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YELLOW SHEET Office of the State Auditor of Missouri |
March 26, 2002
Report No. 2002-26
The
following areas of concern were noted in our audit of the Department of Higher
Education, State Guaranty Student Loan Program.
In
our prior audit of this program, we found the department had not recorded any
fixed asset additions or dispositions on the detailed fixed asset listing for
the year ended June 30, 2000.� In addition,
property records were not maintained in a manner that allowed beginning
balances, additions, and dispositions for each year to be reconciled to
balances at the end of the year.� Also,
reconciliations between fixed asset purchases recorded on the Statewide
Advantage for Missouri (SAM II) expenditure reports and additions to the fixed
asset records were not performed.�
Due
to significant personnel turnover among accounting staff, general fixed asset
records were still not maintained on a current basis and periodic
reconciliations of fixed asset additions to equipment purchases per SAM II
system reports were not performed.��
However, in order to prepare financial statements as of June 30, 2001,
the Department of Higher Education (DHE) did compare additions for the fiscal
year to equipment purchases per the SAM II system and updated the general fixed
asset records for additions and deletions that occurred during the year.� The DHE indicated they are now in the process
of obtaining SAM II reports to perform reconciliations of fixed asset additions
for the current fiscal year.
NOTE: In 1978, the Missouri General Assembly created the
Missouri Student loan Program (MSLP) to administer the Federal Family Education
Loan Program (FFELP) in the state of Missouri on behalf of the Coordinating
Board for Higher Education (CBHE).� The
CBHE has statutory authority to oversee the MSLP and to act as the guaranty
agency for the FFELP.� In this capacity,
the CBHE, acting through the MSLP, guarantees loans made to students by
eligible lending institutions.
During
the first state fiscal year of operations, the CBHE guaranteed $15,524,850 in
FFELP loans to 7,289 borrowers.� In
contrast, as of June 30, 2001, the cumulative volume of loans guaranteed was $4,158,308,495,
representing 1,450,871 FFELP loans.�
Included in this total is $1,971,998,912 in outstanding loans.
