Summary of Report 95-084

Report Number 95-084

Overall Conclusion

The University has accurately reported its significant accounts in the University's financial statements. The significant accounts consisted of current unrestricted funds revenues ($570 million) and expenditures ($581 million). The University has established a system to ensure compliance with most federal regulations for its major federal programs and selected non-major federal programs, and this system is working. The University received approximately $140 million through its major federal programs during fiscal year 1994. Non-major programs tested amounted to $7.2 million. However, the University should enhance controls over procedures to comply with student financial aid regulations, and the University's Office of Student Financial Services should strengthen controls over data processing.

Key Findings

• The University's Office of Student Financial Services should not receive loan proceeds from the lenders of the Federal Family Education Loan Program (FFELP). Student Financial Services personnel could process loans and retain the loan proceeds. In fiscal year 1994, the University processed approximately $75.4 million in FFELP loan checks.
  
  
• The University should inform students that authorization for payment of institutional debt is not a requirement for FFELP or Federal Pell Grant Program disbursement.
  
  
• The University should provide timely exit counseling information to all FFELP recipients and report all enrollment changes within the 60-day federal requirement.
  
  
• The University's Office of Student Financial Services should strengthen compensating controls over data processing. Documentation and monitoring activities should be increased for the program modification, program promotion, and job submission functions. In fiscal year 1994 the University disbursed over $90 million in student financial aid.

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