Finding 612320 (2022-001)

Finding 2022-001 Reporting Grantor(s): Department of Education Program: Federal Perkins Loan Assistance Listing#: 84.038; Student Financial Aid Cluster Title: Federal Perkins Loans; Student Financial Aid Cluster Award Year: 7/2021 ? 6/2022 Award #: N/A Pass-through Number: N/A Criteria Per the 2022 OMB Compliance Supplement, an institution is required to maintain program and fiscal records for all transactions that occurred after the most recent Fiscal Operations Report and Application to Participate (FISAP) was filed. As part of its procedures, the program should ensure that overall cash-on-hand or excess cash amounts are reconciled. Condition Through testing the Student Financial Assistance cluster in the 2022 Uniform Guidance audit, we noted that there were two line-items on the FISAP that did not agree to supporting documentation with reportable differences larger than $25,000. Within the Federal Perkins Loan section, field item 1.1 ?Cash on hand and in depository as of 6/30/2022? was understated by $378,201, while field item 1.2 ?Cash on hand and in depository as of 10/31/2022? was overstated by $113,754. Cause The cause of this finding was due to insufficient review of the FISAP prior to submission. Effect The FISAP was submitted with two fields in the Federal Perkins Loan section that were misstated. Questioned Costs None. Recommendation Management should enhance the control in place to review each line item and ensure agreement to underlying support on the FISAP prior to submission. Management?s View and Corrective Action Plan Management?s response is included in ?Management?s Views and Corrective Action Plan? included in this report.