FAC Explorer

Finding 3932 (2023-004)

Significant Deficiency Repeat Finding
Requirement
C
Questioned Costs
-
Year
2023
Accepted
2023-12-12
Audit: 6218
Organization: Presentation College (SD)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: Presentation College failed to complete 2 out of 12 required monthly reconciliations for Direct Loan cash management.
  • Impacted Requirements: This violates 34 CFR sections 685.301 and 685.303, which mandate proper reconciliation of financial records.
  • Recommended Follow-Up: Conduct one final reconciliation to COD for fiscal year 2023 before the College closure.

Finding Text

Department of Education Student Financial Aid Cluster CFDA # 84.268 – Federal Direct Student Loans 2022-2023 Award Year Cash Management – Reconciliations (Direct Loan) Significant Deficiency in Internal Controls over Compliance Criteria: 34 CFR sections 685.301 and 685.303 provide the criteria and guidance for origination and processing of Direct loans. Presentation College is required to reconcile the monthly School Account Statement (SAS) data file to the institution’s financial records. Condition: When testing cash management related to reconciliations, we noted the following: •2 of the 12 monthly SAS reconciliations were not completed by Presentation College. Cause: Lack of oversight of the monthly reconciliation control resulted in 2 months of reconciliations that were not performed and variances/discrepancies that were not investigated. Effect: The lack of monthly reconciliations of SAS data files can result in discrepancies not being found in a timely manner between amounts reported in COD compared to the institution’s records. Questioned Costs: None reported. Context/Sampling: All 12 monthly reconciliations were selected for testing to ascertain that a reconciliation is being performed on a monthly basis. Repeat Finding from Prior Year(s): Yes. Recommendation: Based on the announced College closure, we recommend the College complete one final reconciliation to COD for fiscal year 2023. Views of Responsible Officials: Management agrees with the finding.

Corrective Action Plan

Finding 2023-004 Cash Management –Reconciliations (Direct Loan) Federal Agency Name: Department of Education Program Name: Student Financial Aid Cluster CFDA # 84.268 – Federal Direct Student Loans Finding Summary: When testing cash management related to reconciliations, the auditors noted 2 of the 12 monthly SAS reconciliations were not completed. Responsible Individuals: Jillaine Smith, Chief Operating Officer, Erin Drew, Facilitator of Advancement Services and Patty Pietz, Presentation Sisters Accountant. Corrective Action Plan: The Student Financial Aid Director completed a final reconciliation after final disbursements were made to students to ensure all aid awards was correctly reflected. Anticipated Completion Date: September 30, 2023

Categories

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

Other Findings in this Audit

  • 3930 2023-006
    Significant Deficiency
  • 3931 2023-003
    Material Weakness Repeat
  • 3933 2023-005
    Significant Deficiency
  • 3934 2023-006
    Significant Deficiency
  • 3935 2023-006
    Significant Deficiency
  • 3936 2023-003
    Material Weakness Repeat
  • 3937 2023-006
    Significant Deficiency
  • 3938 2023-007
    Significant Deficiency
  • 3939 2023-003
    Material Weakness Repeat
  • 3940 2023-005
    Significant Deficiency
  • 3941 2023-006
    Significant Deficiency
  • 580372 2023-006
    Significant Deficiency
  • 580373 2023-003
    Material Weakness Repeat
  • 580374 2023-004
    Significant Deficiency Repeat
  • 580375 2023-005
    Significant Deficiency
  • 580376 2023-006
    Significant Deficiency
  • 580377 2023-006
    Significant Deficiency
  • 580378 2023-003
    Material Weakness Repeat
  • 580379 2023-006
    Significant Deficiency
  • 580380 2023-007
    Significant Deficiency
  • 580381 2023-003
    Material Weakness Repeat
  • 580382 2023-005
    Significant Deficiency
  • 580383 2023-006
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $2.87M
84.063 Federal Pell Grant Program $836,094
84.038 Federal Perkins Loan Program $261,044
84.007 Federal Supplemental Educational Opportunity Grants $39,365
84.033 Federal Work-Study Program $30,385