Finding Text
Federal Agency – Department of Education, Student Financial Assistance Cluster, Federal Pell Grant Program, Assistance Listing Number 84.063; Federal Direct Loan Program, Assistance Listing Number 84.268.
Program Year – June 1, 2022 – May 31, 2023
Criteria or Specific Requirement – Special Tests and Provisions – Borrower Data Transmission – Per the Uniform Guidance 2 CFR 200.303, non-federal entities receiving federal awards are required to establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements.
Condition – During our testing, we noted no documentation of review or completion for the monthly reconciliations for Direct Loans, Pell and SEOG.
Questioned Costs – None
Context – During our testing, it was noted that necessary review and approval to maintain internal controls were not being done.
Cause – Per the Uniform Guidance 2 CFR 200.303, non-federal entities receiving federal awards are required to establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations and program compliance requirements.
Effect – It is possible for errors to occur and not be caught in a timely manner.
Identification as a Repeat Finding – Yes, see 2022-004.
Recommendation –The University has put into place the required reconciliation process. We recommend the University continue this practice.
Views of Responsible Officials and Planned Corrective Action – There is no disagreement with the audit finding. Corrections for this finding started in January 2023. Initial months selected were prior to that date. Additional months were provided, tested and complied. NCU will continue to do our monthly reconciliations in the same manner.