Finding Text
2023-001 Special Reporting – Fiscal Operations Report and Application to Participate (FISAP) (Material Weakness) Department of Education, SFA Cluster Criteria: As a Campus-Based Program participant, the College is required to submit an accurate FISAP yearly by October 1. The information reported on the FISAP is used to determine the school’s Campus Based Program funding for the upcoming award year as well as report Campus‑Based Program expenditures for the prior award year. The College is required to submit a Fiscal Operations Report plus other information required; the information must be accurate and shall be submitted on the form at the time specified, 34 CFR 674.19(d)(2). Condition: During our review of the College’s FISAP it was determined that tuition and fee revenue was overstated and Pell amount reported was understated. Cause: Tuition and fee revenue reported on the FISAP included deferred tuition and fees that that were not recognized until the subsequent year. Pell was understated due to preparation of the FISAP before a reconciliation was completed. Effect: Incorrect reporting of information may cause federal funding for the College to be over-awarded or under-awarded in subsequent years. In addition, failure to accurately report the College’s FISAP may jeopardize future federal funding. Repeat Finding from a Prior Year: No. Recommendation: We recommend the College improve procedures to ensure accurate reporting. Management Response: We concur with this finding. Staff made a “change request” to the U.S. Department of Education (USDOE) to adjust the FISAP. Once the “change request” was approved by the USDOE, we edited the FISAP report to appropriately reflect the audited numbers. It is important to note that the FISAP is due by September 30th, and the USDOE allows institutions until December 15th to adjust the figures. Our audited financial statements are due no later than September 30th, which normally allows time to ensure that the figures on the FISAP are reconciled to the ones on the audited financial statements. Nevertheless, if the audited statements are not completed by the September 30th deadline, we will make sure that any adjusting entries to the FISAP are made by the final date of December 15th.