Finding Text
Federal Direct Loan (FDL) Monthly Reconciliations DEPARTMENT OF EDUCATION
ALN #: 84.268
Federal Award Identification #: 2022-2023 Financial Aid Year
Condition: The University did not adequately complete FDL monthly reconciliations every month and there was lack of support for review and approval.
Criteria: 34 CFR 685.300(b)(5)
Questioned Costs: $-0-
Context: During our audit we determined that the University did not have support for completing a FDL monthly reconciliation for several months during the fiscal year. The reconciliation that was tested in our audit did not have evidence of review and approval.
Cause: Turnover and staffing challenges in the financial aid office.
Effect: Noncompliance with reconciliation requirements which could lead to unreconciled differences going undetected or not being resolved timely.
Identification as repeat finding, if applicable: N/A
Recommendation: We recommend that the University review the reconciliation requirements and properly complete the mandatory monthly reconciliations for FDL. The University should also review or refer to the U.S. Department of Education (ED) announcement DL-22-07 which included information to assist higher education institutions with the mandatory reconciliation requirements for the FDL Program.
Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.