Finding Text
Criteria: Institutions must report all loan disbursements and submit required records to the Common Origination and Disbursement system (COD) within 15 days of disbursement (OMB No. 1845-0021). Each month, the 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 school) Loan Detail records. The school 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, schools may receive three SAS data files each month (34 CFR 685.102(b), 685.301, and 303). Condition and Context: The College was unable to produce the reconciliations for review. Known Questioned Costs: None, reporting requirement not met. Cause: The College had turnover in the financial aid department where the responsibility for the reconciliations were not completed by the department. Effect: The College was out of compliance with the requirement to routinely reconcile its accounts with COD.Recommendation: The College should continue to implement procedures to ensure routine reconciliations with COD are performed as required. The College should also consider creating a training manual for any future new hires to learn the requirements related to federal aid scholarships.