Finding 385461 (2023-005)

Significant Deficiency
Requirement
C
Questioned Costs
-
Year
2023
Accepted
2024-03-27

AI Summary

  • Core Issue: The College failed to perform required monthly reconciliations for direct loans due to technology issues.
  • Impacted Requirements: This noncompliance affects the College's ability to ensure that drawn funds do not exceed disbursed amounts.
  • Recommended Follow-Up: The College should collaborate with other institutions to create a policy for managing technology-related reporting issues.

Finding Text

Finding Type. Immaterial Noncompliance / Significant Deficiency in Internal Control over Compliance (Cash Management). Program. Student Financial Assistance Cluster; U.S. Department of Education; Assistance Listing Numbers 84.007, 84.033, 84.063, 84.268; Award Numbers P007A222008, P033A222008, P063P221633, P268K231633. Criteria. Monthly reconciliations are required to be performed by the College to ensure the amount drawn down for direct loans doesn't exceed the amount disbursed. Condition. The College was unable to reconcile direct loans with the COD website during fiscal 2023. The College was unable to obtain the COD reports needed for monthly direct loan reconciliations. Cause. The College did not explore all of its options to correct its technological issues and doesn't have a policy in place to fall back on when system generated reports can't be produced. Effect. As a result of this condition, the College isn't meeting its obligation to complete reconciliations of direct loans on a monthly basis and risks overdrawing. Questioned Costs. No costs were required to be questioned as a result of this finding, inasmuch as our testing did not reveal any unallowed costs. Recommendation. We recommend that the College communicate with other schools to develop a policy for handling matters such as these when having technology issues. View of Responsible Officials. Management agrees with this finding and has prepared a Corrective Action Plan.

Corrective Action Plan

Auditor Description of Condition and Effect. The College was unable to reconcile direct loans with the COD website during fiscal 2023. The College was unable to obtain the COD reports needed for monthly direct loan reconciliations. As a result of this condition, the College isn't meeting its obligation to complete reconciliations of direct loans on a monthly basis and risks overdrawing. Auditor Recommendation. We recommend that the College communicate with other schools to develop a policy for handling matters such as these when having technology issues. Corrective Action. Currently, the College has fixed this error and is now able to pull the correct reports from the COD website. The College intends to perform reconciliations of direct loans on a monthly basis going forward. Responsible Person. Maryann Decaire, Director of Financial Aid. Anticipated Completion Date. June 30, 2024.

Categories

Student Financial Aid Cash Management Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 385449 2023-002
    Significant Deficiency
  • 385450 2023-002
    Significant Deficiency
  • 385451 2023-002
    Significant Deficiency
  • 385452 2023-002
    Significant Deficiency
  • 385453 2023-003
    Significant Deficiency
  • 385454 2023-003
    Significant Deficiency
  • 385455 2023-003
    Significant Deficiency
  • 385456 2023-003
    Significant Deficiency
  • 385457 2023-004
    Significant Deficiency
  • 385458 2023-004
    Significant Deficiency
  • 385459 2023-004
    Significant Deficiency
  • 385460 2023-004
    Significant Deficiency
  • 385462 2023-005
    Significant Deficiency
  • 385463 2023-005
    Significant Deficiency
  • 385464 2023-005
    Significant Deficiency
  • 961891 2023-002
    Significant Deficiency
  • 961892 2023-002
    Significant Deficiency
  • 961893 2023-002
    Significant Deficiency
  • 961894 2023-002
    Significant Deficiency
  • 961895 2023-003
    Significant Deficiency
  • 961896 2023-003
    Significant Deficiency
  • 961897 2023-003
    Significant Deficiency
  • 961898 2023-003
    Significant Deficiency
  • 961899 2023-004
    Significant Deficiency
  • 961900 2023-004
    Significant Deficiency
  • 961901 2023-004
    Significant Deficiency
  • 961902 2023-004
    Significant Deficiency
  • 961903 2023-005
    Significant Deficiency
  • 961904 2023-005
    Significant Deficiency
  • 961905 2023-005
    Significant Deficiency
  • 961906 2023-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $1.16M
84.268 Federal Direct Student Loans $821,932
84.425 Education Stabilization Fund $279,026
84.042 Trio_student Support Services $266,457
84.007 Federal Supplemental Educational Opportunity Grants $37,690
84.033 Federal Work-Study Program $15,609
84.048 Career and Technical Education -- Basic Grants to States $9,200