Finding 1177678 (2024-014)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2026-03-10

AI Summary

  • Core Issue: The College missed the October 1, 2024 deadline for submitting the FISAP report, which is crucial for maintaining eligibility for federal funds.
  • Impacted Requirements: Compliance with 34 C.F.R. § 668.171(e) is necessary to qualify for Title IV campus-based funding.
  • Recommended Follow-up: Ensure staff are trained on reporting deadlines and establish a reminder system to prevent future delays.

Finding Text

2024-014- TIMELY FILING OF THE DISCAL REPORT AND APPLICATION TO PARTICIPATE Federal Agency: U.S. Department of Education Federal Program Title and Assistance Listing Number: Student Financial Assistance Cluster of Programs; Federal Pell Grant Program, 84.063, Federal Direct Student Loans 84.268 Type of Finding: Significant Deficiency in Internal Control over Compliance, Non-compliance Compliance Area: Other - Timely Filing of Fiscal Report Federal Award Year: 2024 Questioned Costs: None Condition The College did not submit its Fiscal Operations Report and Application to Participate (FISAP)report by the specified annual deadline of October 1, 2024. Criteria Per 34 C.F.R. § 668.171(e) and annual ED electronic announcements, institutions must submit their FISAP by the specified date to remain eligible for Title IV campus-based funds. Cause The College was not familiar with the required timing for this report. The June 30, 2024 was the first FISAP reported by the College. For the year ended June 30, 2023, the College’s FISAP information was included in New Mexico State University’s FISAP. Effect Potential loss of all campus-based funding (FSEOG and FWS) for the upcoming award year and a requirement to return any funds already drawn down for the current year.

Corrective Action Plan

Recommendation We recommend the College strengthen controls to ensure future FISAP reports are submitted timely. Management Response Corrective Action To ensure timely submission of the Fiscal Operations Report and Application to Participate (FISAP) in future reporting cycles, the College will implement the following corrective measures: 1) Establish a Regulatory Compliance Calendar a. A centralized compliance calendar will be developed and maintained by the Business Office in coordination with Financial Aid. The calendar will include all federal and state reporting deadlines, including the FISAP, with automated reminders set at 90, 60, and 30 days prior to each deadline. 2) Formal Assignment of Responsibility a. The Director of Financial Aid will be designated as the primary responsible party for preparation and submission of the FISAP. A secondary backup (Controller or Business Office designee) will be assigned to ensure continuity and oversight. 3) Written Procedures Update a. The Financial Aid Procedures Manual will be updated to include documented steps, internal timelines, required data sources, reconciliation processes, and final submission verification procedures for FISAP completion. 4) Supervisory Review and Certification a. Prior to submission, the Vice President for Business and Finance will receive written confirmation of completion and submission to ensure executive level oversight. 5) Cross-Training a. Annual cross training between Financial Aid and Business Office staff will be conducted to strengthen institutional knowledge and reduce dependency on a single individual. Implementation Timeline: Compliance calendar implemented within 30 days Written procedures updated within 60 days Cross training completed prior to next FISAP cycle Executive review process effective immediately Monitoring Timely submission will be verified annually and documented as part of the College’s internal controls review process. Due of Completion: July 1, 2026 Responsible Party(ies) Vice President for Business and Finance, Dean of Student Affairs

Categories

Student Financial Aid

Other Findings in this Audit

  • 1177664 2024-011
    Material Weakness Repeat
  • 1177665 2024-012
    Material Weakness Repeat
  • 1177666 2024-015
    Material Weakness Repeat
  • 1177667 2024-011
    Material Weakness Repeat
  • 1177668 2024-012
    Material Weakness Repeat
  • 1177669 2024-015
    Material Weakness Repeat
  • 1177670 2024-011
    Material Weakness Repeat
  • 1177671 2024-012
    Material Weakness Repeat
  • 1177672 2024-015
    Material Weakness Repeat
  • 1177673 2024-011
    Material Weakness Repeat
  • 1177674 2024-012
    Material Weakness Repeat
  • 1177675 2024-015
    Material Weakness Repeat
  • 1177676 2024-014
    Material Weakness Repeat
  • 1177677 2024-015
    Material Weakness Repeat
  • 1177679 2024-015
    Material Weakness Repeat
  • 1177680 2024-015
    Material Weakness Repeat
  • 1177681 2024-013
    Material Weakness Repeat
  • 1177682 2024-015
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.031 HIGHER EDUCATION INSTITUTIONAL AID $1.01M
84.063 FEDERAL PELL GRANT PROGRAM $830,018
81.104 ENVIRONMENTAL REMEDIATION AND WASTE PROCESSING AND DISPOSAL $555,833
84.268 FEDERAL DIRECT STUDENT LOANS $145,293
84.002A ADULT EDUCATION - BASIC GRANTS TO STATES $90,960