Finding Text
Criteria or specific requirement: The Code of Federal Regulations, 34 CFR 676.10(a)(1) and (2) states “In selecting among eligible students for FSEOG awards in each award year, an institution shall select those students with the lowest expected family contributions who will also receive Federal Pell Grants in that year. If the institution has FSEOG funds remaining after giving FSEOG awards to all such students who will receive Pell Grants, the institution may award the remaining funds to other eligible students.” Furthermore, institutions are required to ensure that only eligible recipients receive Federal Pell Grants. In addition, Uniform Grant Guidance (2 CFR 200.303) requires nonfederal entities receiving federal awards establish and maintain internal controls designed to reasonably ensure compliance with federal laws, statutes, regulations and terms and conditions of the federal award. Condition: The College awarded FSEOG funds to students with Expected Family Contributions (EFCs) above zero, while eligible students with zero EFCs were not awarded. Questioned Costs: None. Context: Out of 8 FSEOG recipients tested, one FSEOG recipient had an EFC greater than zero while eligible students with zero EFCs were not awarded FSEOG. Cause: A reporting error in the financial aid system misclassified a student’s EFC, leading to incorrect award decisions. Effect: The College did not comply with FSEOG awarding guidelines, which prioritize students with the lowest EFCs. Repeat Finding: No. Recommendation: We recommend the College review its FSEOG awarding procedures and strengthen controls to ensure accurate identification and prioritization of eligible students based on EFC. Views of responsible officials: There is no disagreement with the finding.