Finding 1140233 (2024-001)

2024-001— Federal Supplemental Educational Opportunity Grants Eligibility U.S. Department of Education Student Financial Assistance Programs Cluster Federal Supplemental Educational Opportunity Grants (84.007) Federal Award Year: 2024-2025 Repeat Finding: No Criteria The Code of Federal Regulations (34 CFR 676.21(a)) requires that the Federal Supplemental Educational Opportunity Grants (FSEOG) program provides grants to eligible undergraduate students who have not previously earned a bachelor’s or first professional degree. Priority is given to Federal Pell Grant Program recipients who have the lowest Expected Family Contribution (EFC). The Code of Federal Regulations (2 CFR 200.303) requires entities receiving Federal awards establish and maintain internal controls deigned to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures in place to ensure accurate awarding of FSEOG funds. Condition The University did not properly award FSEOG funds to one student. Out of the 40 students tested, we noted one student (2.5%) who was eligible to receive the funds during the award period and was not awarded the funds. The University’s internal control activities did not properly identify and correct this compliance finding above. Cause During the packaging process, an employee of the University incorrectly cancelled the award to the student. Effect Noncompliance with federal regulations could result in heightened monitoring by the U.S. Department of Education. Context We tested 40 students who received FSEOG funds. For each student tested, management provided documentation showing the student’s Cost of Attendance (COA), EFC, and awards granted to each student. Out of the 40 students tested, we noted one student (2.5%) who was eligible to receive the FSEOG funds during the award period and was not awarded the funds. Questioned costs There were no questioned costs with respect to this finding. Recommendation We recommend that the College review current processes and controls in place in order to ensure that future student financial assistance is properly awarded. Views of responsible officials Management agrees with this finding. See corrective action plan.