Finding Text
Federal Agency: Department of Education
Federal Program Title: Student Financial Assistance Cluster
ALN Numbers: Various
Award Period: June 1, 2023 through May 31, 2024
Type of Finding:
• Significant Deficiency in Internal Control Over Compliance
• Other Matters
Criteria or Specific Requirement: 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, the institution should submit its FISAP that includes the Fiscal Operations Report for the award year and the Application to Participate for the subsequent award year (FWS, FSEOG 34 CFR 673.3; Fiscal Operations Report and Application to Participate Instructions).
Condition: The College did not have the proper procedures in place to reconcile its Perkin’s accounts.
Questioned Costs: None.
Context: During our testing, it was noted the College does not have a process in place to ensure Perkins accounts are being reconciled on a timely basis.
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.
Repeat Finding: Yes – 2023-003
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.
Views of Responsible Officials: There is no disagreement with the audit finding.