A Report on State of Texas Compliance with Federal Requirements for the Student Financial Assistance Cluster for the Fiscal Year Ended August 31, 2013
Report Number 14-021
With the exception of certain non-compliance disclosed in this report, the State of Texas complied in all material respects with the federal requirements for the Student Financial Assistance Cluster of federal programs in fiscal year 2013.
As a condition of receiving federal funding, U.S. Office of Management and Budget (OMB) Circular A-133 requires non-federal entities that expend at least $500,000 in federal awards in a fiscal year to obtain annual Single Audits. Those audits test compliance with federal requirements in up to 14 areas that may have a material effect on a federal program at those non-federal entities. Examples of the types of compliance areas include eligibility and reporting. The requirements for 1 of those 14 areas vary by federal program and outline special tests that auditors are required to perform, such as determining whether a higher education institution (1) accurately verified information on a student's financial assistance application or (2) properly calculated the amount of unearned Student Financial Assistance Cluster funds it needed to return to the federal government. The compliance areas determined to be direct and material may vary significantly among audited entities. Therefore, a comparison of the number of reported findings among entities included in this report may not be an accurate indicator of performance. The Single Audit for the State of Texas included (1) all high-risk federal programs for which the State expended more than $73,222,469 in federal funds during fiscal year 2013 and (2) other selected federal programs.
From September 1, 2012, through August 31, 2013, the State of Texas expended $48.6 billion in federal funds. The State Auditor's Office audited compliance with requirements for the Student Financial Assistance Cluster at 18 higher education institutions. Those 18 higher education institutions spent $2.2 billion in federal Student Financial Assistance Cluster funds during fiscal year 2013.
Auditors identified 42 findings for the Student Financial Assistance Cluster, including:
- Two findings classified as material weaknesses and material non-compliance.
- Two findings classified as material weaknesses and non-compliance.
- Thirty-two findings classified as significant deficiencies and non-compliance.
- Five findings classified as non-compliance.
- One finding classified as a significant deficiency.
Download the Acrobat
version of this report. (.pdf)