Finding 46683 (2022-002)

-
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2022-12-19

AI Summary

  • Issue: One monthly reconciliation (April 2022) was completed over 30 days late, violating federal requirements.
  • Impacted Requirement: Monthly reconciliations of Direct Loan funds must be completed within 30 days of month-end.
  • Recommended Follow-Up: Review calendar reminders for reconciliations and consider cross-training staff to ensure timely completion during busy periods.

Finding Text

Criteria: 34 CFR 685.300(b)(5) [The school must] on a monthly basis, reconcile institutional records with Direct Loan funds received from the Secretary and Direct Loan disbursement records submitted to and accepted by the Secretary. Condition: Four of the monthly direct loan reconciliations were selected for testing. While all of the reconciliations were performed, we noted one month (April 2022) was reconciled on June 21, 2022 which is more than 30 days after the month-end. Context: The deficiency was discovered during the audit testing of direct loan reconciliations. Effect: The University should reconcile their internal records to those maintained by the department of education on a monthly basis. One month was not reconciled timely. Cause: The month in question, April 2022, should have been reconciled in May 2022. May 2022 was a busy time at the University with financial aid disbursements and several vacations for key personnel. While planned, the scheduled reconciliation had to be rescheduled and was not performed until the next month. Recommendation: We noted management has utilized calendar reminders to ensure the reconciliations are performed timely. We recommend these reminders be reviewed periodically to account for busy periods and any time-off that may conflict with the reconciliations. We also recommend management consider cross-training personnel to provide some redundancy should scheduling not allow for timely reconciliations with regular personnel.

Corrective Action Plan

Finding: 2022-002 Student Financial Assistance Cluster Special Tests and Provisions 84.268 Department?s Response: We concur Corrective Action: This finding was an oversight due to varying schedule conflicts. The Director of Financial aid has scheduled in advance reoccurring monthly reconciliation meetings. Additionally the business office will be trained to attend reconciliation meetings in case of future scheduling conflicts. Contact: Sally Kalstrom Anticipated Completion Date: Immediately

Categories

Student Financial Aid Matching / Level of Effort / Earmarking

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $16.79M
84.425 Education Stabilization Fund $359,932
84.033 Federal Work-Study Program $126,128
84.063 Federal Pell Grant Program $98,495
84.007 Federal Supplemental Educational Opportunity Grants $72,000
93.213 Research and Training in Complementary and Integrative Health $21,791