FAC Explorer

Finding 3930 (2023-006)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2023-12-12
Audit: 6218
Organization: Presentation College (SD)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: There are significant deficiencies in internal controls over compliance related to the FISAP report, with discrepancies between reported amounts and supporting documentation.
  • Impacted Requirements: Compliance with OMB No. 1845-0030 and relevant CFR regulations is mandatory, and failure to maintain proper documentation affects the accuracy of reported data.
  • Recommended Follow-Up: Ensure all supporting documentation for FISAP reports is retained and coordinate with the Department of Education to address any necessary changes before the College's closure.

Finding Text

Department of Education Student Financial Aid Cluster CFDA # 84.033 – Federal Work Study Program CFDA # 84.007 – Federal Supplemental Educational Opportunity Grants (FSEOG) CFDA # 84.063 – Federal Pell Grant Program CFDA # 84.268 – Federal Direct Student Loans CFDA # 84.038 – Federal Perkins Loan Program 2022-2023 Award Year Reporting – Special Reporting – Fiscal Operations Report and Application to Participate (FISAP). Significant Deficiency in Internal Controls over Compliance Criteria: OMB No. 1845-0030 is the valid OMB control number for the FISAP and responding to this collection is mandatory in accordance with 34 CFR 674.19, 34 CFR 675.19 and 34 CFR 676.19. The FISAP report itself identifies the relevant criteria and information requested in this information collection. Condition: In testing key line items as indicated in the compliance supplement, we noted 2 line items for which amounts reported in the FISAP did not agree to supporting records and documentation that were provided during testing. Lines that were not reported correctly were Part II, Section E Line 22 and Part II, Section D Line 7. Cause: Proper supporting documentation used in preparing the FISAP report was not retained by College personnel and, therefore, there was either no support to provide for testing or re-created support did not agree to amounts originally reported in the FISAP. Effect: Lack of supporting documentation for amounts reported in the FISAP or supporting documentation that does not agree to amounts reported can lead to incorrect information being reported or bring into question accuracy of amounts reported. Questioned Costs: None. Context/Sampling: Sampling was not used. Repeat Finding from Prior Year(s): No. Recommendation: We recommend all backup documentation be maintained for numbers reported on all FISAP reports and to work with the Department of Education prior to College closure to make any changes DOE will require to be made to the reports. Views of Responsible Officials: Management agrees with the finding.

Corrective Action Plan

Finding 2023-006 Reporting – Special Reporting – Fiscal Operations Report and Application to Participate (FISAP). Federal Agency Name: Department of Education Program Name: Student Financial Aid Cluster CFDA # 84.033 – Federal Work Study Program CFDA # 84.007 – Federal Supplemental Educational Opportunity Grants (FSEOG) CFDA # 84.063 – Federal Pell Grant Program CFDA # 84.268 – Federal Direct Student Loans CFDA # 84.038 – Federal Perkins Loan Program Finding Summary: In testing key line items as indicated in the compliance supplement, the auditors noted 2 line items for which amounts reported in the FISAP did not agree to supporting records and documentation that were provided during testing. Lines that were not reported correctly were Part II, Section E Line 22 and Part II, Section D Line 7. Responsible Individuals: Jillaine Smith, Chief Operating Officer, Erin Drew, Facilitator of Advancement Services and Patty Pietz, Presentation Sisters Accountant. Corrective Action Plan: Any errors that were required to be corrected were made for 2022 and resubmitted to the Department of Education prior to the 2023 report being completed. Anticipated Completion Date: September 30, 2023

Categories

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

Other Findings in this Audit

  • 3931 2023-003
    Material Weakness Repeat
  • 3932 2023-004
    Significant Deficiency Repeat
  • 3933 2023-005
    Significant Deficiency
  • 3934 2023-006
    Significant Deficiency
  • 3935 2023-006
    Significant Deficiency
  • 3936 2023-003
    Material Weakness Repeat
  • 3937 2023-006
    Significant Deficiency
  • 3938 2023-007
    Significant Deficiency
  • 3939 2023-003
    Material Weakness Repeat
  • 3940 2023-005
    Significant Deficiency
  • 3941 2023-006
    Significant Deficiency
  • 580372 2023-006
    Significant Deficiency
  • 580373 2023-003
    Material Weakness Repeat
  • 580374 2023-004
    Significant Deficiency Repeat
  • 580375 2023-005
    Significant Deficiency
  • 580376 2023-006
    Significant Deficiency
  • 580377 2023-006
    Significant Deficiency
  • 580378 2023-003
    Material Weakness Repeat
  • 580379 2023-006
    Significant Deficiency
  • 580380 2023-007
    Significant Deficiency
  • 580381 2023-003
    Material Weakness Repeat
  • 580382 2023-005
    Significant Deficiency
  • 580383 2023-006
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $2.87M
84.063 Federal Pell Grant Program $836,094
84.038 Federal Perkins Loan Program $261,044
84.007 Federal Supplemental Educational Opportunity Grants $39,365
84.033 Federal Work-Study Program $30,385