Finding Text
Criteria: Under Uniform Guidance 34 CFR 676.21 and 34 CFR 675.26, institutions who receive
federal funds for the FSEOG and FWS program must provide matching funds for the programs
unless they are an eligible Title III or Title V institution and obtain a waiver for the matching
requirement.
Condition: The college did not obtain a waiver for the matching requirement for the 2023-2024
financial aid year and did not provide matching funds for the FSEOG and FWS programs.
Cause and Effect: Previously the college has been automatically selected as being eligible for the
matching funds waiver but did not receive one for 2023-2024 and management did not have
proper controls in place to verify institution eligibility or if a waiver was received. Due to
management being unaware that the college did not receive a waiver for the current year,
matching funds were not provided for the programs and the college did not apply for a waiver.
The effect of which is that the College could be obligated to repay the matching portion that was
drawn in error of approximately $132,717 as of year-end and has accrued the estimated liability
at year end.
Recommendation: We recommend that management ensures policies and procedures are in
place to verify college eligibility for matching fund requirements and to confirm that waivers are
obtained in future years.
Management Response: Management concurs with the finding. It was assumed the college
would be auto-designated as an eligible institution based on Integrated Postsecondary Education
Data System (IPEDS) data. New procedures have been implemented. The college will submit
the Title III/V application annually regardless of the IPEDS status.