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.