Finding 624888 (2022-001)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-03-20

AI Summary

  • Core Issue: The Center failed to document reconciliations between its records and Direct Loan funds for all drawdowns, leading to potential discrepancies.
  • Impacted Requirements: Noncompliance with 34 C.F.R. § 685.300(b)(5), which mandates monthly reconciliations of institutional records with Direct Loan funds.
  • Recommended Follow-Up: Implement procedures for thorough reconciliations of each cash drawdown and maintain documentation; investigate and resolve any identified variances promptly.

Finding Text

Direct Loan Reconciliation ? Noncompliance/Material Weakness Finding Number: 2022-001 Assistance Listing Number and Title: AL # 84.063 and 84.268 Student Financial Assistance Cluster Federal Award Identification Number / Year: None / 2022 Federal Agency: US Department of Education Compliance Requirement: Special Tests and Provisions ? Direct Loan Reconciliation Pass-Through Entity: Ohio Department of Education Repeat Finding from Prior Audit? No 34 C.F.R. ? 685.300(b)(5) states 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. As the Center only has nine drawdowns during the fiscal year, the Center performs a reconciliation for each drawdown. For three out of three (100%) drawdowns tested, we noted the Center did not maintain documentation the Center's Achademix System was reconciled to the Common Origination and Disbursement (COD) System at the time of the drawdown. Additionally, the Cash Activity report within the Common Origination and Disbursement System after the May 11, 2022 drawdown reflects a variance of $866 within the "Cash>Net Accepted & Posted Disbursements", therefore indicating a difference between the accepted drawdowns and posted drawdowns. As of January 19, 2023, this variance is still reflected within the Common Origination and Disbursement (COD) System. Failure to maintain documentation that reconciliations were performed as required could result in discrepancies being undetected and unresolved timely. The Center should implement procedures to ensure a reconciliation is performed for each cash drawdown and proper documentation is maintained as proof a reconciliation was performed. When variances are identified, the Center should investigate the reason for the discrepancies and timely resolve them.

Categories

Special Tests & Provisions Student Financial Aid Subrecipient Monitoring Cash Management Material Weakness Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 48446 2022-001
    Material Weakness
  • 48447 2022-001
    Material Weakness
  • 624889 2022-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $755,033
84.048 Career and Technical Education -- Basic Grants to States $643,852
84.425 Covid - 19 Higher Education Emergency Relief Fund - Heerf Institutional Portion $498,660
84.063 Federal Pell Grant Program $441,347
10.555 National School Lunch Program $417,459
84.425 Covid - 19 Higher Education Emergency Relief Fund - Heerf Student Aid Portion $354,650
84.002 Adult Education - Basic Grants to States $106,371
10.553 School Breakfast Program $95,163
84.425 Covid - 19 Governor's Emergency Education Relief Fund - Geer I and II $73,108
84.425 Covid - 19 Governor's Emergency Education Relief Fund - Geer II $66,931
10.555 Covid-19 National School Lunch Program $61,916
10.558 Child and Adult Care Food Program $14,635
10.649 Covid-19 Pandemic Ebt Administrative Costs $614