Finding Text
Federal Program: Student Financial Assistance Cluster, Federal Direct Loan Program Federal Agency: U.S. Department of Education Pass-Through Entity: Not applicable Assistance Listing Number: 84.268 Federal Award Year: June 30, 2022 Criteria: Title IV regulations stipulate institutions must reconcile their Federal Direct Loan School Account Statements (SAS) to the institution's records each month. Condition: The Organization did not reconcile its SAS data file to its financial records for all 12 months of the fiscal year; however, the Organization did complete the annual reconciliation at the end of the fiscal year. Cause: Lack of competency and turnover in the financial aid office contributed to the Organization not being able to perform the reconciliations in the required timeframe. Effect: The potential exists that an error could occur in the financial records and not be detected and corrected within a timely manner by employees in the normal course of performing their assigned functions. Questioned Costs: There were no questioned costs associated with this finding. Context: The key position of financial aid director was vacant for part of the testing period. This position is responsible for proper enrollment reporting. As of the time of our testing, this position has been filled. Recommendation: The Organization should implement policy and procedures to ensure that the monthly SAS reconciliations are performed on a timely basis and correct all errors to adhere to federal regulations. Views of Responsible Official(s): Management agrees with this finding and has recognized their need for a qualified individual who is knowledgeable about financial aid requirements. The Organization has hired a new Director of Financial Aid and Student Housing who started July 1, 2022, who is committed to completing the reconciliations in a timely manner. Furthermore, a different individual will check and determine that the reconciliations are completed timely.