Finding Text
Assistance Listing Number, Federal Agency, and Program Name - 84.268; U.S. Department of Education; Student Financial Assistance Cluster; Federal Direct Student Loan Program
Federal Award Identification Number and Year - June 1, 2021 to May 31, 2022
Finding Type - Material weakness and material noncompliance with laws and regulations
Repeat Finding - Yes
2021-007
Criteria - The Code of Federal Regulations, 34 CFR 685.300(b)(5), requires the School, on a monthly basis, to reconcile the institutional records with the Direct Loan funds received from the secretary of the U.S. Department of Education and the Direct Loan disbursement records submitted to and accepted by the secretary of the U.S. Department of Education.
Condition - The School does not reconcile institutional records with Direct Loan funds received from the secretary of the U.S. Department of Education and the Direct Loan disbursement records submitted to and accepted by the secretary of the U.S. Department of Education.
Questioned Costs - None
Context - During our testing, management stated that the School did not reconcile institutional records with Direct Loan funds received from the secretary of the U.S. Department of Education and the Direct Loan disbursement records submitted to and accepted by the secretary of the U.S. Department of Education for the entire fiscal year ended May 31, 2022.
Cause and Effect - The School does not have a control in place to ensure Direct Loan program reconciliations are performed on a monthly basis.
The lack of a control in place to ensure Direct Loan program reconciliations are performed on a monthly basis results in noncompliance with federal regulations.
Recommendation - We recommend the School implement a control to ensure Direct Loan program reconciliations are performed on a monthly basis.
Views of Responsible Officials and Planned Corrective Actions - There is no disagreement with the audit finding. The Iliff School of Theology has contracted with a professional, third party processing company to administer its student assistance programs who will ensure that Direct Loan reconciliations are conducted on a monthly basis in coordination with the business office.