Finding 1094106 (2024-003)

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.