FLATHEAD VALLEY COMMUNITY COLLEGE

Direct Program - Department of Education Student Financial Assistance Cluster Federal Financial Assistance Listing: 84.007, 84.033, 84.063, 84.268 Award Numbers: P007A242416, P033A242416, P063P242851, P268K252851 Compliance Requirement: Special Tests & Provisions – NSLDS Reporting Type of Finding: Significant Deficiency in Internal control over Compliance Criteria: Institutions are required to report enrollment information under the Pell Grant and the Direct Loan and FFEL programs via the NSLDS (OMB No. 1845-0035). The administration of the Title IV programs depends heavily on the accuracy and timeliness of the enrollment information reported by institutions. Institutions must review, update, and certify student enrollment statuses, program information, and effective dates that appear on the Enrollment Reporting Roster file or on the Enrollment Maintenance page of the NSLDS Professional Access (NSLDSFAP) website. The data on the institution’s Enrollment Reporting Roster, or Enrollment Maintenance page, is what NSLDS has as the most recently certified enrollment. The Certification Date must be within 60 days of the Effective Date of the Status reported. Condition: In our testing of 60 samples, we noted 10 students whose enrollment status change was not reported within the required timeframe or was not reported accurately. Cause: The College’s existing control procedures to ensure that student status changes are reported accurately and timely in NSLDS were not functioning. Effect: An incorrect status could impact a student’s future awarding and packaging of Title IV. Questioned Costs: None reported. Context/Sampling: Nonstatistical sample of 60 students receiving financial aid out of approximately 600 total students receiving financial aid. Repeat Finding from Prior Year: No. Recommendation: The College should implement a control process to ensure student status changes are reported accurately and timely on NSLDS. Views of Responsible Officials: The College’s management agrees with the finding.

Direct Program - Department of Education Student Financial Assistance Cluster Federal Financial Assistance Listing: 84.007, 84.033, 84.063, 84.268 Award Numbers: P007A232416, P033A232416, R063P232851, P268K242851 Compliance Requirement: Special Tests & Provisions – Disbursement to or on Behalf of Students Type of Finding: Significant Deficiency in Internal control over Compliance Criteria: Institutions that implement an affirmative confirmation process (as described in 34 CFR 668.165 (a)(6)(i)) must make this notification to the student or parent no earlier than 30 days before, and no later than 30 days after, crediting the student’s account at the institution with Direct Loan or TEACH Grants. Institutions that do not implement an affirmative confirmation process must notify a student no earlier than 30 days before, but no later than seven days after, crediting the student’s account and must give the student 30 days to cancel all or part of the loan. Condition: In our testing of 60 samples, 12 students did not receive a timely notification of their award from the College. Cause: In the current fiscal year, the College failed to initiate the notification process timely across 265 students. The issue was discovered internally and corrected by the College, notifying those students during the fiscal year, however it was outside of the 30 day requirement. Effect: Students were not notified of their student financial aid award within 30 days of crediting the student account. Questioned Costs: None reported. Context/Sampling: Nonstatistical sample of 60 students receiving financial aid out of 609 total students receiving financial aid. Repeat Finding from Prior Year: No. Recommendation: The College should have a compensating control or process to ensure timely notifications of aid are delivered to students. Views of Responsible Officials: The College’s management agrees with the finding.

Direct Programs – Department of Education Federal Assistance Listing # –84.063 Student Financial Aid Cluster – Federal Pell Grant Program Eligible Expenses – Pell Eligibility Significant Deficiency in Internal Controls over Compliance Criteria: Each year the U.S. Department of Education provides institutions with Payment and Disbursement Schedules for determining Pell awards. Based upon a student’s enrollment status, the maximum annual amount regarding a student’s Pell award is determined (34 CFR 690.62). Condition: During our testing of students that were disbursed Pell Grants, three students out of a total 40 that were tested did not receive the appropriate amount of Pell Grant. Cause: The University did not have adequate internal controls to ensure Pell awards agreed to the Payment and Disbursement Schedules. One of the cost of attendance amounts was incorrectly input for one specific category of students. Effect: Awards were not calculated correctly. Questioned Costs: None Context/Sampling: A non-statistical sample of 40 students were selected for testing across all assistance programs. Detail of the sample and population of students are as follows: • Sample: 33 students who received Pell disbursements totaling $124,642 • Population: 426 student who received Pell disbursements totaling $1,617,040We identified three students in our sample of 40 who received Pell disbursements that did not match the payment schedule. Total underpayments to the three students was $429. After review of the population, we identified 28 students who received Pell disbursements that did not match the payment schedule. Total underpayments to the 28 students was $4,004. Repeat Finding from Prior Year(s): No Recommendation: We recommend the College enhance internal controls to ensure Pell awards agree to the Payment and Disbursement Schedules. Views of Responsible Officials: Management agrees with this finding.

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