diff --git a/NEWS.md b/NEWS.md
index b36b55c3..8fef2a31 100644
--- a/NEWS.md
+++ b/NEWS.md
@@ -5,6 +5,7 @@
 * [MODAUD-288](https://folio-org.atlassian.net/browse/MODAUD-288) - assertj: Upgrade from 3.27.3 to 3.27.7, change scope from compile to test
 * [MODAUD-296](https://folio-org.atlassian.net/browse/MODAUD-296) - Implement User Audit Enabled Setting
 * [MODAUD-298](https://folio-org.atlassian.net/browse/MODAUD-298) - Extract shared utilities and decouple DiffCalculator from inventory types
+* [MODAUD-271](https://folio-org.atlassian.net/browse/MODAUD-271) - Fix cancellation reason deserialization with consortium source field
 
 ## 2.11.1 2025-04-15 
 * [MODAUD-250](https://folio-org.atlassian.net/browse/MODAUD-250) - Version history of "MARC" records is not tracked
diff --git a/mod-audit-server/src/test/resources/mocks/reason-for-cancellation.json b/mod-audit-server/src/test/resources/mocks/reason-for-cancellation.json
index c8e6b5fa..27fdbac3 100644
--- a/mod-audit-server/src/test/resources/mocks/reason-for-cancellation.json
+++ b/mod-audit-server/src/test/resources/mocks/reason-for-cancellation.json
@@ -5,6 +5,7 @@
       "name": "Patron Cancelled",
       "description": "Cancelled at patron’s request",
       "requiresAdditionalInformation": false,
+      "source": "consortium",
       "metadata": {
         "createdDate": "2020-11-10T03:18:45.399+00:00",
         "updatedDate": "2020-11-10T03:18:45.399+00:00"
diff --git a/ramls/schemas/external/cancellation_reason.json b/ramls/schemas/external/cancellation_reason.json
index a7c0d3b4..4a4c3011 100644
--- a/ramls/schemas/external/cancellation_reason.json
+++ b/ramls/schemas/external/cancellation_reason.json
@@ -23,6 +23,10 @@
       "description" : "Requires additional information",
       "type": "boolean"
     },
+    "source": {
+      "description" : "Label indicating where the record originates from, e.g. 'consortium' for shared cancellation reasons",
+      "type": "string"
+    },
     "metadata": {
       "$ref": "../../raml-util/schemas/metadata.schema",
       "readonly": true