Finding Text
Finding 2024-002 – N. Special Tests and Provisions – Disbursements to or on Behalf of Students
Information on Federal Program(s) – Federal Work-Study Program (Federal Assistance Listing #84.033)
Criteria or Specific Requirement – For students receiving Federal Work-Study (“FWS”) Program funds, federal regulations (34 CFR 675.16) require institutions to pay FWS compensation at least once a month. Before an institution makes an initial disbursement of FWS compensation to a student for an award period, the institution must notify the student of the amount of funds the student is authorized to earn, and how and when the FWS compensation will be paid. Regardless of who employs the student, the institution is responsible for ensuring that the student is paid for work performed.
Condition – For certain students selected for testing, the Institute did not pay the student FWS compensation based on the correct hours worked. Additionally, certain students’ timesheets were not properly reviewed/approved.
Cause – Administrative oversight in internal controls over FWS disbursements.
Effect or Potential Effect – The Institute was not in compliance with FWS disbursement requirements.
Questioned Costs – Below reportable threshold.
Context:
• For 1 of 40 pay periods selected for FWS testing, the amount of compensation disbursed to the student did not agree to the hours worked per the approved timesheet.
• For 4 of 40 pay periods selected for FWS testing, the students’ timesheet was not properly reviewed/approved by a supervisor as required.
Indication of Repeat Finding – No similar finding noted in the prior year.
Recommendation – We recommend that the Institute enhance its procedures and its internal controls to ensure that students receiving FWS compensation are paid timely, and for the correct amounts. Additionally, we recommend that student timesheets be approved prior to the disbursement of funds.
Views of Responsible Officials – The Institute agrees with the finding. Moving forward, when Student Employment payment information is entered into our Human Resource information system, the Institute will continuously check timecards to ensure that the wages match the number of hours students work. Furthermore, the Institute will stay in communication with student supervisors to ensure they are approving timecards before payroll is processed.