3.10.2

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

Compliance Judgment

X     In compliance      Partially compliant     Non-compliant

Narrative

Francis Marion University conducts annual audits of its financial aid programs as required by federal and state regulations. The University has contracted with Cline Brandt Kochenower & Co., P.A. to conduct the annual audit of federal award programs as required by the Single Audit Act of 1984 as amended in 1996 and implemented by the Office of Management and Budget (OMB) Circular A-133.

The A-133 audits for the years ended June 30, 2014 [1], 2015 [2], and 2016 [3] resulted in an unqualified report on compliance for major programs with no material weaknesses reported and no significant deficiencies reported. In addition, for each of the three years per the auditor’s reports, “There were no findings relating to the financial statements” and “There were no findings and questioned costs related to federal awards” [4, 5, 6]. Based on the A-133 audit, the University’s federal student financial aid is categorized as a major program and the institution has been designated as a low risk auditee.

In accordance with OMB Circular A-133, the data collection form for reporting on the audits of state, local governments, and nonprofit organizations is completed annually and submitted to the Federal Clearinghouse. The completed Data Collection form is signed by the Controller of the University and by the external auditors. The data collection forms for the years ended June 30, 2014 [7], 2015 [8], and 2016 [9] have been accepted as complete by the Federal Clearinghouse.

The University submits an eZ-Audit report annually to the U.S. Department of Education. The eZ-Audit is required by the U.S. Department of Education for all institutions participating in federal student aid programs and involves the electronic submission of financial statement information and compliance information. The university’s eZ-Audit submissions for the years ended June 30, 2014 [10] and 2015 [11] have been accepted by the U.S Department of Education. The eZ-Audit for the year ended June 30, 2016 [12] was submitted timely and is under Federal Student Aid review [13].

The University participates in three campus-based aid programs: Federal Supplemental Education Opportunity Grants (FSEOG), Federal Work-Study Programs (FWS), and Federal Perkins Loans. Based on the federal requirements for participating in these programs, the University submits a Fiscal Operations Report and Application to Participate (FISAP) annually to the U.S. Department of Education. The FISAP report includes an application for participation in the three federal campus-based programs for the upcoming year as well as a report on the operations of the programs for the previous year.

The University disburses funds from state scholarship and grant programs. These programs include Legislative Incentives for Future Excellence (LIFE) scholarships, HOPE scholarships, Palmetto Fellows Scholarships, and South Carolina Need-Based Grants. These programs are monitored by the South Carolina Commission on Higher Education. Cline Brandt Kochenower & Co., P.A. examined the University’s compliance with the provisions of the program guidelines for the year ended June 30, 2015 and identified no findings [14].

Documentation

  1. Financial Statements 2014
  2. Financial Statements 2015
  3. Financial Statements 2016
  4. Financial Statement Excerpt 2014
  5. Financial Statement Excerpt 2015
  6. Financial Statement Excerpt 2016
  7. Federal Clearinghouse Data Collection Form 2014
  8. Federal Clearinghouse Data Collection Form 2015
  9. Federal Clearinghouse Data Collection Form 2016
  10. FISAP 14-15
  11. FISAP 15-16
  12. FISAP 16-17
  13. eZ-Audit
  14. State Scholarships