13.6 FEDERAL AND STATE RESPONSIBILITIES
The institution (a) is in compliance with its program responsibilities under Title IV of the most recent Higher Education Act as amended and (b) audits financial aid programs as required by federal and state regulations. In reviewing the institution’s compliance with these program responsibilities under Title IV, SACSCOC relies on documentation forwarded to it by the U. S. Department of Education.
JUDGEMENT
Compliance 
Non-Compliance Partial Compliance
NARRATIVE
(a) Compliance with its Program Responsibilities Under Title IV of the Most Recent Higher Education Act as Amended
North Carolina Agricultural and Technical State University is in compliance with its Title IV program responsibilities. The Office of Student Financial Aid awards financial aid in accordance with federal, state and institutional guidelines.
The university is in possession of its Program Participation Agreement (PPA) and Eligibility and Certification Approval. The PPA covers the following Title IV programs: Federal Pell Grant, Federal Supplemental Education Grant, Federal Teach Grant, Federal Work Study, Federal Direct Student Loan and the Federal Perkins Loan (program was terminated for all schools). The PPA is effective through September 30, 2024.
The Fiscal Operations Report and Application to Participate (FISAP) is submitted yearly by the required deadline to the Department of Education in accordance with federal guidelines.
The university has no impending suspension, debarment, litigation, or termination with any of the financial aid programs. N.C. A&T is not aware of any infractions to regulations which would jeopardize the Title IV or other funding programs. The university does not owe any reimbursement to the Department of Education.
N.C. A&T received the most recent unofficial draft 2017 Cohort Default Rate of 9.4 percent. The official 2017 Cohort Default Rate will be available in September 2020. The institution's three-year cohort default rate decreased from 10.7 percent for the 2016 fiscal year to an unofficial 9.5 percent for the 2017 fiscal year. N.C. A&T has maintained a low default rate since 2015 based on the School’s Fiscal Year 2016, Fiscal Year 2015 and Fiscal Year 2014 report. The 2015 Cohort Default Rate indicates that N.C. A&T State University’s Rate was below the National Default Rate and State of North Carolina Default Rate Averages as shown in the US Default Rates by States. The Office of Student Financial Aid will continue to work on decreasing the institution’s Cohort Default Rate.
(b) Audits Financial Aid Programs as Required by Federal and State Regulations
The institution annually audits its financial aid programs as required by federal and state regulations. According to the information extracted from the Banner Student System, approximately 85 percent of A&T's students receive some form of financial aid. During the 2019—2020 academic year, the university received funding from federal, state, institutional and private sources. Federal Pell Grant awards totaling approximately $32M and Federal Loans Program (Federal Direct Subsidized, Unsubsidized, Parent Loans, and Federal Perkins) totaled approximately $95M, according to the financial aid director.
As part of the Statewide Single Audit, the North Carolina Office of the State Auditor (OSA) is responsible for conducting annual financial aid and federal audits of state agencies and higher education institutions to assure that the state can comply with legislation and federal grant requirements that require it to obtain an opinion regarding the material accuracy of its basic financial statements and to report on internal controls related to those statements. As part of the annual audit, the OSA performs financial aid audits that evaluate internal controls and tests compliance with federal aid programs. All reports are then submitted to the federal government as part of the State of North Carolina single audit.
The
university’s financial aid programs are audited annually by OSA as required by the
Office of Management and Budget (OMB) Circular A-133 and the Single Audit Act.
However, the financial aid program at A&T is not selected every year as
part of the Student Financial Assistance Cluster, which requires a more
in-depth audit of compliance issues culminating in a separate Federal
Compliance Audit Report for the university. For FY 2020, OSA will include
A&T in its Student Financial Assistance Cluster and will issue a separate
financial aid audit report. For FY 2018, the A&T Title III program was
chosen for audit and there were no findings or recommendations for improvement.
Therefore, the financial aid audits for FY 2018
and 2019 are included in the University's Financial Statement Audit Report. The
Statewide Federal Compliance Audit Report for 2016 noted
one finding, which, along with the university’s corrective actions, is detailed
in the report. It is the university’s practice that any audit findings or
recommendations for improvement are addressed immediately by the Financial Aid
and Business and Finance offices. The Statewide Federal Compliance Audit
Report for 2020 is expected to be available by December 2020 and will be
available for review during the onsite visit.
The university also submits to the federal government an Annual Fiscal Operations Report and Application to Participate (FISAP) detailing Title IV expenses. A&T received no limitations, suspensions, or terminations from the US Department of Education with regard to student financial aid or other financial aid programs during the previous three years. There are no reimbursements or exceptional statuses relating to federal or state financial aid. The university transacts monetary business with the Federal Government via electronic wire transfer and has never been obligated to post a letter of credit on behalf of the Department of Education or any other agency.
Supporting Documents
1. Program Participation Agreement
2. Eligibility and Certification Approval Report
3. Fiscal Operations Report and Application to Participate (FISAP) 2019-2020
4. N.C. A&T FY2017 Cohort Default Rate, US Dept. of Education DRAFT
5. NC A&T US DoE School Default Rates 2014-16
7. U.S. Default Rates by State
8. NC Office of the State Auditor Statewide Single Audit website
9. NC Office of the State Auditor Financial Audit Report for FY 2018
10. NC Office of the State Auditor Financial Audit Report for FY 2019
11. Statewide Federal Compliance Audit Report for NCA&T A-133 Fed Compliance FY 2016