Finding Text
Federal Agency US Department of Education
Federal Program Name Student Financial Assistance Cluster
Assistance Listing Number 84.268
Federal Award Identification Number and Year P268K24032 - 2024
Pass-Through Agency (if applicable) N/A
Pass-Through Number(s) (if applicable) N/A
Award Period 7/1/2023-6/30/2024
Compliance Requirement Affected Cash Management
Type of Finding
Internal Control Significant Deficiency
Document judgment for your assessment Control finding did not result in material questioned costs-therefore we will document as a SD. Additionally qualitatively failure did not have material impact on compliance.
Compliance Not Material
Document judgment for your assessment Not greater than 5% and not a systemic failure
Criteria or specific requirement "The Code of Federal Regulations (34 CFR 685.300(b)(5)) and the Federal Student Aid Handbook, Volume 4, Chapter 6, states loan reconciliation is a mandatory monthly process requiring the comparison of both internal and external records to be completed by an institution participating in the Direct Loan Program. Reconciliation is conducted to identify and resolve differences between net draws and disbursements reported to the Common Origination and Disbursement for a specific award year. An institution must document the reasons and resolve the discrepancies identified during the reconciliation process and that a review had been performed.
Per 2 CFR 200.303, nonfederal entities receiving federal awards are required to establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements."
Condition The College did not have documentation that Direct Loan Reconciliation was performed.
Questioned costs: N/A
Known
Likely
Context During our testing we identified the March 2024 Direct Loan Reconciliation was not timely performed and documented.
Cause Due to staff turnover, direct loan reconciliation for March 2024 was not performed timely.
Effect Failure to perform reconciliations timely could result in errors going undetected by student financial aid management.
Repeat Finding No
Recommendation We recommend the College implement a formal review procedure to document that the direct loan reconciliations are performed on a timely basis each month.
Views of Responsible Officials Agree