Finding 385114 (2023-003)

-
Requirement
A
Questioned Costs
$1
Year
2023
Accepted
2024-03-27
Audit: 298219
Auditor: Sikich LLP

AI Summary

  • Core Issue: Three students (12%) were found working during scheduled class hours, violating federal regulations regarding FWS employment.
  • Impacted Requirements: Non-compliance with 34 CFR 675.20 on allowed work hours and the Federal Student Aid Handbook regarding class schedules.
  • Recommended Follow-Up: Review and update policies to prevent FWS recipients from being paid for hours that overlap with class times.

Finding Text

Criteria: 34 CFR 675.20 (d)(1) notes “A student may be employed under the FWS program and also receive academic credit for the work performed. Those jobs include, but are not limited to, work performed when the student is – (i) Enrolled in an internship; (ii) Enrolled in practicum; or (iii) Employed in a research, teaching, or other assistantship.” Further, 34 CFR 675.20 (d)(2) states “A student employed in a FWS job and receiving academic credit for that job may not be – … (ii) Paid for receiving instruction in a classroom, laboratory, or other academic setting.” Volume 6, Chapter 2 of the 2022-2023 Federal Student Aid Handbook page 4 notes, “In general, students are not permitted to work in FWS positions during scheduled class times. Exceptions are permitted if an individual class is cancelled, if the instructor has excused the student from attending for a particular day, and if the student is receiving credit for employment in an internship, externship, or community work-study experience. Any such exemptions must be documented. Condition: During our testing of twenty-five individuals receiving federal work study, we noted three individuals (12%) working during scheduled class hours. We consider this condition to be an instance of non-compliance relating to the Activities Allowed or Unallowed compliance requirement. Statistical sampling was not used in making sample selections. Questioned Costs: $154 Cause and Effect: Without proper review of hours worked against class hours scheduled, federal work study recipients could receive compensation that is not allowed under the Code of Federal Regulations. Recommendation: We recommend the College evaluate policies and procedures to ensure work study recipients do not receive compensation for hours worked when they have scheduled class hours. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.

Categories

Questioned Costs Student Financial Aid

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $2.27M
84.063 Federal Pell Grant Program $1.06M
84.033 Federal Work-Study Program $957,859
84.038 Federal Perkins Loan Program $75,937
84.007 Federal Supplemental Educational Opportunity Grants $59,400
84.425 Education Stabilization Fund $31,926