Finding Text
Type: Internal Control Over Compliance Criteria: The School must ensure that its accounting records clearly reflect that it segregates federal funds from all other funds and can determine the amount of funds related to each federal program. Condition: Federal funds are comingled within the School?s financial aid disbursement account. No reconciliation is done to identify the balance of each type of federal aid that is included in the account. Cause: Federal funds are deposited into one account. Effect: The remaining balance of each type of federal funds included in the account cannot be determined. Recommendation: The School should develop a process for identifying the balance of funds for each financial aid program that is included in the School?s financial aid disbursement account as readily as if those funds were in a separate account. Management?s Response: The school is in the process of establishing procedures to identify the type of federal funds remaining in the financial aid disbursement account.