Finding Text
2022-002 Borrower data and reconciliation reporting Cluster: Student Financial Assistance Cluster Grantor: Department of Education Award Name: Federal Direct Student Loans Award Year: July 1, 2021 ? June 30, 2022 Assistance Listing Number: 84.268 Criteria 34 CFR 685.300(b)(5): In the program participation agreement, the school must promise to comply with the Act and applicable regulations and must agree to - On a monthly basis, reconcile institutional records with Direct Loan funds received from the Secretary and Direct Loan disbursement records submitted to and accepted by the Secretary. Condition Through our testing of 3 Student Account Statement (SAS) reconciliations, we noted 1 instance where the SAS reconciliation was not performed. Cause The University did not have sufficient oversight over the personnel who was performing the SAS reconciliations from the summer leading up to the 2021-2022 academic year through March 2022. As a result, the September 2021 disbursements were not reconciled and the University did not have the appropriate controls in place to identify that the reconciliation was not performed. Effect Without the appropriate reconciliation of direct loan disbursements, the University has an increased risk that federal funding disbursed will not be effectively managed and expended in accordance with the terms and conditions of its agreement with the federal agency. Questioned Costs None identified. Recommendation We recommend that the University implement a second level of review to ensure that SAS reconciliations are prepared and reviewed on a timely basis. Management?s Views and Corrective Action Plan Management?s views and corrective action plan are included at the end of this report after the summary schedule of prior audit findings and status.