Sam Houston State University (SHSU) is in compliance with its program responsibilities under Title IV of the most recent Higher Education Act and audits financial aid programs as required by federal and state regulations.
SHSU’s Office of Financial Aid and Scholarships submits federally mandated Fiscal Operations Report and Application to Participate (FISAP) reports annually to the U.S. Department of Education (DOE) detailing Title IV expenditures. Examples of these reports are provided [1] [2] [3] [4] [5] [6] [7] [8]. FISAPs are used by the DOE when determining initial annual program funding for the institution. For each award year, the University receives e-Campus-Based Statement of Accounts (SOA) funding authorization from the DOE [9] [10] [11] [12] [13] [14] [15] [16]. In accordance with these statements, authorized federal funds for these programs are withdrawn from the University’s grantee account. The University’s Contracts and Grants Department prepares the draw-down request in the G5 system [17], and funds are then received electronically.
The SHSU Office of Financial Aid and Scholarships regularly audits its financial aid programs as required by federal and state regulations. The DOE conducted a program review in 2014 of the 2012-2013 Award Year (later expanded to 2001-2014) [18]. In response to findings from this report [19], SHSU has implemented multiple actions [20] [21] [22] [23] [24] [25] [26], which were detailed and reviewed as part of SHSU’s 2015 Southern Association of Colleges and Schools Commission on Colleges (SACSCOC) 5th Year Interim Report submission. This audit was ongoing throughout the 2017-2018 academic year with a review of off-site locations that were reported in an untimely manner on the University’s Eligibility and Certification Approval Report (ECAR). The Final Program Review Determination was received in July 2018 [27] and states, in part, “SHSU has taken the corrective actions necessary to resolve Findings 2-6 of the program review report. Therefore, these findings may be considered closed.” Further, the Final Program Review Determination report identified Findings 1, 7, and 8 as requiring further action on the part of SHSU. For Finding 1, the report stated the following:
In Finding 1, SHSU was cited for disbursing Title IV, HEA program funds to students attending an ineligible location. In its May 26, 2015 response, SHSU concurred with the finding of noncompliance and also identified several other additional locations at which students received Title IV, HEA program funds prior to the institution receiving SACS approval for those locations. . . . The total liability for this finding is $690,871.98, which includes the total amount disbursed in Federal Pell, FSEOG, and TEACH grant funds, COF, and EL calculations for William D. Ford Federal Direct Loan program funds. [27]
As of August 31, 2018, SHSU has made payment to the DOE in the full amount of $690,871.98 [28]. As Finding 1 related to off-site locations for the award years 2000-2001 through 2007-2008 and the institution’s University Park location for the award years 2010-2011 through 2013-2014, and because SHSU notified SACSCOC of these locations in 2008 and 2014, respectively, no additional action was required.
For Finding 7, relating to deficiencies in Cleary Act reporting, the report stated the following:
The review team’s examination also showed that the identified violations were, for the most part, satisfactorily addressed by the University’s 2015 ASR and its new and revised internal policies and procedures. As such, the Department has also determined that [SHSU’s] corrective action plan meets minimum requirements. For these reasons, the Department has accepted [SHSU’s] response and considers this finding to be closed for the purposes of this program review. [27]
For Finding 8, relating to Drug and Alcohol Abuse Prevention Program Requirements, the report stated the following:
Based on the review team’s examination, the identified violations were, for the most part, satisfactorily addressed in the May 26, 2015 Response. As such, the Department determined that SHSU’s remedial action plan meets minimum requirements. For these reasons, the Department has accepted the response and considers this finding to be closed for purposes of this program review. [27]
The State Auditor’s Office is also responsible for conducting annual financial aid and federal audits of state agencies and higher education institutions. The most recent Federal Portion of the Statewide Single Audit for SHSU was performed for the year ending August 31, 2017 [29], in accordance with the Office of Management and Budget’s (OMB) Circular A-133 as required by federal law. Findings of this audit were as follows:
For 2 (3 percent) of 60 students tested who had a status change, the University did not report the status change or effective date to NSLDS accurately. . . . In addition, the University did not report one student’s withdrawn status in a timely manner because of a coding error in Banner.
The auditor’s recommendations were that the University should:
In response to these findings, SHSU has implemented corrective actions [30] [31] [32] [33], which are pending final review by the State Auditor’s Office. At the time of the submission of this report, the State Auditor’s Office had not concluded its review.