A Compliance Audit
A Report on State of Texas Compliance with Federal Requirements for the Student Financial Assistance Cluster for the Fiscal Year Ended August 31, 2020
February 2021
Summary Analysis
The State of Texas complied in all material respects with the federal requirements for the Student Financial Assistance Cluster in fiscal year 2020.
As a condition of receiving federal funding, Title 2, Code of Federal Regulations, Section 200.501, requires non-federal entities that expend $750,000 or more in federal awards in a fiscal year to obtain annual Single Audits. Those audits test compliance with federal requirements in up to 12 areas that may have a material effect on a federal program at those non-federal entities.
The Single Audit for the State of Texas included (1) all high-risk federal programs for which the State expended more than $142,671,377 in federal funds during fiscal year 2020 and (2) other selected federal programs.
During fiscal year 2020 (from September 1, 2019, through August 31, 2020), the State of Texas expended $95.1 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 approximately $3.0 billion in federal Student Financial Assistance Cluster funds during fiscal year 2020.
Auditors identified 49 findings for the Student Financial Assistance Cluster, which were classified as significant deficiencies and non-compliance.
Jump to Key Points
We have audited the State of Texas’s (State) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on the Student Financial Assistance Cluster for the year ended August 31, 2020.
In planning and performing our audit of compliance, we considered the State’s internal control over compliance with the types of requirements that could have a direct and material effect on the Student Financial Assistance Cluster to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for the Student Financial Assistance Cluster and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance.
This section identifies significant deficiencies, material weaknesses, and instances of non-compliance, including questioned costs, as required to be reported by Title 2, Code of Federal Regulations, Section 200.516(a).
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