Finding Text
2025-03 Eligibility - Significant Deficiency Federal agency: Department of State Assistance Listing Number: 19.015 Program: Cultural, Technical and Educational Centers Criteria: Eligibility under the program requires that the ratio of scholarships and grants provided from funds made available under the appropriation should be approximately one participant from the United States to one participant from elsewhere in the Asia Pacific region. The Center is responsible for establishing and maintaining effective internal controls to ensure compliance with eligibility requirements, including adherence to participant ratio provisions outlined in the agreement. Condition: During our audit, we noted that the ratio of United States participants to international participants was 1.4:1. Cause: Due to uncertainty regarding the availability of federal funding during Spring 2025, the Center proceeded with student enrollment using non-federal funding sources for participants selected to begin in Fall 2025. When federal funds later became available near the end of fiscal year 2025, these students could not be converted to federally funded participants as they had already commenced their programs and in some cases, entered under visa types that restricted their eligibility for federal funding. Effect: The Center did not comply with the eligibility requirements specified in the program agreement, which may impact the Center’s ability to meet program objectives. $ -- Identification as a Repeat Finding, if applicable: Not applicableRecommendation: The Center should strengthen it procedures to ensure compliance with participant eligibility requirements outlined in the program agreement. The Center should implement a process to monitor the composition of participants on an ongoing basis to ensure that the ratio of United States to international participants remains in alignment with program requirements. Additionally, the Center should incorporate funding availability and program requirements into its participant selection and funding decisions to ensure that enrollment timing, funding source, and participant eligibility are appropriately aligned. The Center should also evaluate the impact of visa classifications and other eligibility constraints prior to enrollment to ensure participants can be supported with federal funds when required. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding and the recommendation. See Part IV Corrective Action Plan.