Finding Text
Federal Program Information: Federal Supplemental Educational Opportunity Grants (ALN: 84.007), Federal Work-Study Program (ALN: 84.033), Federal Pell Grant Program (ALN: 84.063), and Federal Direct Student Loans (ALN: 84.268) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): L. Reporting - Fiscal Operations Report and Application to Participate (“FISAP”) - An institution is required to submit the FISAP annually by October 1, following the end of the award year, and to accurately complete all required key line items containing critical information (34 CFR 668.24(e)(1)(i)). The deadline for submitting data corrections was December 15, 2025. Condition: Key line items as identified in the compliance supplement were not accurately reported on the 2024-2025 FISAP. Cause: Insufficient internal controls and lack of sufficient administrative oversight resulted in data errors reported in the FISAP. Effect or Potential Effect¬: The University is not in compliance with special reporting requirements. Questioned Costs: None. Context: The University submitted the annual FISAP for the 2024-2025 reporting year by the required deadline; however, errors included in the submission were not corrected by the required deadline. As of the date of our Single Audit report, these errors remain uncorrected. Identification of Repeat Finding: This is a repeat finding from prior year. This was reported as Finding 2024-006 in the prior year schedule of findings and questioned costs. Recommendation¬¬: We recommend the University enhance its internal controls, policies, and procedures to ensure that the FISAP is completed accurately prior to submission and that adequate supporting schedules are retained to substantiate the reported amounts. Views of Responsible Officials: The University concurs with the findings. Shaw University acknowledges the findings regarding variances between institutional records and the amounts reported on the FISAP, as well as the delay in submitting corrections by the required deadline. The variances were due to insufficient reconciliation between the University’s records and the FISAP prior to submission. In addition, controls were not adequate to ensure that identified discrepancies were corrected within the required timeframe. The University has since completed a full reconciliation of the FISAP, and further corrections will be made. To prevent recurrence, the University has implemented procedures requiring a formal reconciliation of supporting records to the FISAP prior to submission, along with enhanced review and approval controls to ensure accuracy and timely reporting. Management will continue to monitor this process to ensure ongoing compliance.