Section III – Findings and Questioned Costs – Major Federal Programs (Continued)
Federal Agency: US Department of Education
Federal Program Name: Federal Direct Student Loans
Assistance Listing Number: 84.268
Federal Award Identification Number and Year: P268K230147; P268K240147 - 2024
Award Period: July 1, 2023 – June 30, 2024
Type of Finding:
Criteria or specific requirement: The Code of Federal Regulations, 34 CFR 685.300(b)(5), states though a school decides the frequency and methods it will use for internal reconciliation, Direct Loan reconciliation must occur at least monthly and should occur before the required monthly reconciliation to the Direct Loan SAS. Schools must maintain documented results of its monthly reconciliation to provide to auditors and reviewers at their request.
Condition: Direct loan reconciliations between the COD, G5 and student accounts did not have evidence of being reviewed.
Context: During our testing, two out of three direct loan reconciliations tested did not have evidence of being reviewed.
Cause: The University did not adhere to controls in place for all reconciliations.
Effect: The University is not complying with internal policy.
Repeat Finding: Yes, 2023-020
Recommendation: We recommend management maintain proper recordkeeping and retention of documentation and review of such documentation.
Views of responsible officials: There is no disagreement with the audit finding.