Finding Text
Federal Program: Federal Direct Student Loans [AL #84.268]. Criteria: Per the FSA Handbook page 4-131, ?A school that participates in the Direct Loan Program is required to reconcile cash (funds it received from the G5 system to pay its students) with disbursements (actual disbursement recorded) it submitted to the Common Origination and Disbursement (COD) system monthly.? Condition: For the fiscal year ending May 31, 2022, monthly Direct Loan Reconciliations were not performed for the months of June 2021 through September 2021. Cause: There was a transition of personnel in the finance department resulting in monthly reconciliations not being performed. Effect: Direct loans may not reconcile on a monthly basis for the months of June 2021 through September 2021 between the finance department, financial aid department, G5, and COD. As such funds may be required to be returned and were not identified in a timely manner. Questioned Costs: None identified. Context: Sample was not able to be obtained from the months of June 2021 through September 2021. Repeat Finding: This is a repeat finding. Recommendation: We recommend the Academy review their internal controls and document them to ensure compliance during transitional periods of personnel.. Views of Responsible Officials: The Academy is in agreement with the finding. Direct Loan reconciliations will be performed on a monthly basis moving forward by the Director of Financial Aid and a report provided to the VP of Administration of Finance showing the tie out between G5 and COD.