Finding 12596 (2022-001)

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Requirement
L
Questioned Costs
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Year
2022
Accepted
2023-03-17

AI Summary

  • Core Issue: The Academy submitted incorrect information in the FISAP, failing to report key financial aid data accurately.
  • Impacted Requirements: Annual submission of the FISAP is mandatory for funding; incomplete sections led to non-compliance.
  • Recommended Follow-Up: Establish monthly reconciliations between financial aid and accounting systems to ensure accuracy, especially during staff changes.

Finding Text

SECTION III Federal Award Findings and Questioned Costs Finding 2022-001: Special Reporting Federal Program: Student Financial Aid Cluster Federal Agency: Department of Education CFDA Number: 84.007, 84.063, 84.268, 84.033 Criteria: The Academy is required to submit the Fiscal Operations Report and Application to Participate(FISAP) annually to receive funds for the campus-based programs. Condition: The Academy incorrectly reported the Federal Supplemental Educational Opportunity Grant, Federal Work Study awards and information on enrollment in the FISAP submitted to the Department of Education. Additionally, several required sections of the FISAP were not completed. Questioned Costs: None Cause: During the current fiscal year, the financial aid office had turnover of key employees responsible for preparing the reports used to generate FISAP reporting. As noted below, procedures are being established to comply with the reporting requirements going forward. Effect: The Academy did not operate in accordance with the special reporting compliance requirement. Perspective Information: We consider the audit finding to be an isolated instance. The Academy has a strong history of compliance with the reporting requirements of the Student Financial Aid Cluster of programs. Identification of Repeat Findings: This is not a repeat finding. Recommendation: The Academy should develop procedures to have the financial aid and financial accounting information systems reconciled on a monthly basis. These reconciliation will ensure accurate reporting during periods of turnover of key personnel. Views of Responsible Officials and Planned Corrective Actions: We agree with the finding. As of January 2023, we have incorporated and communicated the updates to our policy and procedures to ensure both information systems are reconciled monthly, as well as maintaining appropriate documentation as assigned to both the Finance Department and the Financial Aid Manager.

Corrective Action Plan

Federal Award Findings and Questioned Costs Finding 2022-01: Special Reporting Federal Program: Student Financial Aid Cluster Federal Agency: Department of Education CFDA Number: 84.007, 84.063, 84.268, 84.033 Views of Responsible Officials and Planned Corrective Actions: We agree with the finding. As of January 2023, we have incorporated and communicated the updates to our policy and procedures to ensure both information systems are reconciled monthly, as well as maintaining appropriate documentation as assigned to both the Finance Department and the Financial Aid Manager.

Categories

Student Financial Aid Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $1.67M
84.425 Education Stabilization Fund $288,642
84.063 Federal Pell Grant Program $202,825
84.033 Federal Work-Study Program $44,381
84.007 Federal Supplemental Educational Opportunity Grants $13,125
45.301 Museums for America $12,000
45.024 Promotion of the Arts_grants to Organizations and Individuals $12,000