GALVESTON COMMUNITY COLLEGE DISTRICTHigher Education

2021-001 Compliance and Internal Controls over Enrollment Reporting (Significant Deficiency) U.S. Department of Education Cluster of Programs ? Student Financial Assistance 84.007 ? Federal Supplemental Educational Opportunity Grants 84.033 ? Federal Work-Study Program 84.063 ? Federal Pell Grant Program 84.268 ? Federal Direct Student Loans 2020-2021 Funding Criteria: Under 2 CFR Section 200.303(a), non-federal entities must establish and maintain effective internal controls to provide reasonable assurance that the entity is managing the federal awards in compliance with statutes, regulations, and the terms and conditions of the award. Condition: Enrollment status for eleven out of the forty student files reviewed was not reported accurately in the enrollment reports submitted to the Department of Education. The College?s established controls over the enrollment reporting process did not work effectively to detect and / or correct these non-compliances over the enrollment reporting process. Effect: This information is important to the National Student Clearinghouse (Clearinghouse) because it lets them know which students are still working towards their degree, and which students are no longer enrolled (either from graduating or dropping out). This information needs to be known because students have a six month grace period after the time they are no longer enrolled and after this grace period is over, student loans must start being repaid. This report also allows the College to determine whether a student has withdrawn and therefore return of funds may be necessary. Cause: The errors arose from a glitch in the College?s reporting software which resulted in the College reporting the enrollment status of students of both the current and the immediately previous semester in submissions to the Clearinghouse, instead of just the current semester. Questioned Costs: None. Auditors? Recommendation: We recommend that enrollment reports are manually reviewed by the Registrar / Director of Student Financial Aid before these are submitted to the Clearinghouse. Evidence of the review should also be maintained to allow for proper audit trail. Views of Responsible Officials: Management has already taken action to ensure that the deficiency noted above is being promptly corrected and control recommended above is being implemented. Additionally, the statuses of students impacted by the glitch have been corrected and revisions to the submissions have been made.

2021-002 Compliance and Internal Controls over Quarterly Reporting (Significant Deficiency) U.S. Department of Education CARES Act: Higher Education Emergency Relief Fund 84.425E ? COVID-19 Student Aid Portion 2020-2021 Funding Criteria: Under 2 CFR Section 200.303(a), non-federal entities must establish and maintain effective internal controls to provide reasonable assurance that the entity is managing the federal awards in compliance with statutes, regulations, and the terms and conditions of the award. Condition: Grant quarterly reports for student aid portion were not posted publicly on the College?s website. The College?s established controls over the quarterly reporting process did not work effectively to detect and / or correct this non-compliance over the quarterly reporting process. Effect: This report is important because it lets the Department of Education know about the usage of funds under the CARES Act: Higher Education Emergency Relief Fund. Cause: There is no formal reporting calendar established at the College to prevent / detect reporting non-compliance. Questioned Costs: None. Auditors? Recommendation: We recommend that reporting deadlines are distributed to the Financial Aid department and the Director of Student Financial Aid should be responsible for adherence to these reporting requirements. Views of Responsible Officials: Management has already taken action to ensure that the deficiency noted above is being promptly corrected. A formal reporting schedule has been devised and distributed to the Financial Aid department with the Director of Student Financial Aid being responsible for timely submission of all required reports.