Finding Text
2023-002
Federal Agency: Department of Education
Federal Program Title: Student Financial Assistance Cluster
Assistance Listing Number: 84.038, 84.268, 84.033, 84.007, 84.063, 84.268, 93.264
Award Period: July 1, 2022 to June 30, 2023
Type of Finding: Significant Deficiency in Internal Control over Compliance, and Other matter
Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 685.300(b)(5) requires the University on a monthly basis, to reconcile the institutional records with the federal funds received from the Secretary and the Direct Loan disbursement records submitted to and accepted by the Secretary.
Condition: During our testing, we noted there was no documentation of the reconciliations and reviews of a number of federal funds, including direct loans, Pell, SEOG, TEACH, and Perkins funds.
Questioned Costs: None reported
Context: We noted the proper reviews over reconciliations was not taking place.
Cause: We noted there were not the proper policies and controls in place to make sure this review was occurring.
Effect: The University is not complying with internal policy and federal requirements to ensure funds are properly reconciled.
Repeat Finding: No
Recommendation: The University should ensure all necessary employees receive proper training, support, and time to follow the University's policies and federal requirements related to monthly reconciliations.
Views of Responsible Officials: There is no disagreement with the audit finding.