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, 2023 to June 30, 2024
Type of Finding:
Significant Deficiency in Internal Control Over Compliance
Other Matters
Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 668.16 and volume 4 states that, at a minimum, the College should reconcile its FSA financial records monthly and should be conducted on a more frequent basis during periods of high transaction volume.
Condition: During our testing, we noted there was no formal process in place for reconciling and reviewing the Nursing Student Loan (NSL) and Nurse Faculty Loan (NFL) balances on a regular basis.
Questioned Costs: None
Context: We noted there was no reconciliation process in place for NSL and NFL balances to ensure they are properly stated each period.
Cause: We noted there were not the proper policies and controls in place to make sure this reconciliation and review was occurring.
Effect: Timely reconciliations and adequate review of financial transactions can protect the College’s assets and ensure the accounting records are accurate.
Repeat Finding: Yes, see finding 2023-008.
Auditor’s Recommendation: The College should ensure all necessary employees receive proper training, support, and time to follow the College's policies and federal requirements related to monthly reconciliations.
Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with the audit finding.