Finding Text
Assistance Listing Number, Federal Agency, and Program Name - 84.033, U.S. Department of Education, Federal Work Study and 84.038, U.S. Department of Education, Federal Perkins Loans Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - In accordance with CFR 676.19 (b)(2) and (3), an institution should establish and maintain fiscal records that are reconciled at least monthly and each year the institution shall submit a fiscal operations report plus other information the secretary requires. The institution shall insure that the information reported is accurate and shall submit it on the form and at the time specified by the secretary. Condition - The Seminary did not have the appropriate procedures and controls in place to file an accurate and timely Fiscal Operations Report and Application to Participate (FISAP). Questioned Costs - N/A Context - The Seminary's FISAP was filed after the due date of September 30, 2022. In addition, the Seminary reported inaccurate information, including inaccurate Perkins loan awards, the number of students to whom federal work study was awarded, and the amount of compensation paid with federal funds. During our testing, the reports used to complete the FISAP included a student that was not eligible for federal work study funds and only included compensation paid through May 2022, resulting in understatement of the amounts on the FISAP by $1,232, which subsequently impacted the institutional and federal share reported on Section C and Section D of Part V of the form. Cause and Effect - A lack of documented role responsibilities, procedures, and review over the preparation of the forms caused a late filing and inaccurate information to be included on the FISAP. Recommendation - We recommend (1) the Seminary implement a review procedure of all students that are coded in the federal work study to ensure that they are eligible and (2) a formal review of the inputs of the FISAP is completed by a person independent from preparing the form. Views of Responsible Officials and Planned Corrective Actions - The financial aid director plans to have the FISAP completed and submitted by the required deadline of September 29, 2023. The Seminary will implement an independent second review of the FISAP, where the supporting records will be included.