Finding Text
Federal Agency: U.S. Department of Education
Federal Program Title: Student Financial Assistance Cluster
Federal Assistance Listing Number: 84.268
Federal Award Identification Number: P268K241946
Award Period: 7/1/2023 – 6/30/2024
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
an institution to reconcile their records with the Direct Loan funds received from the Secretary and the
Direct Loan disbursement records submitted to and accepted by the Secretary monthly.
Condition: Direct loan reconciliations between the COD, G5, and student accounts were not being
performed monthly.
Questioned Costs: N/A
Context: While testing direct loan reconciliations, it was noted that the University did not perform
monthly reconciliations for the three months selected for testing.
Cause: The University’s process to reconcile direct loans on a monthly basis was not followed during
the year.
Effect: The University is not complying with internal policy and federal requirements to ensure funds
are properly reconciled.
Repeat Finding: N/A
Recommendation: The University should ensure all necessary employees receive proper training,
support, and time to follow the University’s policies and federal requirements related to monthly
reconciliations. There should be a process to maintain all reconciliations as support of performance
monthly.
Views of Responsible Officials: There is no disagreement with the audit finding and the University is
in the process of implementing corrective procedures.