FAC Explorer

Finding 512668 (2024-002)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2024-12-02
Audit: 330475
Organization: Northeast Iowa Community College (IA)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: The College lacks documented controls for the Student Account Statement reconciliation after loan disbursement, risking incorrect COD Reporting.
  • Impacted Requirements: Compliance with 34 CFR 685.215 mandates proper submission and control over loan award records to the Department of Education.
  • Recommended Follow-up: The College should enhance and document its controls over COD Reporting and SAS reconciliations to ensure accuracy and compliance.

Finding Text

U.S. Department of Education Student Financial Assistance Cluster Federal Financial Assistance Listing Number(s): 84.063, 84.007, 84.268, 84.033 Compliance Requirement(s): Reporting – COD Reporting Significant Deficiency in Internal Control Criteria: 34 CFR 685.215 states that Institutions are responsible for submitting a loan award record to the Department of Education’s Common Origination and Disbursement (COD) System and receive an accepted response prior to disbursing the loan. The institution is also responsible for implementing an effective control over this process. Condition: During our testing of compliance for COD Reporting, it was noted that there was no documented control over the Student Account Statement (SAS) reconciliation that is performed after loans have been submitted to COD and disbursed. Cause: The College did not have a documented control over the SAS reconciliation process. Effect: Without a secondary review and approval, there is a possibility that the COD Reporting could be incorrect. Questioned Costs: None reported. Context/Sampling: A nonstatistical sample of 3 monthly SAS reconciliations out 12 monthly reconciliations. Repeat Finding from Prior Year(s): No Recommendation: The College should review its current controls over COD Reporting and SAS reconciliations and ensure those controls are properly documented. Views of Responsible Officials: Management agrees with the finding. The Financial Aid Office will retain documentation of the control over the SAS reconciliation process.

Corrective Action Plan

Federal Agency Name: U.S. Department of Education Program Name: Student Financial Assistance Cluster Federal Financial Assistance Listing #84.007, 84.033, 84.063, 84.268 Compliance Requirement: Reporting – COD Reporting Significant Deficiency in Internal Control Finding Summary: During our testing of compliance for COD Reporting, it was noted that there was no documented control over the Student Account Statement (SAS) reconciliation that is performed after loans have been submitted to COD and disbursed. Responsible Individuals: Randy Mashek, Director of Financial Aid Corrective Action Plan: The Financial Aid office will retain documentation of the control over the SAS reconciliation process. Anticipated Completion Date: November 1, 2024.

Categories

Student Financial Aid Reporting Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 512662 2024-001
    Significant Deficiency
  • 512663 2024-001
    Significant Deficiency
  • 512664 2024-001
    Significant Deficiency
  • 512665 2024-001
    Significant Deficiency
  • 512666 2024-001
    Significant Deficiency
  • 512667 2024-001
    Significant Deficiency
  • 512669 2024-002
    Significant Deficiency
  • 512670 2024-002
    Significant Deficiency
  • 512671 2024-002
    Significant Deficiency
  • 512672 2024-002
    Significant Deficiency
  • 512673 2024-002
    Significant Deficiency
  • 1089104 2024-001
    Significant Deficiency
  • 1089105 2024-001
    Significant Deficiency
  • 1089106 2024-001
    Significant Deficiency
  • 1089107 2024-001
    Significant Deficiency
  • 1089108 2024-001
    Significant Deficiency
  • 1089109 2024-001
    Significant Deficiency
  • 1089110 2024-002
    Significant Deficiency
  • 1089111 2024-002
    Significant Deficiency
  • 1089112 2024-002
    Significant Deficiency
  • 1089113 2024-002
    Significant Deficiency
  • 1089114 2024-002
    Significant Deficiency
  • 1089115 2024-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $3.88M
84.268 Federal Direct Student Loans $1.77M
84.031 Higher Education Institutional Aid $353,619
84.048 Career and Technical Education -- Basic Grants to States $322,612
84.042 Trio Student Support Services $269,386
21.027 Coronavirus State and Local Fiscal Recovery Funds $209,761
93.493 Congressional Directives $194,969
84.002 Adult Education - Basic Grants to States $158,066
84.007 Federal Supplemental Educational Opportunity Grants $92,610
84.126 Rehabilitation Services Vocational Rehabilitation Grants to States $86,114
59.037 Small Business Development Centers $59,814
64.027 Post 9/11 Veterans Educational Assistance $54,686
11.307 Economic Adjustment Assistance $44,041
84.033 Federal Work-Study Program $41,292
84.116 Fund for the Improvement of Postsecondary Education $33,475
10.558 Child and Adult Care Food Program $30,125
47.076 Stem Education (formerly Education and Human Resources) $15,123
10.902 Soil and Water Conservation $14,831