The objective of our audit was to determine the extent to which FSA had processes for planning and managing the transition to the Next Generation (Next Gen) loan servicing environment to achieve the project’s intended outcomes. Our audit covered FSA’s processes for planning and managing the transition to the Next Gen loan servicing environment from October 1, 2016, through July 31, 2021.
Although FSA had processes in place for planning and managing the transition to the Next Gen loan servicing environment, FSA did not perform key steps within those processes or follow best practices for acquisition planning that could have better ensured the proper planning and managing of the transition.
We made the following two recommendations: (1) that FSA’s Chief Operating Officer establish controls to ensure that all steps are completed and documented for projects as required and (2) that the Chief Operating Officer develop and implement a policy that requires an investment request or budget initiative request for a project to be completed and approved prior to the issuance of bid solicitations for the project.
Oversight and Monitoring—Student Financial Assistance Programs