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 685.300(b)(5) requires the College, on a monthly basis, to reconcile the institutional records with the Direct Loan funds received from the Secretary and the Direct Loan disbursement records submitted to and accepted by the Secretary.
Condition: During our testing, we noted the College did not perform monthly reconciliations for the months of October 2023 and November 2023.
Questioned Costs: None
Context: During our testing, we noted the College did not perform monthly reconciliations for the months of October 2023 and November 2023.
Cause: The College’s management did not have the knowledge to complete the reconciliation or the time to learn the process or complete.
Effect: College is not complying with internal policy and federal requirements to ensure funds are properly reconciled.
Repeat Finding: No
Auditor’s Recommendation: We recommend that the College ensure its 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.