Finding Text
Monthly Reconciliations of Pell Grant and Federal Direct Loans
DEPARTMENT OF EDUCATIONALN #: 84.268 Federal Direct Loans and 84.063 Federal Pell Grants
Federal Award Identification #: 2022-2023 Financial Aid Year
Condition: Under Federal Financial Responsibility regulations and Federal Direct Loan regulations, the College is required to reconcile the Pell Grants and Direct Loans disbursed between Common Origination and Disbursement (COD), the student information system, and student accounts on a monthly basis. This reconciliation should be on a student-by-student basis to identify any discrepancies between systems. Additionally, any discrepancies that arise during the reconciliation process should be resolved at that time.
Criteria: 34 CFR 685.300(b)(5) and 34 CFR 668 Subpart L
Questioned Costs: $0
Context: During the fiscal year-end, the College was not completing monthly reconciliations on a timely basis between COD, the student information system, and student accounts.
Cause: Due to turnover in key management positions, the College was not able to always reconcile Federal Direct Loans and Pell Grants in a timely manner.
Effect: There were students in the sample tested that did not have the correct disbursement dates reported to COD. Additionally, there could be discrepancies between systems that could impact student eligibility and institutional eligibility for Federal Student Aid that would.
Identification as repeat finding, if applicable: Not applicable.
Recommendation: We recommend the College implement monthly reconciliations and resolve any discrepancies noted during this process to maintain compliance with Federal Student Financial Aid regulations.
Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.