Finding Text
Finding 2024-003
Student Financial Assistance Cluster of Programs
Special Tests and Provisions 84.033 Federal Work-Study Program
U.S. Department of Education
Criteria: 34 CFR 675.19(b)(1) An institution must follow the record retention and examination provisions in this part and in 34 CFR 668.24.
34 CFR 675.19(b)(2) The institution must also establish and maintain program and fiscal records that:
(i) Include a certification by the student's supervisor, an official of the institution or off-campus agency, that each student has worked and earned the amount being paid. The certification must include or be supported by, for students paid on an hourly basis, a time record showing the hours each student worked in clock time sequence, or the total hours worked per day;
(ii) Include a payroll voucher containing sufficient information to support all payroll disbursements;
(iii) Include a noncash contribution record to document any payment of the institution's share of the student's earnings in the form of services and equipment (see § 675.27(a)); and
(iv) Are reconciled at least monthly.
Condition: A sample of thirty-seven students was selected for student file and account testing. Of those tested, thirteen earned federal work study wages during the audit period. For two of these students, the College
was able to provide approved timesheets, payroll vouchers, and employment files, but was unable to locate documentation substantiating employment eligibility verification under the federal work study
program. This is a repeat of prior year Finding 2023-005.
Context: This was discovered during the audit testing of federal work study.
Effect: The College did not have documented employment eligibility verification for federal work study students.
Cause: These appeared to be isolated incidents during a time where payroll management was moved to a new department at the College.