Finding Text
Department of Education
Student Financial Aid Cluster
CFDA # 84.268 – Federal Direct Student Loans
2022-2023 Award Year
Cash Management – Reconciliations (Direct Loan)
Significant Deficiency in Internal Controls over Compliance
Criteria: 34 CFR sections 685.301 and 685.303 provide the criteria and guidance for origination and processing of Direct loans. Presentation College is required to reconcile the monthly School Account Statement (SAS) data file to the institution’s financial records.
Condition: When testing cash management related to reconciliations, we noted the following:
•2 of the 12 monthly SAS reconciliations were not completed by Presentation College.
Cause: Lack of oversight of the monthly reconciliation control resulted in 2 months of reconciliations that were not performed and variances/discrepancies that were not investigated.
Effect: The lack of monthly reconciliations of SAS data files can result in discrepancies not being found in a timely manner between amounts reported in COD compared to the institution’s records.
Questioned Costs: None reported.
Context/Sampling: All 12 monthly reconciliations were selected for testing to ascertain that a reconciliation is being performed on a monthly basis.
Repeat Finding from Prior Year(s): Yes.
Recommendation: Based on the announced College closure, we recommend the College complete one final reconciliation to COD for fiscal year 2023.
Views of Responsible Officials: Management agrees with the finding.