Finding Text
Finding 2023-002 - U.S. Department of Education (USDEJ, Title IV Student Financial Aid
Programs (Significant Deficiency}:
Information on the Federal Program - Federal Pell Grants Program, CFDA No. 84.063, June
30 2023; Federal Work Study Program, CFDA No. 84.033, June 30, 2023; Federal Supplemental
Educational Opportunity Grant, CFDA No. 84. 007, June 30, 2023; Federal Direct Student Loans,
CFDA No. 84.268, June 30, 2023.
Criteria - Federal regulations require monthly reconciling of Title IV programs and accurate
completion of required financial reports.
Condition- See below.
Questioned Costs - N/A
Context- We observed the following condition in connection with our testing of the various U.S.
Department of Education, Title IV, Student Financial Assistance Programs:
The College had differences in the following programs which were not reconciled to the
general ledger: Federal Work Study, Federal Pell Grant and Federal Supplemental
Educational Opportunity Grant (SEOG), which caused unreconciled data to be used on
the Fiscal Operations Report and Application to Participate (FISAP}. Citation: SFA
handbook Ch. 5 CFR668.161 - 668.176.
Cause - Oversight by responsible employees, lack of sufficient staffing and staff turnover.
Effect - The College's participation in the Title IV programs could be subject to USDE sanctions
as applicable for not reconciling its programs and incorrectly completing its FISAP.
Repeat Finding - Yes.
Auditor's Recommendation - The College should implement corrective actions to ensure that
the above findings are resolved and will not recur in future periods.
View of Responsible Officials - A new CFO and financial aid director have been hired. The
CFO is in the process of reorganizing Business Office operations, hiring additional staff,
and training existing staff to ensure the monthly reconciliations of all programs and
accurate completion of required federal reports. The financial aid director as well as the
controller will be responsible for maintenance of those monthly reconciliations.