Finding 385105 (2023-006)

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Requirement
L
Questioned Costs
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Year
2023
Accepted
2024-03-27
Audit: 298219
Auditor: Sikich LLP

AI Summary

  • Core Issue: The College inaccurately reported financial data on the FISAP for the award year July 1, 2021, to June 30, 2022, missing significant amounts for state grants and Federal Work Study.
  • Impacted Requirements: This finding violates 34 CFR 668.24 (e)(1)(i), which mandates accurate record-keeping and reporting for federal aid programs.
  • Recommended Follow-Up: The College should establish procedures to ensure accurate reporting on the FISAP that aligns with retained documentation to avoid future compliance issues.

Finding Text

Criteria: 34 CFR 668.24 (e)(1)(i) states “(1) An institution shall keep records relating to its administration of the Federal Perkins Loan, FWS, FSEOG, Federal Pell Grant, ACG, National SMART Grant, or TEACH Grant Program for three years after the end of the award year for which the aid was awarded and disbursed under those program, provided an institution shall keep- “(i) The Fiscal Operations Report and Application to Participate in the Federal Perkins Loan, FSEOG, and FWS Programs (FISAP), and any records necessary to support the data contained in the FISAP, including “income grid information” for three years after the end of the award year in which the FISAP is submitted.” Condition: The College did not accurately report amounts that agree to supporting documentation retained for the FISAP Report Award Year July 1, 2021, through June 30,2022. The College did not report any amount for Part II total expended state grants and scholarships made to undergraduates for the award year July 1, 2021, to June 30,2022. Per their records this amount should have been $990,483. The College did not accurately report the FWS recipients and funds for Part VI Program Summary for Award Year July 1, 2021, through June 30, 2022. They did not include $1,279,012 in the Federal Work Study that agreed to their retained documentation. We consider this finding to be an instance of noncompliance of internal control over compliance relating to the Reporting compliance requirement. Questioned Costs: N/A Effect: The result is the application for the FISAP could affect the Campus-Based program funding for the upcoming year. Recommendation: We recommend that the College implement procedures in order to properly report amounts on the FISAP that agree to retained documentation. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.

Categories

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

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $2.27M
84.063 Federal Pell Grant Program $1.06M
84.033 Federal Work-Study Program $957,859
84.038 Federal Perkins Loan Program $75,937
84.007 Federal Supplemental Educational Opportunity Grants $59,400
84.425 Education Stabilization Fund $31,926