FAC Explorer

Finding 370175 (2023-002)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-02-22
Audit: 291731
Organization: Clarke University of Dubuque, Iowa (IA)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: The University inaccurately reported financial data in the FISAP for the Federal Perkins Loan Program, leading to a significant deficiency in internal controls.
  • Impacted Requirements: Compliance with 34 CFR 673.3 is compromised due to incorrect reporting in key sections of the FISAP.
  • Recommended Follow-Up: Implement a thorough review process for FISAP submissions, ensuring independent verification of reported figures to enhance accuracy.

Finding Text

Student Financial Assistance Program Cluster – Department of Education Federal Financial Assistance Listing #84.038 Federal Perkins Loan Program Federal Financial Assistance Listing #84.033 Work‐Study Program ‐ 2022/2023 P063P201430 Reporting Significant Deficiency in Internal Control over Compliance Criteria: 34 CFR 673.3 requires institutions complete the Fiscal Operations Report and Application to Participate (FISAP) to participate in the Federal Perkins Loan Program. The Fiscal Operations Report includes the University’s financial information from the previous award year. Condition: Certain amounts within the FISAP filed during fiscal year 2022 FISAP were reported incorrectly in Part III, Section B, Line 13 and in Part VI, Section A, Lines 1‐23, columns e and f. Cause: The University recorded the first line noted above as the cumulative total instead of only the amount that related to the year ended May 31, 2022. The federal work‐study numbers included other student workers paid with nonfederal funds. Effect: Information reported on the FISAP was incorrect. Questioned Costs: None Context/Sampling: Key line items within the FISAP report were tested as required by the OMB Compliance Supplement. No statistical sampling was performed. Repeat Finding from Prior Years: Yes Recommendation: The University should review current processes to ensure that line items reported are accurate. The FISAP review process should include a detail review by an individual independent from the preparer to verify the numbers reported. Views of Responsible Officials: Management agrees. Management’s complete response can be found in the separately issued corrective action plan.

Corrective Action Plan

Student Financial Assistance Program Cluster – Department of Education Federal Financial Assistance Listing #84.038 Federal Perkins Loan Program & #84.033 Work-Study Program 2022/2023 P063P201430 - 2021/2022 Finding Summary: Certain amounts within the FISAP filed during fiscal year 2022 FISAP were reported incorrectly in Part III, Section B, Line 13 and in Part VI, Section A, Lines 1-23 columns e & f. Responsible Individuals: Robert Hoover, Director of Financial Aid and Deb Theill, Student Accounts Loan Coordinator Corrective Action Plan: The Financial Aid and Loan offices will obtain review from a non preparer of the FISAP report before submittal. Anticipated Completion Date: Tami Lansing did an initial review on 10/16/2023, another review will also be performed before May 1, 2024.

Categories

Student Financial Aid Matching / Level of Effort / Earmarking Reporting Significant Deficiency

Other Findings in this Audit

  • 370176 2023-002
    Significant Deficiency
  • 370177 2023-003
    Material Weakness Repeat
  • 370178 2023-003
    Material Weakness Repeat
  • 370179 2023-003
    Material Weakness
  • 370180 2023-004
    Significant Deficiency
  • 370181 2023-004
    Significant Deficiency
  • 370182 2023-004
    Significant Deficiency
  • 370183 2023-005
    Significant Deficiency Repeat
  • 370184 2023-005
    Significant Deficiency Repeat
  • 370185 2023-005
    Significant Deficiency Repeat
  • 370186 2023-006
    Significant Deficiency
  • 946617 2023-002
    Significant Deficiency Repeat
  • 946618 2023-002
    Significant Deficiency
  • 946619 2023-003
    Material Weakness Repeat
  • 946620 2023-003
    Material Weakness Repeat
  • 946621 2023-003
    Material Weakness
  • 946622 2023-004
    Significant Deficiency
  • 946623 2023-004
    Significant Deficiency
  • 946624 2023-004
    Significant Deficiency
  • 946625 2023-005
    Significant Deficiency Repeat
  • 946626 2023-005
    Significant Deficiency Repeat
  • 946627 2023-005
    Significant Deficiency Repeat
  • 946628 2023-006
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $3.09M
84.063 Federal Pell Grant Program $1.50M
84.031 Higher Education_institutional Aid $834,152
84.038 Federal Perkins Loan Program $435,196
93.264 Nurse Faculty Loan Program (nflp) $273,927
93.364 Nursing Student Loans $261,461
84.007 Federal Supplemental Educational Opportunity Grants $141,948
97.067 Homeland Security Grant Program $118,590
84.033 Federal Work-Study Program $108,266
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $18,779
84.425 Education Stabilization Fund $5,000