Audit Finding Reference Number 2024 – 014 – Fiscal Operations Report and Application to Participate (FISAP) Federal Program and Specific Federal Award Identification ALN Title and Number 84.007 Federal Supplemental Educational Opportunity Grant (FSEOG) 84.003 Federal Work-Study Program (FWS) Federal Award Year June 30, 2024 Federal Agencies U. S. Department of Education Pass-Through Entity Not applicable Criteria OMB 2 CFR Part 200, Subpart F, Compliance Supplement, Part 5 – Student Financial Assistance Programs, Financial Reporting, and 34 CFR §673.3 requires institutions participating in the Campus-Based Programs to prepare and submit the Fiscal Operations Report and Application to Participate (FISAP) in accordance with the requirements established by the U.S. Department of Education. Institutions are responsible for maintaining complete and accurate records supporting the information reported on the FISAP and must retain documentation sufficient to demonstrate the accuracy, completeness, and validity of the reported information. Conditions and Context During my audit, ABC did not provide supporting documentation to substantiate information reported on the Fiscal Operations Report and Application to Participate (FISAP). Specifically, the following supporting documentation was not provided for audit review: • Evidence supporting the submission of the FISAP. • Part II (Application), Section D, Line 7 – Total number of students for schools with a traditional calendar. • Part II (Application), Section D, Lines 9–20 – Total number of students for schools with a non-traditional calendar. • Part II (Application), Section E, Line 22 – Total tuition and fees. • Part II (Application), Section E, Line 23 – Total Federal Pell Grant expenditures. • Part II (Application), Section F, Lines 25–39 – Information on eligible aid applicants. • Part III (Perkins), Section A, Line 1.1 – Cash on hand and in depository. • Part IV (FSEOG), Section C, Lines 12–14 – Funds to FSEOG recipients. • Part V (FWS), Section C, Lines 12–14 – Total compensation for Federal Work-Study students. As a result, I was unable to determine whether the information reported on the FISAP was complete, accurate, and supported by the institution's records. Cause ABC did not establish and implement adequate internal controls to ensure documentation supporting the information reported on the FISAP was maintained and readily available for audit. Specifically, management did not maintain sufficient supporting records or implement procedures to retain documentation substantiating amounts and information reported on the FISAP. Questioned Cost For purposes of this condition, I do not have any questioned costs. Effect As a result of these deficiencies, ABC was unable to demonstrate that the information reported on the FISAP was complete, accurate, and prepared in accordance with federal requirements. Without adequate supporting documentation, the institution cannot substantiate information reported to the U.S. Department of Education, increasing the risk of inaccurate financial reporting and noncompliance with federal reporting requirements. Repeat Finding No. Recommendation I recommend that ABC strengthen its internal controls over the preparation and retention of documentation supporting the Fiscal Operations Report and Application to Participate (FISAP). Management should implement procedures to maintain complete supporting documentation for all amounts and information reported on the FISAP, reconcile reported information to the institution's financial aid, student information, and accounting records, retain evidence of the completed FISAP submission, and require supervisory review of the supporting documentation prior to submission of the report. Management Response The Institution concurs with this finding. With new leadership and processes, Arkansas Baptist College will continue to enhance and strengthen its internal controls over the preparation and retention of documentation supporting the Fiscal Operations Report and Application to Participate (FISAP). Leadership will continue to make changes to implement stronger procedures to maintain complete supporting documentation for all amounts and information reported on the FISAP, reconcile reported information to the institution's financial aid, student information, and accounting records, retain evidence of the completed FISAP submission, and require supervisory review of the supporting documentation prior to submission of the report.