Finding Text
Criteria: Per 34 CFR, Section 674, Federal Work-Study Program, schools participating in FWS (Federal Work Study) and FSEOG (Federal Supplemental Educational Opportunity Grant) a College must provide an institutional share as a match for its federal allocation received, with the minimum requirement being 25% of the total funds received. Although a College is required to match its federal allocation, there is a waiver that some schools are eligible for, under Sections A and B of Titles III and V of the Higher Education Act of 1965.
Condition: Although the College usually qualifies for the match waiver, during fiscal year 2024 the College did not obtain the letter confirming the waiver. Therefore, the College was required to provide a 25% match of FWS and FSEOG funds. The total related federal expenses for the year totaled $168,372 from FWS and FSEOG funds, of which the College should have matched a total of $42,093; however, the College only matched approximately 21% utilizing local funds.
Cause and Effect: As a result of inadequate reviews of the College’s matching requirements for its federal grants received and the absence of a waiver, the College was not in compliance with 24 CFR Section 674. The College missed its required match for a total of 43 students during fiscal year 2024.
Recommendation: We recommend obtaining the available waiver prior to the start of the fiscal year, or prior to approving the upcoming year budget. A proactive approach will avoid any incidents of possible noncompliance related to matching FWS and FSEG funds in the future.