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3.0 Comprehensive Standards

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3.10.3 Financial Aid Audits PDF Print E-mail
Sunday, 30 August 2009 19:34

3.10.3 Financial Aid Audits

The institution audits financial aid programs as required by federal and state regulations.

Responsible Unit: Division of Business and Finance

Compliance Judgment

Compliance

Narrative

North Carolina Agricultural and Technical State University (A&T) annually audits its financial aid programs as required by federal and state regulations. According to the information extracted from the Banner Student System, approximately 75% of A&T's students receive some form of financial aid. During the 2007-08 academic year, A&T received funding from federal, state, institutional and private sources. Federal Pell Grant awards totaled $13,358,885 and Federal Loans Program (Federal Direct Subsidized, Unsubsidized, Parent Loan and Federal Perkins) totaled $46,834,410, according to the financial aid director. The institution's cohort default rate decreased from 10.2% for the 2005 fiscal year to 8.9% for the 2006 fiscal year, rising to 11% in 2007.[1]

A more detailed discussion of compliance with federal requirements (including audit requirements) for Title IV funding is available in the response to Principle 4.7, Title IV program responsibilities.

As part of the Statewide Single Audit, the North Carolina Office of the State Auditor (OSA) is responsible for conducting annual financial aid and federal audits of state agencies and higher education institutions to assure that the state can comply with legislation and federal grant requirements that require it to obtain an opinion regarding the material accuracy of its basic financial statements and to report on internal controls related to those statements. As part of the annual audit, the OSA performs financial aid audits that evaluate internal controls and tests compliance with federal aid programs. All reports are then submitted to the federal government as part of the State of North Carolina single audit.[2]

A&T's financial aid programs are audited annually by OSA as required by the Office of Management and Budget (OMB) Circular A-133 and the Single Audit Act. However, the financial aid program at A&T is not selected every year as part of the Student Financial Assistance Cluster, which requires a more in-depth audit of compliance issues culminating in a separate Federal Compliance Audit Report for the university. For FY 2008, OSA included A&T in its Student Financial Assistance Cluster and issued a separate audit report. For FY 2007, A&T was included only in the Research and Development Cluster. Therefore the financial aid audit for FY 2007 is included in the university's Financial Statement Audit Report. The engagement letters for the past two years [3] [4] define the parameters for the State Single Audit and the financial audit.

The Statewide Federal Compliance Audit Report for 2008 noted two findings, one of which did not involve the Financial Aid Office or its execution of the federal assistance program.[5] The State Financial Statement Audit Report for FY 2008 had no reportable findings for financial aid.[6] The State Financial Statement Audit Report for FY 2007 dated April 2008 noted two weaknesses in internal control related to the Financial Aid Office.[7] All audit findings were addressed immediately by the financial aid and business & finance offices. University responses are noted in the audit reports.

A&T also submits to the federal government an Annual Fiscal Operations Report and Application to Participate (FISAP) detailing Title IV expenses.[8] A&T has not received any limitations, suspensions, or terminations from the US Department of Education with regard to student financial aid or other financial aid programs during the previous three years. There are no reimbursements or exceptional statuses in regard to federal or state financial aid. The University transacts monetary business with the Federal Government via electronic wire transfer, and has never been obligated to post a letter of credit on behalf of the Department of Education or other agencies.

Supporting Documents

[1] NC Agricultural and Technical State University Cohort Default Rate Table

[2] NC Office of the State Auditor Statewide Single Audit website

[3] NC Office of the State Auditor Audit Engagement Letter for FY 2007

[4] NC Office of the State Auditor Audit Engagement Letter for FY 2008

[5] Statewide Federal Compliance Audit Report for FY 2008

[6] NC Office of the State Auditor Financial Audit Report for FY 2008

[7] NC Office of the State Auditor Financial Audit Report for FY 2007

[8] Fiscal Operations Report and Application to Participate (FISAP)

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Last Updated ( Tuesday, 02 February 2010 14:26 )
 

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