Finding 947584 (2023-001)

Federal Program – Student Financial Assistance Cluster Assistance Listing No. 84.268 U.S. Department of Education Program Year 2022–2023 Criteria or Specific Requirement – Direct Loan Reconciliation CFR 685.300 Condition – The University’s failed to complete required direct loan reconciliations during the 2022–2023 aid year. The University is responsible for reconcilng University disbursement data to the Department of Education’s Common Origination and Disbursement System on a monthly basis and for establishing internal controls to ensure that such reconciliations are completed within federal requirements. Questioned Costs – N/A Context – Out of a population of 12 months, two months were selected for testing. No support for the monthly reconcilations for these months was able to be provided, and it was noted that reconcilations did not take place for any months during the year ended May 31, 2023. Our sample was not, and was not intended to be, statistically valid. Effect – The University failed to complete monthly reconcilations as required and could have had errors in direct loans that were not identified. Cause – The University experienced turnover and decreased staffing levels during the year. Identification as a Repeat Finding, if Applicable – N/A Recommendation – The University should put controls in place to ensure that reconcilations are being completed on a monthly basis as required. Corrective Action Plan – OLLU has already begun coordinating processes between its Accounting and Financial Aid departments to download the monthly SAS into the University’s system electronically, where Accounting will then reconcile the statement monthly as part of its month-end close procedures. The Financial Aid Director will be responsible for ensuring that the statement is downloaded monthly as a part of the regular electronic data file transfer between OLLU and the Department of Education. The Senior Accountant in the Accounting Department will generate the report in Colleague via the DRSS process and reconcile the SAS statement to cash records. The Director of Accounting and Reporting will review the reconciliation monthly. Anticipated Completion Date – February 15, 2024