Finding Text
Finding No. 2022-008?Special Tests ? Direct Loan Reconciliations Federal Agency: U.S. Department of Education Program: Federal Direct Student Loans: ALN: 84.268 Criteria: Institutions must report all loan disbursements and submit required records to COD within 15 days of disbursement (OMB No. 1845-0021). Each month, COD provides institutions with a School Account Statement (SAS) data file which consists of a Cash Summary, Cash Detail and (optional at the request of the institution) Loan Detail records. The institution is required to reconcile these files to the institution?s financial records. Since up to three Direct Loan program years may be open at any given time, institutions may receive three SAS data files each month (34 CFR 685.102(b), 685.300(b), 685.301, and 303). Condition: Out of two months selected, one month did not have proper documentation to support reconciliation or evidence of review of reconciliation was noted. Questioned Costs: None. Prevalence: One out of two months tested did not have proper support of reconciliation or evidence of review. The sample was not intended to be, and was not, a statistically valid sample. Effect: Lack of a formal reconciliation process and review of the reconciliations could result in the DOE withholding payments to the Conservatory. Cause: There was significant turnover in the people administering the program and records were not properly maintained to support reconciliations performed. Recommendation: We recommend that the Conservatory implement a formal reconciliation process and all records be maintained to support the reconciliation. In addition, we recommend the reconciliation be reviewed by someone other than the person performing the reconciliation procedures. View of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and corrective actions will be made.