Finding Text
Federal Agency: US Department of Education Federal Program Name: Student Financial Assistance Cluster Assistance Listing Number: 84.063, 84.268, 84.033, 84.007 Federal Award Identification Number and Year: P063P24032 - 2025, P268K252032 - 2025, P033A243410 - 2025, P007A243410 - 2025 Award Period: July 1, 2024 to June 30, 2025 Type of Finding: Compliance, Other Matter 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 7% 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. Per 2 CFR 200.303, nonfederal entities receiving federal awards are required to establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements. Condition: The College did not meet the community service requirement for its Federal Work Study program. Questioned costs: None. Context: The College did not use at least 7% of its Federal Work Study (FWS) funds for students employed in community service activities. Cause: Due to several staff turnovers in the Financial Aid Office, the community service waiver request was discovered to not have been completed by the submission deadline. Effect: If the College fails to meet any of the FWS community service requirements, then they will be required to return FWS federal funds in an amount equal to the difference between the amount a school should have spent for community service and the amount it actually spent. The College could also be denied future participation in the FWS Program and possibly other FWS programs. Repeat Finding: No Recommendation: We recommend the College review current processes for calculating and tracking the students employed in community service activities for its Federal Work Study funds to meet the minimum 7% requirement.