questioned Costs: None Context: This is consistent across the populations tested. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the Academy review their internal controls to ensure compliance with Federal statutes and regulations and for these internal controls to be formally documented. Views of Responsible Officials: The Academy is in agreement with the finding. The Academy?s Financial Aid Counselor will complete a checklist for eligibility and verification and the Director of Financial Aid will provide documented sign off once the checklist is reviewed for completeness and accuracy.