3.10.2 Financial Aid Audits

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

JUDGMENT: Compliant

STATEMENT OF RATIONALE FOR JUDGMENT OF COMPLIANCE

Southwest Texas Junior College provides the following documentation to support compliance with federal and state regulations regarding audits of financial aid programs:

Excerpts from the Annual Financial Reports for the period August 31, 2010 through August 31, 2014

Independent Auditors’ Report
Report on Compliance with Requirements Applicable to Each Major Program and on Internal Control Over Compliance in Accordance with OBM Circular A-133 and the State of Texas Single Audit Circular
Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and the State of Texas Single Audit Circular
Schedule of Expenditures of Federal Awards
Schedule of Expenditures of State Awards
Schedule of Findings and Questioned Costs

Southwest Texas Junior College’s most current program participation agreement issued by the U.S. Department of Education.

Excerpts from the Annual Financial Reports

Each year, Southwest Texas Junior College’s Board of Trustees contracts with an independent certified public accounting firm to audit the annual financial reports. Ede & Company was engaged to perform the audits of Southwest Texas Junior College annual financial reports for the period of review. These audits include an audit of the compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each of its major federal programs and the State of Texas Single Audit Circular that is applicable to each of its major state programs. The audits are conducted in accordance with auditing standards generally accepted in the United States of America; Government Auditing Standards, issued by the Comptroller General of the United States; OMB Circular A-133 Audits of States, Local Governments, and Non-Profit Organizations; and the state of Texas Single Audit Circular.

Southwest Texas Junior College has received an unqualified audit opinion in each of the fiscal years under review and no internal control deficiencies has been identified. Additionally, no findings or questioned costs have been noted for federal or state awards during the period August 31, 2010 through August 31, 2014.
External institution audits are conducted annually by independent certified public accountants under the Single Audit Act. The institution’s 2014 external audit (Annual Financial Report) for the Title IV programs presents the institution in good standing and meeting the federal requirements. No areas of non-compliance related to Title IV programs were found. SWTJC has no pending litigation issues in connection with financial aid, and there are no funds due to the Department of Education. The Annual Financial Report was completed on November 2014 with no reportable findings.

The Southwest Texas Junior College District Annual Financial Reports include the following documents regarding the audit of federal and state financial aid and grant programs:

Independent Auditors’ Report
                                    ◦ August 31, 2010
                                    ◦ August 31, 2011
                                    ◦ August 31, 2012
                                    ◦ August 31, 2013
                                    ◦ August 31, 2014

Report on Compliance with Requirements Applicable to Each Major Programs and on Internal Control Over Compliance in Accordance with OMB Circular A-133 and the State of Texas Single Audit Circular
                                    ◦ August 31, 2010
                                    ◦ August 31, 2011
                                    ◦ August 31, 2012
                                    ◦ August 31, 2013
                                    ◦ August 31, 2014

Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and the State of Texas Single Audit Circular
                                    ◦ August 31, 2010
                                    ◦ August 31, 2011
                                    ◦ August 31, 2012
                                    ◦ August 31, 2013
                                    ◦ August 31, 2014
•Schedule of Expenditures of Federal Awards
                                    ◦ August 31, 2010
                                    ◦ August 31, 2011
                                    ◦ August 31, 2012
                                    ◦ August 31, 2013
                                    ◦ August 31, 2014

•Schedule of Expenditures of State Awards
                                    ◦ August 31, 2010
                                    ◦ August 31, 2011
                                    ◦ August 31, 2012
                                    ◦ August 31, 2013
                                    ◦ August 31, 2014
•Schedule of Findings and Questioned Costs
                                    ◦ August 31, 2010
                                    ◦ August 31, 2011
                                    ◦ August 31, 2012
                                    ◦ August 31, 2013
                                    ◦ August 31, 2014

Program Participation Agreement

In addition to the annual audited financial reports, the U.S. Department of Education has granted Southwest Texas Junior College a fully executed Program Participation Agreement. This agreement states that the institution may participate in student financial assistance programs authorized by Title IV of the Higher Education Act of 1965, as amended. The current eligibility and certification approval report issued by the U.S. Department of Education states that Southwest Texas Junior College is currently certified through December 31, 2019.

The supporting documentation provides evidence that the institution audits financial aid programs as required by federal and state regulations. Per the documentation provided, Southwest Texas Junior College has received an unqualified audit opinion in each of the years examined, no internal control deficiencies have been identified, no compliance issues have been noted, nor have there been any findings or questioned costs relative to federal and state grant awards, including financial aid.

Evidence