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The institution is in compliance with its program responsibilities under Title IV of the most recent Higher Education Act as amended. (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)
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Summary
Fayetteville Technical Community College (FTCC) receives federal funding from the U.S. Department of Education under Title IV of the 1998 Higher Education Act Amendments. The U.S. Department of Education has deemed that Fayetteville Technical Community College satisfies the definition of an eligible institution under the Higher Education Act of 1965 and is approved to participate in Federal Student Aid Programs through June 30, 2019. The College’s Program Participation Agreement was approved on November 17, 2015.
Narrative
FTCC receives federal funding from the U.S. Department of Education (DOE), which is valid through June 30, 2019 per the Eligibility and Certification Approval Report and Program Participation Agreement. These agreements affirm the College’s eligibility to participate in the following Title IV and Higher Education Act programs: Federal Pell Grant Program, Federal Direct Student Loan Program, Federal Parent Loan for Undergraduate Students (PLUS), Federal Supplemental Educational Opportunity Grant Program, and Federal Work-Study Program.
There are no issues that currently exist with Title IV programs for the College regarding the bulleted items below:
- FTCC has not been placed on the reimbursement method.
- The College has not been required to obtain a letter of credit in favor of the DOE.
- The College has not been obligated to post a letter of credit on behalf of the DOE or other financial regulatory agencies.
- The College is not aware of any impending litigation issues with respect to financial aid activities.
- There are no significant unpaid dollar amounts that are due back to the DOE.
- FTCC is not aware or notified of infractions to regulations which would jeopardize Title IV Funding.
FTCC is aware of two financial aid-related complaints filed with the DOE. The first complaint involved a student’s dissatisfaction with the College’s decision to deny financial aid assistance. This decision was based on the student’s record indicating attendance at multiple institutions, numerous withdrawals, and a significant unpaid balance at previous colleges. The second complaint involved a student’s disagreement with FTCC’s decision to cancel his remaining loan eligibility. This decision was based upon the student expressing to FTCC administrators that he would not repay his loans. In both cases, the College informed each student of the decisions and appeal processes in a timely manner. Both decisions were supported by DOE as validated in the first complaint by letter and in the second complaint by telephone.
There have been two letters of adverse communication received from the DOE requesting clarification regarding Gainful Employment reporting. FTCC reviewed and corrected the reporting errors identified by the DOE and was notified telephonically that the College would not receive additional letters related to these Gainful Employment issues.
FTCC’s three-year 2013 draft cohort default rate is 22 percent. The College continues to decrease its cohort default rate.
The North Carolina Office of the State Auditor (OSA) conducts an annual Statewide Single Audit for North Carolina in accordance with standards contained in “Government Auditing Standards issued by the Comptroller General of the United States, the requirements of the Single Audit Act Amendments of 1996, and the provisions of the Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations.” This is an independent audit of financial aid programs at the statewide level. As a component unit of the state of North Carolina, FTCC is clearly identified in OSA’s annual Single Audit Report on the Schedule of Expenditures of Federal Awards by State Agency. The three most recent Statewide Single Audit Reports were completed for fiscal years ended June 30, 2015, 2014, and 2013. FTCC’s federal awards are clearly identified on pages 320, 328, and 300, respectively, in the last three year’s reports. OSA’s annual Statewide Single Audit Report includes a Summary of Findings and Questioned Costs by State Agency, which clearly delineates findings by institution. This summary of findings begins on pages 165, 173, and 139, in the last three year’s reports. FTCC does not have any findings listed in OSA’s report for any of the past three fiscal years.
In addition to the annual Statewide Single Audit Report, each community college in the state of North Carolina is subject to a financial audit at a minimum of once every two years, in accordance with Section 115D-58.16 of the Community College Laws of North Carolina. FTCC’s three most recent financial statement audits were for fiscal years ended June 30, 2015, 2013, and 2011. FTCC received unqualified opinions in the Independent Auditor’s Reports for all three fiscal years. There were no audit findings in any of these reports. OSA’s Independent Auditor’s Reports 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 for fiscal years ended June 30, 2015, 2013, and 2011 disclosed no deficiencies in internal control that were considered to be a material weakness and disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. FTCC is currently in compliance with DOE regulations. The independent audits of financial aid programs and the College’s financial statements affirm compliance.