Finding Text
Finding 2022-006: Direct Loan Reconciliation - Material Weakness and Noncompliance Federal Program: Student Financial Assistance Cluster - Federal Direct Student Loan Program Federal Agency: U.S. Department of Education Pass-Through Entity: Not applicable Assistance Listing Number: 84.268 Federal Award Year: June 30, 2022 Criterion: 34 CFR 685.300(b)(5) states that on a monthly basis the College must reconcile institutional records with direct loan fund records received from the Secretary and direct loan disbursement records submitted to and accepted by the Secretary. Condition and Context: Documentation that the required monthly School Account Statement (SAS) reconciliations were not completed for any of the three monthly tested for the year ended June 30, 2022. This sample was not statistically valid. Cause and Effect: The College did not have an adequate control to ensure that the SAS reconciliations were performed and reviewed, and as a result, the College did not perform the required monthly reconciliations which could result in variances between the records of the College and the U.S. Department of Education, which could impact the student. Recommendation: The College should implement a process and related control to ensure that the SAS reconciliations are performed monthly and reviewed in a timely manner by the relevant person and to a sufficient level of detail. Management Response: Management agrees with the finding. The Director of Financial Aid will ensure the implementation of procedures and controls in 2023 to ensure monthly School Account Statements (SAS) are processed and reviewed in a timely manner.