FAC Explorer

Finding 29953 (2022-003)

Significant Deficiency Repeat Finding
Requirement
LN
Questioned Costs
-
Year
2022
Accepted
2023-03-28
Audit: 30447
Organization: Philander Smith College (AR)
Auditor: Cherry Bekaert LLP

AI Summary

  • Core Issue: The College failed to provide documentation for reconciling the School Account Statement (SAS) data with its financial records.
  • Impacted Requirements: Monthly reconciliation of SAS data files is required to ensure accurate reporting to the Department of Education.
  • Recommended Follow-Up: Strengthen internal controls and maintain proper documentation for all reconciliations to prevent future discrepancies.

Finding Text

Finding 2022-003 ? Federal Direct Student Loan ? Federal Student Financial Aid Cluster, CFDA# 84.268 Compliance Requirement: Reporting, Special Tests ? Borrower Data Transmission and Reconciliation Condition: Documentation to support the College?s reconciliation between the School Account Statement (?SAS?) data file and the College?s financial records were performed was not available. Criteria: Each month, the COD provides institutions with a SAS data file which consists of a Cash Summary, Cash Detail, and (optional at the request of the school) Loan Detail records. The school is required to reconcile these files to the Institution?s financial records. Cause: The College?s internal controls and processes in place surrounding borrower data transmission and reconciliations of the SAS data file need to be strengthened. Context: Two monthly reconciliations were selected for testing and documentation to support that the reconciliation was performed was not available. Effect: Incorrect disbursement dates could be reported to COD. Repeat Finding: This finding was a repeat of Finding 2021-004 in the immediate prior audit. Recommendation: The College should maintain documentation evidencing the reconciliation between the SAS data file and the College?s financial records. Management Response: The College concurs with this finding. Corrective Action Plan: See attached management?s corrective action plan.

Corrective Action Plan

Finding 2022-003 ? Federal Direct Student Loan ? Federal Student Financial Aid Cluster, CFDA# 84.268 Philander Smith College concurs with this finding, and the following action has been taken. The College has created an official reconciliation form as attestation of a complete reconciliation between the Business Office and the Financial Aid Office. Completing the document will be coordinated by the Senior Accountant, who will work with the Director of Financial aid or their designee. The form will be due in the Controller's office by the end of the current month for the previous month's transactions to verify timely completion and sign-off. Contact Person: LaTonya Hayes, Interim Vice President for Fiscal Affairs Telephone: (501) 370-5341 E-mail: lhayes@philander.edu Contact Person: Kevin Barnes, Financial Aid Director Telephone: (501) 370-5349 E-mail: kbarnes@philander.edu

Categories

Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties Special Tests & Provisions

Other Findings in this Audit

  • 29951 2022-002
    Significant Deficiency Repeat
  • 29952 2022-002
    Significant Deficiency Repeat
  • 606393 2022-002
    Significant Deficiency Repeat
  • 606394 2022-002
    Significant Deficiency Repeat
  • 606395 2022-003
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $5.54M
84.268 Federal Direct Student Loans $3.95M
84.031 Higher Education_institutional Aid $3.34M
84.063 Federal Pell Grant Program $2.30M
93.558 Temporary Assistance for Needy Families $204,497
84.007 Federal Supplemental Educational Opportunity Grants $140,469
84.033 Federal Work-Study Program $45,462
47.076 Education and Human Resources $38,827
47.083 Integrative Activities $34,270
93.680 Medical Student Education $24,914