Finding Text
Federal Agency: U.S. Department of Education Federal Program Title: Student Financial Aid Assistance Listing Number: Student Financial Aid Cluster Award Period: July 1, 2021 to June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control Criteria or Specific Requirement: The 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Condition: During our testing, we noted the College did not have a formal review of their monthly reconciliations related to Direct Loans, Pell, SEOG, FWS nor did they have a review prior to their G5 drawdowns. Likewise, the College did not have a formal review of their award packaging during the 2021-22 academic year. Lastly, the College did not have a formal review of their return of Title IV fund calculations. Questioned Costs: None Context: The College did not have proper internal controls in place during the 2021-22 academic year to ensure compliance with federal statutes, regulations, and the terms and conditions of the federal award. Cause: The College's processes and controls were not formally documented during the year as they had significant turnover in the financial aid department. Effect: The College is not following the compliance with federal statutes, regulations, and the terms and conditions of the federal award. Repeat Finding: No Recommendation: We recommend the College review its procedures to ensure the students' cost of attendance is correctly reported to ensure proper awarding. Views of responsible officials: There is no disagreement with the audit finding.