Finding 502528 (2022-001)

Federal Award Findings and Questioned Costs Finding 2022-001 Federal Agency: U.S. Department of Education Federal Program Titles: Educational Opportunity Centers Federal Assistance Listing Number: 84.066 Noncompliance – E. Eligibility Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Eligibility Criteria: To be eligible to participate in an Educational Opportunity Centers program an individual must meet all of the following requirements: (1) is a citizen, national, or permanent resident of the United States or is in the United States for other than temporary purpose; (2) is at least 19 years or age (an individual less than 19 years of age can be served by the Educational Opportunity Centers program if Talent Search services are not available); and (3) expresses a desire to enroll or is enrolled in a program of postsecondary education and requests information or assistance in applying for admission or financial aid for such program. A veteran, regardless of age, is eligible to participate in an Educational Opportunity Centers program if he or she meets the other eligibility requirements (34 CFR section 644.3). Condition: Based upon inspection of the Organization’s participant files and discussions with management, the Organization did not properly verify participants' eligibility required to participate in an Educational Opportunity Centers program. Context: Of a sample size of twenty (20) participant files, we noted that one (1) participant did not qualify under the eligibility requirements due to status of citizenship. Cause: There is a significant deficiency in internal controls over the compliance for the eligibility type of compliance. The Organization has failed to execute the existing internal controls that have been designed to reasonably assure the program is in compliance. Our sample size is statistically valid. Known Questioned Costs: $417 Effect: The Educational Opportunity Centers program is in non-compliance with the eligibility type of compliance. Recommendation: We recommend the Organization update and improve the existing internal controls that have been put in place to better monitor and reasonably assure compliance with the Uniform Guidance and the compliance supplement.