Finding 606395 (2022-003)

Significant Deficiency Repeat Finding
Requirement
LN
Questioned Costs
-
Year
2022
Accepted
2023-03-28
Audit: 30447
Organization: Philander Smith College (AR)

AI Summary

  • Core Issue: The College failed to provide documentation for reconciling the School Account Statement (SAS) data with its financial records.
  • Impacted Requirements: Monthly reconciliation of SAS data files is required to ensure accurate reporting to the Department of Education.
  • Recommended Follow-Up: Strengthen internal controls and maintain proper documentation for all reconciliations to prevent future discrepancies.

Finding Text

Finding 2022-003 ? Federal Direct Student Loan ? Federal Student Financial Aid Cluster, CFDA# 84.268 Compliance Requirement: Reporting, Special Tests ? Borrower Data Transmission and Reconciliation Condition: Documentation to support the College?s reconciliation between the School Account Statement (?SAS?) data file and the College?s financial records were performed was not available. Criteria: Each month, the COD provides institutions with a SAS data file which consists of a Cash Summary, Cash Detail, and (optional at the request of the school) Loan Detail records. The school is required to reconcile these files to the Institution?s financial records. Cause: The College?s internal controls and processes in place surrounding borrower data transmission and reconciliations of the SAS data file need to be strengthened. Context: Two monthly reconciliations were selected for testing and documentation to support that the reconciliation was performed was not available. Effect: Incorrect disbursement dates could be reported to COD. Repeat Finding: This finding was a repeat of Finding 2021-004 in the immediate prior audit. Recommendation: The College should maintain documentation evidencing the reconciliation between the SAS data file and the College?s financial records. Management Response: The College concurs with this finding. Corrective Action Plan: See attached management?s corrective action plan.

Categories

Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties Special Tests & Provisions

Other Findings in this Audit

  • 29951 2022-002
    Significant Deficiency Repeat
  • 29952 2022-002
    Significant Deficiency Repeat
  • 29953 2022-003
    Significant Deficiency Repeat
  • 606393 2022-002
    Significant Deficiency Repeat
  • 606394 2022-002
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $5.54M
84.268 Federal Direct Student Loans $3.95M
84.031 Higher Education_institutional Aid $3.34M
84.063 Federal Pell Grant Program $2.30M
93.558 Temporary Assistance for Needy Families $204,497
84.007 Federal Supplemental Educational Opportunity Grants $140,469
84.033 Federal Work-Study Program $45,462
47.076 Education and Human Resources $38,827
47.083 Integrative Activities $34,270
93.680 Medical Student Education $24,914