Audit 335723

Enrollment Reporting Type of Finding - Material noncompliance with Enrollment Reporting compliance requirement and material weakness in internal control over compliance Program: Student Financial Assistance Cluster Assistance Listing Number: Federal Pell Grants 84.063, Federal Direct Loans 84.268 Federal Agency: U.S. Department of Education Criteria - 34 CFR 690.83(b)(2) and 34 CFR 685.309 provide regulations to institutions for the accurate and timely reporting of student enrollment information. Institutions must review, update, and verify student enrollment statuses, program information, and effective dates to the Department of Education. The institution should have sufficient internal controls over program compliance to report information accurately and timely. Condition - Two students were found to have a status change effective date reported to the Department of Education that was not compliant with enrollment reporting guidelines. Cause - The College’s system does not always report status changes correctly and the status report requires a review prior to submission. The internal controls over the review of student status changes were not effective at preventing or detecting and correcting noncompliance with the requirements. Effect - The status changes were reported incorrectly and/or untimely to the Department of Education. Questioned Costs - Not applicable. Context - Out of our sample of 40 students with status changes, two students were found to have status changes reported that were not compliant with the enrollment reporting requirements. Identification as a Repeat Finding - A similar finding was identified in the audit for the year ending June 30, 2023 as finding 2023-001. Recommendation - The individuals responsible for identifying and reviewing effective status change dates need to be educated on the requirements. Views of Responsible Official - Management concurs with the finding and is providing those responsible for compliance with appropriate education on the compliance requirements. The College is reviewing the processes and controls and will make changes as necessary to prevent and/or detect and correct noncompliance on a timely basis.

Eligibility Type of Finding - Noncompliance with Eligibility compliance requirement and significant deficiency in internal control over compliance Program: Student Financial Assistance Cluster Assistance Listing Number: Federal Supplemental Educational Opportunity Grant (FSEOG) 84.007 Federal Agency: U.S. Department of Education Criteria - 34 CFR 676.10 and 676.20 provide regulations to institutions on minimum and maximum amount of Federal Supplemental Education Opportunity Grant (FSEOG) amounts that can be awarded. The institution should have sufficient internal controls over program compliance to prevent, identify and correct grant amounts awarded incorrectly. Condition - One error was identified when testing the amount awarded for Federal Supplemental Education Opportunity Grant (FSEOG). One student was awarded $68 in FSEOG funds when the minimum amount to be awarded is $100. This resulted in an under-award of $32. Cause - The internal controls over the review of awarded assistance was not effective at preventing or detecting and correcting noncompliance with the requirements. Effect - Incorrect award amounts could go undetected resulting in an under- or over-award of student financial assistance. Questioned Costs - The one error identified within our forty-item sample resulted in an under-award of $32 for an FSEOG recipient. Context - One student was under-awarded aid out of a sample of 40 students. Identification as a Repeat Finding - Not Applicable. Recommendation - The College needs to ensure the reconciliation of the amounts awarded in the College’s system to the eligible award per the Department of Education is being performed by an individual with appropriate knowledge of award compliance requirements. Views of Responsible Official - Management concurs with the finding and is providing those responsible for compliance with appropriate education on the compliance requirements. The College is reviewing the processes and controls and will make changes as necessary to prevent and/or detect and correct noncompliance on a timely basis.

Reporting Type of Finding - Noncompliance with Reporting compliance requirement and significant deficiency in internal control over compliance Program: Student Financial Assistance Cluster Assistance Listing Number: Federal Perkins Loan 84.038 Federal Agency: U.S. Department of Education Criteria - 34 CFR 674.19 provided regulation to institutions on reporting of Federal Perkins Loan. Each year an institution must submit a Fiscal Operation Report (FISAP). The institution shall ensure that the information reported is accurate and should have sufficient internal controls to prevent, identify and correct amounts incorrectly reported on the FISAP. Condition - Numerous line items related to the Federal Perkins Loan Program were incorrectly reported on the FISAP. Cause - The internal controls over the review of the FISAP was not effective at preventing or detecting and correcting noncompliance with the reporting requirements. Effect - Incorrect data could be reported to the Department of Education. Questioned Costs - Not Applicable. Context - Numerous line items on the FISAP did not match internal records. Line items were subsequently corrected after errors were noted. Identification as a Repeat Finding - Not Applicable. Recommendation - The individual responsible for reviewing the FISAP information compared to the external servicer reports should receive appropriate training on source documents and requirements. Views of Responsible Official - Management concurs with the finding and is providing those responsible for compliance with appropriate education on the compliance requirements. The College is reviewing the processes and controls and will make changes as necessary to prevent and/or detect and correct noncompliance on a timely basis.

Enrollment Reporting Type of Finding - Material noncompliance with Enrollment Reporting compliance requirement and material weakness in internal control over compliance Program: Student Financial Assistance Cluster Assistance Listing Number: Federal Pell Grants 84.063, Federal Direct Loans 84.268 Federal Agency: U.S. Department of Education Criteria - 34 CFR 690.83(b)(2) and 34 CFR 685.309 provide regulations to institutions for the accurate and timely reporting of student enrollment information. Institutions must review, update, and verify student enrollment statuses, program information, and effective dates to the Department of Education. The institution should have sufficient internal controls over program compliance to report information accurately and timely. Condition - Two students were found to have a status change effective date reported to the Department of Education that was not compliant with enrollment reporting guidelines. Cause - The College’s system does not always report status changes correctly and the status report requires a review prior to submission. The internal controls over the review of student status changes were not effective at preventing or detecting and correcting noncompliance with the requirements. Effect - The status changes were reported incorrectly and/or untimely to the Department of Education. Questioned Costs - Not applicable. Context - Out of our sample of 40 students with status changes, two students were found to have status changes reported that were not compliant with the enrollment reporting requirements. Identification as a Repeat Finding - A similar finding was identified in the audit for the year ending June 30, 2023 as finding 2023-001. Recommendation - The individuals responsible for identifying and reviewing effective status change dates need to be educated on the requirements. Views of Responsible Official - Management concurs with the finding and is providing those responsible for compliance with appropriate education on the compliance requirements. The College is reviewing the processes and controls and will make changes as necessary to prevent and/or detect and correct noncompliance on a timely basis.

Eligibility Type of Finding - Noncompliance with Eligibility compliance requirement and significant deficiency in internal control over compliance Program: Student Financial Assistance Cluster Assistance Listing Number: Federal Supplemental Educational Opportunity Grant (FSEOG) 84.007 Federal Agency: U.S. Department of Education Criteria - 34 CFR 676.10 and 676.20 provide regulations to institutions on minimum and maximum amount of Federal Supplemental Education Opportunity Grant (FSEOG) amounts that can be awarded. The institution should have sufficient internal controls over program compliance to prevent, identify and correct grant amounts awarded incorrectly. Condition - One error was identified when testing the amount awarded for Federal Supplemental Education Opportunity Grant (FSEOG). One student was awarded $68 in FSEOG funds when the minimum amount to be awarded is $100. This resulted in an under-award of $32. Cause - The internal controls over the review of awarded assistance was not effective at preventing or detecting and correcting noncompliance with the requirements. Effect - Incorrect award amounts could go undetected resulting in an under- or over-award of student financial assistance. Questioned Costs - The one error identified within our forty-item sample resulted in an under-award of $32 for an FSEOG recipient. Context - One student was under-awarded aid out of a sample of 40 students. Identification as a Repeat Finding - Not Applicable. Recommendation - The College needs to ensure the reconciliation of the amounts awarded in the College’s system to the eligible award per the Department of Education is being performed by an individual with appropriate knowledge of award compliance requirements. Views of Responsible Official - Management concurs with the finding and is providing those responsible for compliance with appropriate education on the compliance requirements. The College is reviewing the processes and controls and will make changes as necessary to prevent and/or detect and correct noncompliance on a timely basis.

Reporting Type of Finding - Noncompliance with Reporting compliance requirement and significant deficiency in internal control over compliance Program: Student Financial Assistance Cluster Assistance Listing Number: Federal Perkins Loan 84.038 Federal Agency: U.S. Department of Education Criteria - 34 CFR 674.19 provided regulation to institutions on reporting of Federal Perkins Loan. Each year an institution must submit a Fiscal Operation Report (FISAP). The institution shall ensure that the information reported is accurate and should have sufficient internal controls to prevent, identify and correct amounts incorrectly reported on the FISAP. Condition - Numerous line items related to the Federal Perkins Loan Program were incorrectly reported on the FISAP. Cause - The internal controls over the review of the FISAP was not effective at preventing or detecting and correcting noncompliance with the reporting requirements. Effect - Incorrect data could be reported to the Department of Education. Questioned Costs - Not Applicable. Context - Numerous line items on the FISAP did not match internal records. Line items were subsequently corrected after errors were noted. Identification as a Repeat Finding - Not Applicable. Recommendation - The individual responsible for reviewing the FISAP information compared to the external servicer reports should receive appropriate training on source documents and requirements. Views of Responsible Official - Management concurs with the finding and is providing those responsible for compliance with appropriate education on the compliance requirements. The College is reviewing the processes and controls and will make changes as necessary to prevent and/or detect and correct noncompliance on a timely basis.