Finding 372675 (2023-004)

Criteria 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. Key Line Items – The following line items contain critical information: Part I, Identifying Information, Certification, and Warning Part II, Application to Participate • Information on enrollment • Assessments and expendituresInformation on eligible aid applicants Part III, Fiscal Operations Report • All sections Part IV, Fiscal Operations Report Federal Supplemental Educational Opportunity Grant (FSEOG) Program • All sections Part V, Fiscal Operations Report Federal Work-Study (FWS) Program • All sections Part VI, Program Summary for Award Year • Distribution of Program Recipients and Expenditures by Type of Student Title 2 U.S. Code of Federal Regulations Part 200 (2CFR 200) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, section 303(a) states, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statues, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition During our testwork over the FISAP for the 2022/2023 award year, certain key information as required in Part III, Fiscal Operations Report Section E was omitted. In addition, there was no documentation that the FISAP was reviewed by someone other than the preparer of the report prior to the report being filed with the U.S. Department of Education. Cause The condition resulted from an insufficient review of the report by someone other than the preparer of the report prior to the report being filed with the U.S. Department of Education. Possible Asserted Effect Failure to file accurate and complete information in accordance with federal requirements and implement sufficient internal controls resulted in the College’s FISAP for the 2022/2023 award year being noncompliant with Federal statutes, regulations and the terms and conditions of the awards. Questioned Costs None. Statistical Sampling The sample was not intended to be, and was not, a statistically valid sample. Identification of Whether the Audit Finding was a Repeat Finding This is not a repeat finding. Recommendation We recommend the College review and enhance its process related to the preparation and review of the FISAP to ensure that it is completely and accurately prepared prior to the report being filed with the U.S. Department of Education.