ERIC Number: ED381080
Record Type: Non-Journal
Publication Date: 1995-Mar
Reference Count: N/A
Financial Statement Audit: U.S. Department of Education, Federal Direct Student Loan Program for the Year Ended September 30, 1994. Audit Control Number 17-48320.
Office of Inspector General (ED), Washington, DC.
An independent audit was done of the principal financial statements of the William D. Ford Federal Direct Loan Program of the Department of Education for the year ending September 30, 1994. In planning and performing the review the auditors considered the internal control structure of the program in order to determine auditing procedures. The report on internal control structure disclosed conditions existing during fiscal year 1994 which were considered reportable. Specifically, the auditors reported controls within the Direct Loan Program's loan origination, servicing, and reporting systems that needed improvements. These were not, however, considered to be material weaknesses. Recommendations for improvements were offered in the following areas: (1) reconciliation and reporting efforts to ensure loan origination data accuracy and prompt recording and receiving at the Department; (2) improved ability to monitor cash management to reduce potential risk of excess cash balances at schools; (3) improved school level controls (inaccurate and incomplete records were found at visits to seven participating schools). In an examination of the program compliance with laws and regulation, the auditors found positive assurance of compliance with laws and regulations for items tested. The program's principal financial statements are included in the Financial Report section. Appended is a management response to the audit recommendations. (JB)
Publication Type: Reports - Evaluative
Education Level: N/A
Authoring Institution: Office of Inspector General (ED), Washington, DC.