Finding 1182785 (2025-006)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-03-25
Audit: 394160
Organization: Missouri Valley College (MO)

AI Summary

  • Core Issue: The College's FISAP reporting for Title IV programs showed discrepancies between reported expenditures and actual drawdowns.
  • Impacted Requirements: FISAP instructions require reported expenditures to match current year drawdowns or actual expenditures.
  • Recommended Follow-Up: Establish formal reconciliation policies and procedures to ensure accurate reporting and compliance.

Finding Text

Finding 2025-006: Policies and Procedures Related to Reporting (significant deficiency) Statement of Condition: During our testing of the College’s Fiscal Operations Report and Application to Participate (FISAP), we noted that total expenditures reported on the FISAP for certain Title IV programs did not agree to the related current year drawdowns per the U.S. Department of Education’s G5 system or total actual expenditures for the fiscal year. Differences were identified for the Federal Pell Grant, FSEOG, and Federal Work-Study programs. Criteria: In accordance with the FISAP instructions, depending on the program, total expenditures reported for applicable Title IV programs should agree to the current year drawdowns recorded in the G5 system or total actual expenditures for the program. Effect of the Condition: We found three Title IV programs where the total expenditures reported in the FISAP did not agree to the U.S. Department of Education’s G5 system or actual total expenditures. Accurate reporting is important as the FISAP data drives campus-based allocations and is used by the Department of Education for oversight. Cause of Condition: The College does not have a formal reconciliation and review process for the FISAP. Recommendation: We recommend the College develop reconciliation policies and procedures to address this issue. Management’s Response: Management agrees and will submit a Corrective Action Plan to implement these recommendations immediately.

Corrective Action Plan

Finding Number: 2025-006 Title: Policies and Procedures Related to Reporting To rectify these discrepancies, the College will implement a reconciliation and review process for the FISAP. The Chief Financial Officer (CFO) will review the FISAP to ensure that all reporting accurately reflects the current fiscal year’s totals in relation to drawdowns and expenditures. Specifically, it has been noted that the FISAP had incorrectly listed totals from the previous year rather than the accurate amounts recorded in the General Ledger (GL) and Common Origination and Disbursement (COD) system. This oversight will be addressed through the establishment of a detailed CFO review. A standardized procedure to reconcile the FISAP data with the drawdowns recorded in the G5 system and the actual expenditures will be created. This procedure will involve a systematic review of all financial aid programs, ensuring consistency and accuracy before submission of the FISAP. By enacting this corrective action plan, the College aims to ensure that its reporting practices meet federal guidelines and maintain the integrity of its financial aid programs. Management is committed to these actions and will ensure their timely and effective execution. Anticipated Completion Date: March 31, 2026

Categories

Student Financial Aid

Other Findings in this Audit

  • 1182768 2025-004
    Material Weakness Repeat
  • 1182769 2025-004
    Material Weakness Repeat
  • 1182770 2025-004
    Material Weakness Repeat
  • 1182771 2025-004
    Material Weakness Repeat
  • 1182772 2025-004
    Material Weakness Repeat
  • 1182773 2025-004
    Material Weakness Repeat
  • 1182774 2025-005
    Material Weakness Repeat
  • 1182775 2025-005
    Material Weakness Repeat
  • 1182776 2025-005
    Material Weakness Repeat
  • 1182777 2025-005
    Material Weakness Repeat
  • 1182778 2025-005
    Material Weakness Repeat
  • 1182779 2025-005
    Material Weakness Repeat
  • 1182780 2025-006
    Material Weakness Repeat
  • 1182781 2025-006
    Material Weakness Repeat
  • 1182782 2025-006
    Material Weakness Repeat
  • 1182783 2025-006
    Material Weakness Repeat
  • 1182784 2025-006
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $6.45M
84.063 FEDERAL PELL GRANT PROGRAM $3.98M
14.251 ECONOMIC DEVELOPMENT INITIATIVE, COMMUNITY PROJECT FUNDING, AND MISCELLANEOUS GRANTS $774,562
84.116 FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDUCATION $635,097
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $117,999
10.351 CONGRESSIONAL DIRECTIVES $100,000
84.033 FEDERAL WORK-STUDY PROGRAM $83,737
84.379 TEACHER EDUCATION ASSISTANCE FOR COLLEGE AND HIGHER EDUCATION GRANTS (TEACH GRANTS) $32,558