Finding 964010 (2023-002)

Significant Deficiency
Requirement
C
Questioned Costs
-
Year
2023
Accepted
2024-03-28
Audit: 299686
Auditor: Tait Weller

AI Summary

  • Core Issue: The Academy failed to perform required monthly SAS reconciliations for the Student Financial Aid Cluster.
  • Impacted Requirements: This violates 34 CFR 668.162(b)(5), which mandates monthly reconciliations between institutional and federal records.
  • Recommended Follow-Up: The Academy should enhance its compliance controls to ensure timely completion of SAS reconciliations each month.

Finding Text

Federal Award Findings and Questioned Costs Finding 2023-002: No SAS Reconciliations – Significant Deficiency Federal Program: Student Financial Aid Cluster – Federal Direct Loan Program Federal Agency: Department of Education CFDA Number: 84.268 Criteria: 34 CFR 668.162(b)(5) states that on a monthly basis the Academy must reconcile institutional records with direct loan fund records received from the Secretary and direct loan disbursement records submitted to and accepted by the Secretary. Condition: Documentation that the required monthly School Account Statement (SAS) reconciliations were completed was not available for fiscal year 2023. Questioned Costs: None Cause: The Academy did not perform the required SAS reconciliations monthly as required. Effect: Not performing the SAS reconciliation could result in variances between the Academy’s records and the U.S. Department of Education records, which could impact the student. Identification of Repeat Findings: This is not a repeat finding. Recommendation: The Academy should review and revise its controls over compliance to ensure that SAS reconciliations are performed monthly. Views of Responsible Officials: Management agrees with this finding.

Categories

Student Financial Aid Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 387568 2023-002
    Significant Deficiency
  • 387569 2023-003
    Significant Deficiency Repeat
  • 387570 2023-003
    Significant Deficiency Repeat
  • 387571 2023-003
    Significant Deficiency Repeat
  • 387572 2023-003
    Significant Deficiency Repeat
  • 964011 2023-003
    Significant Deficiency Repeat
  • 964012 2023-003
    Significant Deficiency Repeat
  • 964013 2023-003
    Significant Deficiency Repeat
  • 964014 2023-003
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $1.29M
84.063 Federal Pell Grant Program $198,806
45.024 Promotion of the Arts_grants to Organizations and Individuals $40,000
45.301 Museums for America $36,000
84.033 Federal Work-Study Program $24,113
84.007 Federal Supplemental Educational Opportunity Grants $16,199