Finding 371211 (2023-003)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-02-29

AI Summary

  • Core Issue: The College's FISAP report had discrepancies in the Perkins loan section due to ineffective internal controls.
  • Impacted Requirements: The College must ensure accurate reporting of Perkins loan information to comply with Title IV regulations.
  • Recommended Follow-Up: Review and improve reporting procedures; finalize reconciliation with the new servicer and submit corrections to the FISAP.

Finding Text

Criteria: The College is required to submit ED Form 646-1, Fiscal Operations Report and Application to Participate (FISAP) (OMB No. 1845-0030) – This electronic report is submitted annually to receive funds for the campus-based programs. The institution uses the Fiscal Operations Report portion to report its expenditures in the previous award year and the Application to Participate portion to apply for the following year. By October 1, 2022, the institution should submit its FISAP that includes the Fiscal Operations Report for the award year 2021–2022 and the Application to Participate for the 2022–2023 award year (FWS, FSEOG 34 CFR 673.3; Fiscal Operations Report and Application to Participate Instructions). Condition: Part III, Fiscal Operations Report, lines 1.1 through 5.1 related to the Perkins loan program did not tie to the underlying support provided by the College. Cause: The College received multiple versions of reports from their third-party Perkins loan servicer related to the information used to prepare the Perkins loan section of the annual FISAP report. The College's internal controls were not effective in identifying errors in the reporting on the FISAP on a timely basis. Effect: The College may have reported incorrect Perkins loan information on the FISAP report submitted to the Department of Education. Questioned Costs: Not applicable Recommendation: It is recommended that the College review procedures in place to ensure accurate reporting of Perkins loan information to comply with Title IV regulations. Management's Response: The College is changing Perkins servicers to help ensure accurate reporting in the future. The third-party service provider was unable to send accurate reports to the college during 2023. The College has terminated its relationship with the previous service provider effective 1/31/2024 and is conducting a final reconciliation with the new agency. Once the final reconciliation has been completed, the college will submit official corrections to the FISAP with the Department of Education. This should enable the college to provide accurate and timely reporting going forward.

Corrective Action Plan

Corrective Action Planned: The third-party service provider was unable to send accurate reports to the college during FY23. The college has terminated its relationship with the previous service provider effective 1/31/2024 and is conducting a final reconciliation with the new agency. Once the final reconciliation has been completed, the college will submit official corrections to the FISAP with the Department of Education. This should enable the college to provide accurate and timely reporting going forward. Name(s) of Contact Person(s) Responsible for Corrective Action: Miguel Granger, Director of Student Accounts and Brian Braden, Controller. Anticipated Completion Date: March 15, 2024

Categories

Student Financial Aid Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 371212 2023-004
    Significant Deficiency
  • 371213 2023-005
    Significant Deficiency
  • 947653 2023-003
    Significant Deficiency
  • 947654 2023-004
    Significant Deficiency
  • 947655 2023-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $5.73M
84.063 Federal Pell Grant Program $1.41M
84.038 Federal Perkins Loan Program $483,318
84.007 Federal Supplemental Educational Opportunity Grants $58,605
84.033 Federal Work-Study Program $48,313