Finding 1171342 (2025-001)

2025-001: REPORTING Program: Federal Supplemental Educational Opportunity Grants, Federal Pell Grant Program, Federal Direct Student Loans Cluster Title: Student Financial Assistance Cluster Federal Assistance Listing Numbers: 84.007, 84.063, and 84.268 Federal Agency: U.S. Department of Education Type of Finding: Noncompliance (Other Matter), significant deficiency in internal control Compliance Requirement: L. Reporting Questioned Costs: N/A Repeat Finding: No Condition/Context: Total tuition and fees as reported in the FISAP report was $3,228,909 while the District’s underlying accounting records showed $2,883,823, for a difference of $345,086. Total Federal Pell grant expenditures were reported as $362,929 on the FISAP report while the underlying accounting records and schedule of expenditures of federal awards showed $408,614, for a difference of $45,685. Criteria: The Student Financial Assistance cluster requires that the District submit the Fiscal Operations Report and Application to Participate (FISAP) annually. The amount should agree to the underlying accounting records. Cause: The District did not have adequate policies and procedures in place to ensure that revenues and expenditures are reported properly. Effect: Information reported by the District was not accurate and is not in compliance with requirements of the grant. Recommendation: We recommend the District should establish policies and procedures to ensure that the amounts reported on the FISAP are accurate and agree to the underlying accounting records. View of Responsible Officials: The District concurs with this recommendation and will review its procedures over reporting to ensure amounts reported agree to the underlying records and data.