Core Issue: The University failed to provide documentation for monthly reconciliations of Direct Loan funds from July to December 2021.
Impacted Requirements: This noncompliance violates 34 CFR 685.300(b)(5), which mandates reconciliation of institutional records with Direct Loan disbursement records.
Recommended Follow-Up: Implement monitoring controls over the reconciliation process with the third-party financial aid consultant to ensure compliance.
Finding Text
Federal Agency: U.S. Department of Education ALN and Title: Student Financial Aid (SFA) Cluster ? 84.268 Federal Direct Student Loans Award Number: Various Area: Special Tests and Provisions ? Direct Loan Reconciliation Questioned Cost: $0 Criteria: 34 CFR 685.300(b)(5) requires institutions to reconcile institutional records with Direct Loan funds received from the Secretary and Direct Loan disbursement records submitted to and accepted by the Secretary (through School Account Statements (SAS) from COD)). Condition: No documentation was provided for monthly reconciliations performed from July to December 2021. Cause: The University only started performing reconciliations in January 2022 with the assistance of its third-party financial aid private consultant. Effect: The University is noncompliant with the requirements of the special test and provisions on direct loan reconciliation. Identification as a repeat finding: 2021-009 Recommendation: The University must implement monitoring controls over the monthly direct loan reconciliation process performed by the third-party financial aid private consultant. Views of responsible officials: Management agrees. Refer to Corrective Action Plan.
Categories
Special Tests & ProvisionsStudent Financial AidSubrecipient MonitoringMatching / Level of Effort / Earmarking