Reconciliation is a process in which Title IV aid (grants, loans and campus-based aid) recorded on the Department of Education (ED) systems is reviewed and compared with a school’s internal records. In addition to identifying any discrepancies, a school must resolve discrepancies and document the reasons for any remaining cash balances. It is always recommended that the Financial Aid and Business offices, reconcile their records before reconciling to ED. Schools must document their reconciliation efforts and retain this documentation for auditing purposes.
Additional information from ED can be found here:
2014-2015 Federal Student Aid Handbook Volume 4 - Processing Aid and Managing FSA Funds
- 2013 Blue Book Volume 8 Chapter 5
- 2013 FSA Conference Information from Sessions 8, 11, 20
2014 FSA Conference Sessions 18, and 19