Finding Text
Finding 2025-006 - U.S. Department of Education (ED), Student Financial Assistance Programs – Federal Work-Study Community Service (material weakness): Information on the federal program – Federal Pell Grant Program, FAL No. 84.063, June 30, 2025; Federal Supplemental Opportunity Grant Program, FAL No. 84.007, June 30, 2025; Federal Work-Study Program, FAL No. 84.033, June 30, 2025; Federal Direct Student Loan Program, FAL No. 84.268, June 30, 2025; Federal Teacher Education Assistance for College (TEACH), FAL No. 84.379, June 30, 2025 Criteria – Institutions are required to employ students in community service jobs annually and utilize 7% of the allocation. 34 CFR 675.18. Condition – The institution did not provide a list of community service participants for the 2024- 2025 academic year. Therefore, we were unable to verify institutional compliance. Cause – It appears the Student Financial Aid Office hasn’t employed any students in this area for 2024-2025. Effect – It appears the Student Financial Aid Office hasn’t employed any students in this area for 2024-2025. Questioned Costs – $16,500. Perspective – This is considered a systemic problem given no students were placed in FWS Community Service jobs throughout the academic year. Repeat Finding – No. Auditor's Recommendation – Internal controls should be strengthened or implemented to ensure that students are employed in community service jobs annually. Management’s Response – Tougaloo College acknowledges the auditor’s finding regarding the 7% Federal Work-Study (FWS) community service expenditure requirement under 34 CFR 675.18. While the College has a storied history of community engagement, we recognize that the administrative tracking and placement of students into qualifying FWS community service positions for the 2024-25 academic year did not meet federal mandates. Management accepts the recommendation to strengthen internal controls and is committed to ensuring that our Student Financial Aid Office has the oversight necessary to maintain compliance and protect our participation in Title IV programs. Corrective Action Plan (CAP): • Expanded Community Partnerships: The Office of Enrollment Management and Student Services will immediately re-establish and formalize Memorandums of Understanding (MOUs) with local non-profit organizations and governmental agencies in the Jackson, MS metropolitan area. These partnerships will prioritize literacy and mathematics tutoring (consistent with the FWS "America Reads/America Counts" initiatives) and social service support. • Enhanced Internal Monitoring: The Director of Student Financial Aid will implement a monthly FWS Allocation Tracker. This internal control will monitor FWS expenditures specifically for community service to ensure the 7% threshold is reached well before the end of the academic year. • Administrative Oversight: The Vice President for Enrollment Management and Student Services will conduct a formal quarterly review of these trackers. This ensures that any shortfall in community service placements is identified early enough to initiate a Community Service Waiver request to the U.S. Department of Education, should unique circumstances arise. • Student Awareness Campaign: We will integrate community service FWS opportunities into our student orientation and "Federal Work-Study Fair" to ensure students are aware of these high-impact service opportunities. Completion Date: August 15, 2026 View of Responsible Officials – The College agrees with the finding.