Finding 2022-006: Direct Loan Reconciliation ? Material Weakness and Noncompliance Condition: Documentation that the required monthly School Account Statement (SAS) reconciliations were not completed for any of the three monthly tested for the year ended June 30, 2022. Responsible for the Plan: Janet Davidson, Director of Financial Aid Dennis Zeh, Director of Financial Operations Planned completion date: June 30, 2023 Corrective Action Plan: To ensure compliance with the Direct Loan Reconciliation requirements the college will adopt the following procedure. ? On a regular basis the Financial Aid Assistant/Loan Officer will process disbursements of direct loans using Powerfaids. This process will include sending files back and forth through CPS to update the Common Origination and Disbursement (COD) site as well as processing files to Jenzabar to make awards to student accounts. The Financial Aid Assistant/Loan Officer will be responsible for resolving any rejects that are returned through CPS into Powerfaids to ensure that all disbursements are approved and accepted in COD. ? At the beginning of the month the Financial Aid Assistant/Loan Officer will send the Director of Financial Aid the SAS report from CPS. ? The Director will pull the FA transactions from Jenzabar for the previous month and compare it to the COD disbursements to ensure the records match. The Director will prepare the reconciliations detailing the disbursements and drawdowns from COD as well as the disbursements and drawdowns reflected in Jenzabar. The Director will identify any discrepancies. ? Upon completion of the Reconciliation the Director of Financial Aid will review with Financial Aid Assistant/Loan Officer and the Director of Financial Operations ? Additionally, the DFO will ensure that independent reconciliations are performed from the General ledger back to AR Student accounts, this adds an essential third component on the FA review process to enable our identification of funds that are in scope for return but have been incorrectly posted or otherwise not available to the FA reconcilers under the proper AR accounts.