Finding Text
Federal Agency: U.S. Department of Education Federal Program Name: Student Financial Assistance Cluster Assistance Listing Number: 84.033 – Federal Work Study Program Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: June 1, 2024 to May 31, 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 675.18(g) require institutions to use at least seven percent of the sum of its initial and supplemental Federal Work Study allocation for an award year to compensate students employed in community service activities unless a waiver is obtained from the Department of Education. Condition: It was noted during audit testing that the University did not meet the community service requirement for its Federal Work Study allocation and was unable to obtain a waiver from the Department of Education releasing it from the requirement. Prior to the 2024-2025 award year, the University had received a waiver for this requirement. Questioned Costs: N/A Context: Prior to the 2024-2025 award year, the University had received a waiver for this requirement. Cause: Management did not receive a waiver from the Department of Education to waive this requirement. Effect: The Department of Education could reduce or eliminate the University’s Work Study award. Repeat Finding: No Auditor’s Recommendation: We recommend that the University establish procedures to ensure that at least 7% of Federal Work Study allocation is used for community service jobs, or successfully receive a waiver as had happened in previous years. Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with the audit finding.