Finding Text
Federal Direct Loans Reconciliations DEPARTMENT OF EDUCATION
ALN #: 84.268
Federal Award Identification #: 2022-2023 Financial Aid Year
Condition: The University did not adequately complete monthly reconciliations for Federal Direct Loans.
Criteria: 34 CFR 685.300(b)(5)
Questioned Costs: $0
Context: During the audit, it was determined that the University did not properly complete the mandatory monthly reconciliations for Federal Direct Loans.
Cause: Staff turnover and management oversight.
Effect: The University was not in compliance with the reconciliation requirements. Errors between disbursements reported to COD and actual disbursements to students’ accounts were not identified and corrected timely.
Identification as repeat finding, if applicable: 2022-004
Recommendation: We recommend that the University review the reconciliation requirements and properly complete the mandatory monthly reconciliations for Federal Direct Loans. The University should also review or refer to the U.S. Department of Education (ED) announcement DL-22-07 which included information to assist higher education institutions with the mandatory reconciliation requirements for the Federal Direct Loan Program.
Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.