Finding Text
Reference Number: 2022-1: Special Tests and Provisions ?Borrower Data and Reconciliation (Direct Loan) Federal Agency: U.S. DEPARTMENT OF EDUCATION Federal Program: Student Financial Aid Cluster Federal Assistance Listing Numbers: Various Federal Award Year: 2021 - 2022 Criteria: Each month, the Common Origination and Disbursement system provides institutions with a School Account Statement (SAS) data file which consists of a Cash Summary, Cash Detail, and Loan Detail records. The University is required to reconcile these files to the University's financial records. Since up to three Direct Loan program years may be open at any given time, institutions may receive three SAS data files each month (34 CFR 685.102(b), 685.301, and 303). Condition: The University completed three of the twelve direct loan reconciliations for fiscal year 2022. Questioned Costs: None Cause: The uncompleted reconciliations were not performed due to a new system implementation and due to turnover in financial aid personnel which prohibited the reconciliation process from being performed on a monthly basis during the fiscal year. Effect: The University was not in compliance with the Federal Direct Loan program requirement of performing and maintaining monthly reconciliations between the Common Origination and Disbursement system information and the University?s internal records. Identification as a repeat finding, if applicable: 2021-001 Recommendation: We recommend the University follow its procedures to ensure monthly reconciliations are performed, reviewed by a supervisory manager, and retain the completed documentation in accordance with the University's retention requirements. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. See corrective action plan.