FAC Explorer

Finding 52027 (2022-001)

Significant Deficiency Repeat Finding
Requirement
C
Questioned Costs
-
Year
2022
Accepted
2023-02-26
Audit: 50808
Organization: Lipscomb University (TN)
Auditor: Lbmc PC

AI Summary

  • Core Issue: The University failed to complete monthly reconciliations for the Direct Loan program, only finishing three out of twelve required reconciliations for fiscal year 2022.
  • Impacted Requirements: This non-compliance with federal regulations jeopardizes the accuracy of financial records and the integrity of the Direct Loan program.
  • Recommended Follow-Up: The University should adhere to its procedures to ensure timely reconciliations, have them reviewed by a supervisor, and maintain proper documentation as per retention policies.

Finding Text

Reference Number: 2022-1: Special Tests and Provisions ?Borrower Data and Reconciliation (Direct Loan) Federal Agency: U.S. DEPARTMENT OF EDUCATION Federal Program: Student Financial Aid Cluster Federal Assistance Listing Numbers: Various Federal Award Year: 2021 - 2022 Criteria: Each month, the Common Origination and Disbursement system provides institutions with a School Account Statement (SAS) data file which consists of a Cash Summary, Cash Detail, and Loan Detail records. The University is required to reconcile these files to the University's financial records. Since up to three Direct Loan program years may be open at any given time, institutions may receive three SAS data files each month (34 CFR 685.102(b), 685.301, and 303). Condition: The University completed three of the twelve direct loan reconciliations for fiscal year 2022. Questioned Costs: None Cause: The uncompleted reconciliations were not performed due to a new system implementation and due to turnover in financial aid personnel which prohibited the reconciliation process from being performed on a monthly basis during the fiscal year. Effect: The University was not in compliance with the Federal Direct Loan program requirement of performing and maintaining monthly reconciliations between the Common Origination and Disbursement system information and the University?s internal records. Identification as a repeat finding, if applicable: 2021-001 Recommendation: We recommend the University follow its procedures to ensure monthly reconciliations are performed, reviewed by a supervisory manager, and retain the completed documentation in accordance with the University's retention requirements. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. See corrective action plan.

Corrective Action Plan

Responsible Individual(s): Ron Anderson, Associate VP of Student Financial Services Finding 2022-001 Federal Agency Name: Department of Education Program Name: Student Financial Aid Cluster CFDA No.: Various Finding Summary: In accordance with 34 CFR Sections 685.102(b), 685.301, and 303, each month, the Common Origination and Disbursement system provides institutions with a School Account Statement (SAS) data file which consists of a Cash Summary, Cash Detail, and (optional at the request of the institution) Loan Detail records. The institution is required to reconcile these files to the institution's financial records. Since up to three Direct Loan program years may be open at any given time, institutions may receive three SAS data files each month. During fiscal year 2022, only three of the twelve monthly reconciliations were completed due to a system conversion and turnover in the financial aid department. Corrective Action Plan (CAP): The University will implement procedures to reconcile the Common Origination and Disbursement system to the University?s financial records for Direct Loans monthly. This task will be completed in the Financial Aid Office as assigned by the Director of Financial Aid and monitored by the Associate VP for Student Financial Services. Reconciliations will be completed for each month with disbursements, staring with the 2022-2023 Financial Aid Year. Anticipated Completion Date: The procedures will be implemented for the 2022-2023 Financial Aid Year. Responsible Parties: The monthly reconciliation will be done by staff in the Financial Aid Office as assigned by the Director and monitored by the Associate VP of Student Financial Services.

Categories

Special Tests & Provisions Student Financial Aid Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 52028 2022-002
    Significant Deficiency
  • 52029 2022-001
    Significant Deficiency Repeat
  • 52030 2022-002
    Significant Deficiency
  • 52031 2022-001
    Significant Deficiency Repeat
  • 52032 2022-002
    Significant Deficiency
  • 52033 2022-001
    Significant Deficiency Repeat
  • 52034 2022-002
    Significant Deficiency
  • 52035 2022-001
    Significant Deficiency Repeat
  • 52036 2022-002
    Significant Deficiency
  • 628469 2022-001
    Significant Deficiency Repeat
  • 628470 2022-002
    Significant Deficiency
  • 628471 2022-001
    Significant Deficiency Repeat
  • 628472 2022-002
    Significant Deficiency
  • 628473 2022-001
    Significant Deficiency Repeat
  • 628474 2022-002
    Significant Deficiency
  • 628475 2022-001
    Significant Deficiency Repeat
  • 628476 2022-002
    Significant Deficiency
  • 628477 2022-001
    Significant Deficiency Repeat
  • 628478 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $42.92M
84.425 Education Stabilization Fund - Student Aid Portion $3.52M
84.063 Federal Pell Grant Program $3.35M
93.732 Mental and Behavioral Health Education and Training Grants $466,556
84.425 Education Stabilization Fund - Institutional Portion $377,568
84.007 Federal Supplemental Educational Opportunity Grants $287,012
84.425 Education Stabilization Fund - Teacher Residency Grow Your Own Pipeline Grant $285,679
84.033 Federal Work-Study Program $208,444
47.076 Education and Human Resources $185,397
47.041 Engineering - Lt Effects of Involvement in Humanitarian Eng. Projects on Student Professional Formation & Views of Diversity & Inclusion $55,590
84.407 Transition Programs for Students with Intellectual Disabilities Into Higher Education $20,620
43.008 Education - National Space Grant College and Fellowship Program Training Grant $14,133
88.379 Teacher Education Assistance for College and Higher Education (teach) Grant $7,544
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $4,073
84.367 Improving Teacher Quality State Grants-Number Talk Training for Teachers of Grades 5-8 $1,798