Finding Text
2022-002 Federal Direct Loan Reconciliations Assistance Listing Number: 84.268 Criteria According to 34 CFR 685.300(b)(5), the University must, on a monthly basis, reconcile institutional records with Direct Loan funds received from the Secretary and Direct Loan disbursement records submitted to and accepted by the Secretary. Condition The University did not perform the monthly reconciliations over direct loans. Context We requested a selection of reconciliations out of the 12 required and were informed that only a year-end reconciliation was performed. Cause The reconciliations were not performed due to the University being short-staffed. Effect Direct loan discrepancies may not have been identified and resolved in a timely manner due to the lack of monthly reconciliations. Questioned Cost There were no questioned costs related to this finding. Recommendation We recommend that the University perform direct loan reconciliations monthly to ensure that discrepancies are properly addressed in a timely manner.