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4.7     The institution is in compliance with its program responsibilities under Title IV of the 1998 Higher Education Amendments. (In reviewing the institution’s compliance with these program responsibilities, the Commission relies on documentation forwarded to it by the U.S. Department of Education.) (Title IV program responsibilities)

  ✔    Compliance             Partial          Non-Compliance

Summary

Fayetteville Technical Community College (FTCC) is in compliance with this federal requirement. FTCC has met eligibility requirements and is approved to participate in federal student financial assistance programs through September 30, 2011.  The North Carolina Office of the State Auditor annually selects a sample of colleges and universities to test for compliance under the Single Audit Act.  The College was selected for fiscal year 2006-07 and was found to be in compliance with requirements under the Federal guidelines.

Narrative

FTCC receives federal funding from the U.S. Department of Education under Title IV of the 1998 Higher Education Amendments.  The College’s Program Participation Agreement was approved on January 9, 2007, and is valid through September 30, 2011.  (Eligibility and Certification Approval Report) (Program Participation Agreement).

This agreement covers the College’s eligibility to participate in the following Title IV and Higher Education Act programs:  Federal Pell Grant Program, Federal Family Education Loan Program, Federal Direct Student Loan Program, Federal Perkins Loan Program, Federal Supplemental Educational Opportunity Grant Program, and Federal Work-Study Program.

The Office of the State Auditor (OSA) selects a sample of colleges and universities each year to test for compliance under the 1996 Single Audit Act.  Evidence is examined to determine the College’s compliance with the requirements described in the U.S. Office of Budget and Management Circular 1–133 Compliance Supplement applicable to the State of North Carolina’s major federal programs.  FTCC was tested for compliance for the year ending June 30, 2007.  Auditors issued a management letter in January 2008 for this audit.  The audit findings were presented to the College’s Board of Trustees at the March 2008 meeting.

The College’s Title IV Compliance Audit Management Letter revealed three audit findings from the 2006-07 fiscal year.  Two of the findings did not result in any questioned costs.  In the third finding, auditors reported that likely questioned costs were estimated to exceed $10,000. The College responded to all of the audit issues.  As a result, OSA included two of the audit findings in the Statewide Single Audit Report.  The Department of Education responded by letter on October 3, 2008, and closed both of the College’s Single Audit findings.  Based on documentation submitted by the College in response to the finding that questioned costs in excess of $10,000, FTCC was found in fault of over awarding one student by $576.00.  This amount was refunded to the Department of Education on November 12, 2008.  OSA has followed up on all three of the audit findings reported in January 2008 and has concluded that FTCC has resolved all of the audit issues.  Documentation of OSA’s Summary Schedule of Prior Year Audit Findings can be found in the 2008 Statewide Single Audit Report.  The two findings are mentioned in several locations within the report as prior year audit findings.  In all instances, the current status of the findings is that full corrective action has been taken, which is indicated as follows:  page 418, page 426, and page 428.

Currently, FTCC is undergoing a federal financial aid audit.

The College has also received an inquiry requesting that the Associate in Arts and Associate in Science Diploma Programs lead to gainful employment, a requirement for Title IV funding eligibility. On February 23, 2009, the College provided justification information on gainful employment of students completing these programs.

As reflected in the College’s Cohort Default Rate for Student Loans Report, in 2007 the default rate was 15.2 percent.   This report provides a history back to 1996.

Supporting Documentation

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