Finding 1191467 (2025-003)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-03-27
Audit: 395393
Organization: Montcalm Community College (MI)

AI Summary

  • Core Issue: The College failed to provide support for a key line item in the FISAP, indicating a lack of accurate reporting.
  • Impacted Requirements: This finding highlights noncompliance with 34 CFR 675.19(b)(3), which mandates accurate FISAP submissions.
  • Recommended Follow-Up: The College should enhance its policies and procedures for FISAP reporting to ensure compliance and accuracy.

Finding Text

Fiscal Operations Report and Application to Participate (FISAP) Reporting (repeat finding) Finding Type. Immaterial Noncompliance/Significant Deficiency in Internal Control over Compliance (Reporting). Programs. Student Financial Assistance Cluster; U.S. Department of Education; Assistance Listing Numbers 84.007, 84.033, 84.063, and 84.268; Award Numbers P007A242049, P033A242049, P063P241644, P063Q241644 and P268K251644. Criteria. The Code of Federal Regulations, 34 CFR 675.19(b)(3) states that accurate information be populated and submitted on the Fiscal Operations Report and Application to Participate (FISAP). Condition. It was noted during our testing of the FISAP that the College did not have support for one of the eight key line items (information on eligible aid applicants) identified in the compliance supplement as critical information. Cause. The College does not have policies and procedures in place to ensure information reported on the FISAP was accurate. Effect. As a result, the College is not in compliance with the Department of Education requirements that state the FISAP must be accurately reporting information. Questioned Costs. No costs were required to be questioned as a result of this finding inasmuch as our testing did not reveal any unallowed costs. Recommendation. We recommend the College review their policies and procedures surrounding FISAP reporting. View of Responsible Officials. Management agrees with this finding and has prepared a Corrective Action Plan.

Corrective Action Plan

Fiscal Operations Report and Application to Participate (FISAP) Reporting Auditor Description of Condition and Effect. It was noted during our testing of the FISAP that the College did not have support for one of the eight key line items (information on eligible aid applicants) identified in the compliance supplement as critical information. As a result, the College is not in compliance with the Department of Education requirements that state the FISAP must be accurately reporting information. Auditor Recommendation. We recommend the College review their policies and procedures surrounding FISAP reporting. Corrective Action. The College is improving its documentation and retention processes to ensure all information used in preparing the annual FISAP report is fully supported and available for review. Moving forward, all data underlying the eight key line items identified in the compliance supplement will be saved, documented, and stored in a consistent and accessible manner. Information obtained from other departments will be retained in its original format, and any data extracted from PowerFAIDS or related systems will be saved at the time of report preparation. By implementing these documentation and retention procedures as standard operating practice, the College ensures FISAP submissions are accurate, verifiable, and compliant with federal audit requirements. Responsible Person. Jennifer Stimson, Director of Financial Aid Anticipated Completion Date. June 30, 2026

Categories

Student Financial Aid Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1191458 2025-002
    Material Weakness Repeat
  • 1191459 2025-002
    Material Weakness Repeat
  • 1191460 2025-002
    Material Weakness Repeat
  • 1191461 2025-002
    Material Weakness Repeat
  • 1191462 2025-002
    Material Weakness Repeat
  • 1191463 2025-003
    Material Weakness Repeat
  • 1191464 2025-003
    Material Weakness Repeat
  • 1191465 2025-003
    Material Weakness Repeat
  • 1191466 2025-003
    Material Weakness Repeat
  • 1191468 2025-004
    Material Weakness Repeat
  • 1191469 2025-004
    Material Weakness Repeat
  • 1191470 2025-004
    Material Weakness Repeat
  • 1191471 2025-004
    Material Weakness Repeat
  • 1191472 2025-004
    Material Weakness Repeat
  • 1191473 2025-005
    Material Weakness Repeat
  • 1191474 2025-005
    Material Weakness Repeat
  • 1191475 2025-005
    Material Weakness Repeat
  • 1191476 2025-005
    Material Weakness Repeat
  • 1191477 2025-005
    Material Weakness Repeat
  • 1191478 2025-006
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $943,515
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $265,248
17.268 H-1B JOB TRAINING GRANTS $123,598
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $114,209
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $61,793
84.033 FEDERAL WORK-STUDY PROGRAM $29,396
84.063 FEDERAL PELL GRANT PROGRAM $3,405