Finding 387847 (2023-003)

U.S. Department of Education Student Financial Assistance Cluster Federal Work-Study Program Year ended June 30, 2023 ALN 84.033 Criteria: Per 34 CFR 675.26 (a)(1), the federal share of federal work study compensation paid to a student employed other than by a private for-profit organization, as described in CFR 675.23, may not exceed 75% unless otherwise approved. Condition: The Conservatory did not have a process in place to track and record into the accounting records the institutional share of the federal work study as amounts were paid to students during the year. Cause: Due to turnover within the accounting and student financial aid departments, the reconciliation process was not performed during the year. Effect: A lack of reconciliation of the institutional matching requirement could result in excess federal funds being drawn down during the year. Questioned costs: None identified. Prevalence: There was no reconciliation process during the year to record the institutional match for federal work study funds paid to students during the year. Total earned compensation for the federal work study program was $300,100. Repeat finding: This is not a repeat finding. Recommendation: We recommend the Conservatory implement a formal process throughout the year to ensure federal work study amounts paid to students are recorded between the institutional and federal share. In addition, a reconciliation process should be implemented to ensure amounts are properly recorded and this reconciliation should be reviewed and evidence of the review should be retained. View of responsible officials and planned corrective actions: Management agrees with the finding. See corrective action plan.