Finding 1214262 (2025-101)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-05-08

AI Summary

  • Core Issue: The FISAP report contains significant discrepancies between reported amounts and actual accounting records, indicating a lack of accurate reporting.
  • Impacted Requirements: Compliance with the annual reporting requirement for the student financial assistance cluster is not met, as the reported figures do not align with underlying records.
  • Recommended Follow-Up: Implement robust policies and procedures to ensure accurate reporting on the FISAP and address year-end adjustments before submission.

Finding Text

Finding 2025-101 Reporting (Significant Deficiency, Compliance Finding) Assistance Listings Number: 84.007, 84.033, 84.063 & 84.268 Cluster Title: Student Financial Assistance Cluster Program Titles: Federal Supplemental Educational Opportunity Grants, Federal Work-Study Program, Federal Pell Grant Program and Federal Direct Student Loans Federal Agency: U.S. Department of Education Award Year: 2025 Award Number: None Compliance Requirement: Reporting Question Costs: None Criteria: The student financial assistance cluster requires that the college submit the Fiscal Operations Report and Application to Participate (FISAP) annually. The amounts reported on the FISAP should agree to the underlying accounting records. Condition: Total tuition and fees as reported in the FISAP report was $10,843,372 while the district’s underlying accounting records showed $10,454,289 for a difference of $389,083. Total Federal Pell expenditures were reported as $9,260,936 on the FISAP report while the underlying accounting records and schedule of expenditures of federal awards showed $9,190,309 for a difference of $70,627. This finding is similar to prior-year finding 2024-101. Cause: The District does not have adequate policies and procedures in place to ensure that revenues and expenditures are reported properly on the FISAP. Year-end adjustments were not identified and recorded prior to FISAP reporting. Effect: Information reported by the District on the FISAP was not accurate and is not in compliance with requirements of the grant. Recommendation: 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. District’s Response: The District’s responsible officials’ views and planned corrective action are in its corrective action plan at the end of the report.

Corrective Action Plan

During fiscal year 2025, differences were identified between amounts reported on the Fiscal Operations Report and Application to Participate (FISAP) and the District’s finalized accounting records due to yearend adjustments recorded after submission of the report. The District recognizes the importance of ensuring reported amounts reconcile fully to underlying accounting records and acknowledges that additional coordination between Business Services and Financial Aid is necessary to strengthen reporting accuracy. To address this finding, the District will undertake the following actions: 1. Develop a formal reconciliation process between the general ledger, student financial aid reporting, and FISAP submissions prior to report filing. 2. Establish documented timelines to ensure year-end accounting adjustments are evaluated and incorporated into federal reporting, when applicable. These actions are intended to improve reporting accuracy, strengthen interdepartmental communication, and ensure compliance with federal reporting requirements under the Student Financial Assistance Cluster.

Categories

Student Financial Aid Reporting Significant Deficiency

Other Findings in this Audit

  • 1214259 2025-101
    Material Weakness Repeat
  • 1214260 2025-101
    Material Weakness Repeat
  • 1214261 2025-101
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.063 FEDERAL PELL GRANT PROGRAM $9.19M
84.268 FEDERAL DIRECT STUDENT LOANS $2.09M
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $270,402
84.033 FEDERAL WORK-STUDY PROGRAM $199,873
59.037 SMALL BUSINESS DEVELOPMENT CENTERS $142,446