Finding Text
2023 – 002 Internal Controls
Federal Agency: Department of Education
Federal Program Name: Student Financial Assistance Cluster
Assistance Listing Number: Various
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria or specific requirement: Per federal regulations 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. In addition, per the student financial aid handbook, a school must ensure that its administrative procedures for the FSA programs include an adequate system of internal controls or checks and balances.
Condition: During our compliance testing for eligibility, we noted there is not an individual review of students' award packages; however, we noted there were some mitigating controls within the student information system as well as monthly reconciliations that may catch various issues. In addition, we noted there is no review for return of title IV calculations. There is one individual performing these calculations. Lastly, we noted there is only one individual who is processing and reviewing professional judgment cases.
Questioned costs: None
Context: During our audit procedures, it was noted there are not sufficient checks and balances in place over a few compliance requirements.
Cause: The University has not historically had review procedures in place.
Effect: While we found no compliance errors in our samples, there is a risk of human error causing future compliance errors.
Repeat finding: No
Recommendation: We recommend the University review their internal control procedures over awarding, return of title IV calculations, and professional judgment and implement a formally documented review process.
Views of responsible officials: There is no disagreement with the audit finding.