Finding 1169662 (2025-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-01-20

AI Summary

  • Core Issue: The College reported incorrect tuition and fees for the 2023-24 award year in the Fiscal Operations Report, leading to potential noncompliance with federal requirements.
  • Impacted Requirements: Compliance with 34 CFR 675.19(b)(3) and 676.19(b)(3) mandates accurate reporting of financial data to avoid penalties and incorrect federal funding calculations.
  • Recommended Follow-Up: Implement a robust review system for the FISAP to ensure accurate reporting and compliance with federal guidelines.

Finding Text

2025-001: Student Financial Aid Cluster - Reporting (Significant Deficiency; Noncompliance) Criteria: Per 34 CFR 675.19(b)(3) and 676.19(b)(3), each year an institution shall submit a Fiscal Operations Report plus other information the Secretary requires. The institution shall ensure that the information reported is accurate and shall submit it on the form and at the time specified by the Secretary. Per the Fiscal Operations Report for the 2023-24 and Application to Participate for 2025-26 Instructions for Part II (Application) Section E, the tuition and fees revenue entered must only be for those students reported in Section D. Condition/context: Tuition and fees for the award year July 1, 2023 to June 30, 2024 reported under Part II (Application) Section E of the Fiscal Operations Report and Application to Participate (FISAP) was incorrectly reported as $11,024,548. The correct amount was $10,380,652. Cause: Human error. Effect: If the College fails to comply with the terms and conditions of a Federal award, the Federal awarding agency may impose additional conditions, as described in 2 CFR 200.208, or implement other remedies for noncompliance, as described in 2 CFR 200.339. Additionally, incorrect reporting in the FISAP may result in incorrect award calculations by the Department of Education. The College may be required to return funds to which it is not entitled. Questioned costs: None. Identification as a repeat finding: No. Recommendation: The College should develop, implement, and maintains a thorough system of review of the FISAP to ensure that accurate information is reported. Views of responsible officials and planned corrective actions: Management concurs with the finding. See Exhibit I.

Corrective Action Plan

2025-001 Student Financial Aid Cluster- Reporting Anticipated completion date: Done Contact person: Nola Rocha Corrective actions: The incorrect inclusion of non-credit course data for new programs in the annual FISAP report resulted from a misinterpretation of reporting criteria. This isolated error affected one reporting element within an otherwise accurate submission. The issue was promptly addressed through clarification of FISAP guidance, staff retraining, and updates to procedural documentation and review checklists to ensure non-credit course activity is properly excluded in future reports. While the dollar amount could be viewed as measurable the financial reporting would not result in any financial impact, as the Department of Education allocates Campus-Based Program funds based on institutional requests and does not provide allocations in excess of those requests.

Categories

Student Financial Aid Reporting Significant Deficiency

Other Findings in this Audit

  • 1169661 2025-001
    Material Weakness Repeat
  • 1169663 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.063 FEDERAL PELL GRANT PROGRAM $7.23M
84.268 FEDERAL DIRECT STUDENT LOANS $4.85M
84.334 GAINING EARLY AWARENESS AND READINESS FOR UNDERGRADUATE PROGRAMS $378,753
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $307,084
84.425 EDUCATION STABILIZATION FUND $166,754
93.859 BIOMEDICAL RESEARCH AND RESEARCH TRAINING $161,941
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $160,000
47.076 EDUCATION AND HUMAN RESOURCES $97,539
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $43,934
10.664 COOPERATIVE FORESTRY ASSISTANCE $38,580
84.033 FEDERAL WORK-STUDY PROGRAM $33,517
17.259 WIA YOUTH ACTIVITIES $18,811
84.002 ADULT EDUCATION - BASIC GRANTS TO STATES $17,280
20.200 HIGHWAY RESEARCH AND DEVELOPMENT PROGRAM $4,010