Finding Text
2024‐002
Direct Programs – Department of Education ALN # 84.268, 84.063, 84.007, 84.033
Student Financial Assistance Cluster – Cash Management
Significant Deficiency in Internal Controls Over Compliance
Criteria:
34 CFR 676.21(a) The Federal share of the FSEOG awards made by an institution may not exceed 75 percent of the amount of FSEOG awards made by that institution.
34 CFR 675.26(a) The Federal share of FWS compensation paid to a student employed other than by a private for-profit organization, as described in § 675.23, may not exceed 75 percent unless the Secretary approves a higher share under paragraph (a)(2) or (d) of this section.
Condition:
During our review of the cash management associated with the match for FSEOG and FWS, it was discovered that the match required by the College of 25 percent, as noted above the federal share of FSEOG and FWS may not exceed 75 percent of total FSEOG and FWS awards, was not performed and there was no waiver to relieve the college of the match requirement.
Cause:
The College’s existing control procedures for matching the federal funding for FSEOG and FWS reconciling did not detect the error.
Effect:
The drawdown of funds associated with FSEOG and FWS from the Department of Education was over drawn as the College did not perform the match associated with the two programs.
Questioned Costs:
None reported
Sampling:
No sampling was done as the match for the year was not performed.
Repeat Finding from Prior Years:
No
Recommendation:
The College should implement a control process that regularly reviews all FSEOG and FWS drawdowns to ensure that the match is appropriately applied before submitting to the Department of Education.
Views of Responsible Officials:
The Director of Financial Aid and VP of Finance and Business agrees with the audit finding. Subsequent to the audit finding, the VP of Finance and Business initiated process changes to review the drawdowns and submitted a revision of drawdowns to the Department of Education to correct the two program drawdowns as needed. In addition, the trial balance and financial statement amounts were also adjusted to reflect the match for fiscal year 2024. The Director of Financial Aid and VP of Finance and Business will be conducting a review of the processes and controls for FSEOG and FWS closely to ensure this does not occur again.