Finding 509645 (2024-002)

Significant Deficiency
Requirement
G
Questioned Costs
-
Year
2024
Accepted
2024-11-21
Audit: 329240
Organization: Rose State College (OK)

AI Summary

  • Core Issue: The college failed to obtain a waiver for matching funds for the FSEOG and FWS programs for the 2023-2024 year.
  • Impacted Requirements: This violates Uniform Guidance 34 CFR 676.21 and 34 CFR 675.26, which require matching funds unless a waiver is granted.
  • Recommended Follow-Up: Implement policies to verify eligibility for matching funds and ensure waivers are applied for annually.

Finding Text

Criteria: Under Uniform Guidance 34 CFR 676.21 and 34 CFR 675.26, institutions who receive federal funds for the FSEOG and FWS program must provide matching funds for the programs unless they are an eligible Title III or Title V institution and obtain a waiver for the matching requirement. Condition: The college did not obtain a waiver for the matching requirement for the 2023-2024 financial aid year and did not provide matching funds for the FSEOG and FWS programs. Cause and Effect: Previously the college has been automatically selected as being eligible for the matching funds waiver but did not receive one for 2023-2024 and management did not have proper controls in place to verify institution eligibility or if a waiver was received. Due to management being unaware that the college did not receive a waiver for the current year, matching funds were not provided for the programs and the college did not apply for a waiver. The effect of which is that the College could be obligated to repay the matching portion that was drawn in error of approximately $132,717 as of year-end and has accrued the estimated liability at year end. Recommendation: We recommend that management ensures policies and procedures are in place to verify college eligibility for matching fund requirements and to confirm that waivers are obtained in future years. Management Response: Management concurs with the finding. It was assumed the college would be auto-designated as an eligible institution based on Integrated Postsecondary Education Data System (IPEDS) data. New procedures have been implemented. The college will submit the Title III/V application annually regardless of the IPEDS status.

Categories

Matching / Level of Effort / Earmarking Eligibility

Other Findings in this Audit

  • 509643 2024-001
    Significant Deficiency
  • 509644 2024-002
    Significant Deficiency
  • 1086085 2024-001
    Significant Deficiency
  • 1086086 2024-002
    Significant Deficiency
  • 1086087 2024-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $10.44M
84.268 Federal Direct Student Loans $6.57M
84.007 Federal Supplemental Educational Opportunity Grants $325,649
84.044 Trio Talent Search $271,884
84.042 Trio Student Support Services $260,240
84.048 Career and Technical Education -- Basic Grants to States $207,514
84.033 Federal Work-Study Program $205,221
93.558 Temporary Assistance for Needy Families $169,142
93.575 Child Care and Development Block Grant $110,855
84.334 Gaining Early Awareness and Readiness for Undergraduate Programs $50,452
84.116 Fund for the Improvement of Postsecondary Education $5,862
47.076 Stem Education (formerly Education and Human Resources) $1,279
84.425 Education Stabilization Fund $0
59.037 Small Business Development Centers $0