January 6, 2006

**Control Number ED-OIG/A05F0020**

Dr. Lloyd Benjamin

President

Indiana State University

217 North Sixth Street

Terre Haute, IN 47809

Dear Dr. Benjamin:

This **Final Audit Report**, titled *Indiana State University Compliance
with the Ronald E. McNair Postbaccalaureate Achievement Program
Provisions*, presents the results of our audit. The purpose of the audit
was to determine if Indiana State University (ISU) administered its
Ronald E. McNair Postbaccalaureate Achievement project (McNair project)
in accordance with law and regulations from the October 1, 1999
inception of the project through September 30, 2005. The McNair project
at Indiana State University has been funded to serve 20 participants per
year since the start of the project in 1999. Its funding level has
gradually increased from \$190,000, for project year 1999-2000, to
\$220,427, for project year 2004-2005. The initial four-year grant
authorization, for the period October 1, 1999, through September 30,
2003, totaled \$834,031. The next four-year grant authorization, for the
period October 1, 2003, through September 30, 2007, totaled \$881,708.

BACKGROUND

The goal of the Ronald E. McNair Postbaccalaureate Achievement Program
is to increase the number of doctoral degrees earned by students from
underrepresented populations. The program awards grants to undergraduate
institutions for projects to motivate and prepare students from
disadvantaged backgrounds with strong academic potential. Grantees work
with students through the completion of the undergraduate degree,
assisting with graduate school preparation, application, and entrance.
Grantees also track students' academic progress through the successful
completion of the doctoral degree. Services provided to McNair
participants include the following: research opportunities for college
juniors and seniors, mentoring, seminars and other activities to prepare
students for doctoral studies, internships for participants who have
completed their sophomore year in postsecondary education (with a
research stipend of up to \$2,800), tutoring, academic counseling, and
assistance in securing admission and financial aid for graduate school.

AUDIT RESULTS

Generally, ISU's McNair project properly accounted for McNair grant
funds and supported expenditures with appropriate documentation.
However, the McNair project (1) provided services and equipment to
ineligible students, and (2) provided a McNair official a double
reimbursement.

In its comments to the draft report dated December 20, 2005, ISU
concurred with our findings and recommendations. The comments are
summarized at the end of each finding. The full text of ISU's comments
on the draft report is included as an Attachment to this report.

Finding No. 1 -- ISU provided McNair Project Services and Equipment to
Ineligible Students

ISU provided McNair project services and equipment to ineligible
students. ISU (1) inappropriately provided sophomores with McNair Summer
Research Internships; (2) admitted ineligible students to the McNair
project; (3) inappropriately paid McNair funds to an individual who was
not enrolled at ISU; and (4) allowed non-McNair participants to use
McNair project laptop computers.

######### [ISU inappropriately provided sophomores with McNair Summer Research Internships.]{.underline} Nine students who had not completed their sophomore year of study received from \$2,811 to \$3,526 for room and board and stipends during ISU McNair summer research internships. The students included five sophomores in the project in 2000, two in 2001, and two in 2005. 

According to 34 C.F.R. 647.10(b), \"Each participant given a summer
research internship will have completed his or her sophomore year of
study ....\"

McNair project officials deviated from the University's definition of
junior-year-status and allowed students with 50-60 semester hours of
credit to participate in its summer research internships. The University
requires a student to have 63 semester hours of credit for
classification as a junior. McNair officials interpreted the regulations
at 34 C.F.R. 647.10(b) to mean that students who were enrolled at a
university for two years had completed their sophomore year of study,
regardless of the number of credits accrued.

We identified \$29,004 of grant funds that ISU's McNair project spent
for these ineligible students to participate in the summer research
internships.

######### [ISU admitted ineligible students to the McNair project.]{.underline} Two students were admitted to the McNair project at ISU as members of underrepresented groups in their academic disciplines. Both students were Caucasian females who were not low-income students. The McNair project did not maintain documentation to support its determination that the students were members of groups underrepresented in their academic disciplines. 

The regulations at 34 C.F.R. 647.3(c)(3) state that a student may be
admitted to a McNair project if the student is "\[a\] member of a group
that is not listed in Sec. 647.7 if the group is underrepresented in
certain academic disciplines as documented by standard statistical
references or other national survey data submitted to and accepted by
the Secretary on a case-by-case basis." We found no evidence of
acceptance by the Secretary for the enrollment of these students.

The regulations at 34 C.F.R. 647.32(b)(1) state that the grantee shall
maintain a record of "\[t\]he basis for the grantee\'s determination
that the student is eligible to participate in the project under Sec.
647.3."

The McNair Project Coordinator provided U.S. Department of Education
(Department) statistics to show that two students were members of groups
underrepresented in their academic disciplines.[^1] However, we believe
the statistics do not indicate that either student was underrepresented.
The statistics reported that white, non-Hispanic students were the
largest group awarded doctoral degrees in both disciplines (76 percent
and 83 percent), and females exceeded males in one discipline (59
percent) and were close to the numbers of males (43 percent) in the
other. ISU McNair project officials acknowledge that they did not seek
approval from the Secretary to admit these students.

We identified \$7,613 of grant funds that ISU's McNair project spent on
behalf of the two ineligible students.

[ISU inappropriately paid McNair funds to an individual who was not
enrolled at ISU.]{.underline} One student who was not enrolled at ISU
during 2004 participated in McNair project activities during the Spring
and Summer terms in 2004. In the Spring 2004 term, the student went on a
field trip and attended a conference that was paid for with McNair grant
funds. In the Summer 2004 term, the student participated in the summer
research internship, attended a conference, and received a stipend and
room and board payments.

According to 34 C.F.R. 647.3(b), only students that are \"\... currently
enrolled in a degree program at an institution of higher education ...\"
are eligible to participate in the McNair project. According to an ISU
enrollment criterion, a student is enrolled during a term only if the
student is registered for a class.

The student was a McNair scholar through the Fall 2003 term. During the
Spring and Summer 2004 terms, the student was finishing incomplete
classes from previous terms but was not registered for classes. McNair
project officials stated that they considered a student enrolled during
a term if the student was completing academic work. However, the McNair
officials did not explain their basis for using a different standard
than ISU for determining if a student is enrolled. The decision of
whether a student is considered "enrolled" is made by the institution
depending on its established criteria, and there is no basis for the
McNair program to apply a different standard.

We identified \$2,097 of grant funds that ISU's McNair project spent on
behalf of this ineligible student during 2004.

[ISU allowed non-McNair participants to use McNair project
laptops.]{.underline} Three out of five laptop computers purchased with
McNair grant funds were checked out to students who were not
participating in the McNair project at the time. ISU's McNair project
officials allowed two McNair scholars who checked out McNair project
laptop computers to retain the computers after leaving the McNair
project. Neither student ever returned the computers. Additionally,
McNair project officials allowed one former McNair scholar to check out
a McNair project laptop computer, which was later determined to be
unrecoverable.

The regulations at 34 C.F.R. 74.34(c) state, \"The recipient shall use
the equipment in the project or program for which it was acquired ....\"

ISU's McNair project lacked controls over laptops purchased with McNair
grant funds that are needed to ensure that they are only used by McNair
scholars.

Because McNair officials allowed students who were not participating in
the McNair project to use and keep laptop computers, current McNair
scholars do not have access to laptop computers purchased with grant
funds.

**Recommendations**

We recommend that the Deputy Chief Financial Officer, in conjunction
with the Assistant Secretary for Postsecondary Education, require ISU
to:

1.1 Return \$38,714 in federal funds to the Department;

1.2 Develop and implement procedures to ensure that (1) only students
who have completed their sophomore year of study are allowed to
participate in the summer research internships, (2) the documentation
and approval requirements for admittance as an underrepresented group in
a certain academic discipline are met, (3) only students currently
enrolled in a degree program at ISU are participating in ISU's McNair
project, and (4) only those individuals who are currently participating
in the McNair project are allowed to use equipment purchased with McNair
grant funds; and

1.3 Recover or replace three laptop computers that were checked out to
individuals no longer participating in the McNair project.

ISU Comments

ISU concurs with this finding. ISU prepared and has already implemented
a corrective action plan that includes: (1) revising current policies,
procedures, and management controls to ensure that records are
maintained for all participants to clearly identify eligibility for
participation in: (a) the program, and (b) program services; (2)
developing policies, procedures, and management controls to ensure
effective control and accountability of equipment acquired with federal
funds and including them in the revision of the student handbook and
policies and procedures manual; (3) notifying the former McNair scholars
with laptops in writing that ISU requests the return of the laptop
computer; and (4) replacing the three laptop computers with three newer
and better equipped laptop computers. In addition, ISU will conduct an
orientation for members of the Program Advisory Council to ensure all
members are conversant with participant eligibility guidelines.

Finding No. 2 - A McNair Official Received a Double Reimbursement

A McNair official received travel reimbursements for attendance at a
TRIO training conference from two sources: ISU's McNair grant and from a
TRIO Training grant awarded to another university.

A grantee can only use grant funds for allowable expenses. A duplicative
payment is not considered an allowable expense.

The McNair official received a payment to offset travel expenses of
\$230 from the TRIO Training grantee, but did not subtract this amount
from the amount he submitted for reimbursement from ISU's McNair funds.
ISU identified a \$60 parking expense on the hotel receipt for which the
official did not request reimbursement, but no other reductions were
made. Therefore, we determined that the net overcharge to ISU was \$170.

**Recommendations**

We recommend that the Deputy Chief Financial Officer, in conjunction
with the Assistant Secretary for Postsecondary Education, require ISU
to:

1.  Return \$170 in federal funds to the Department, and

2.  Develop and implement procedures to ensure that McNair officials and
    participants are not reimbursed twice for the same expenses.

# ISU Comments

ISU concurs with this finding. ISU prepared and has already implemented
a corrective action plan that includes: (1) issuing a formal letter of
reprimand to a McNair official who received a double reimbursement, (2)
informing all current and new TRIO program staff members that they can
only use grant funds for allowable travel expenses and that a duplicate
payment cannot be considered an allowable expense, and (3) establishing
a receivable in the amount of \$170 for the duplicate reimbursement for
travel expenses.

OBJECTIVE, SCOPE, AND METHODOLOGY

The objective of our audit was to determine if ISU administered its
McNair project in accordance with law and regulations from the October
1, 1999 inception of the project through September 30, 2005.

To achieve our objective, we reviewed the provisions of the HEA, Title
IV, Part A-2, Chapter 1, Section 402E (20 U.S.C. 1070a-15A); 34 C.F.R.
Part 647; and 34 C.F.R. Parts 74, 75, 77, 79, 82, 85, and 86; and OMB
Circular A-21, Cost Principles for Educational Institutions. We
interviewed federal TRIO office personnel and reviewed documents
provided by the office relevant to the administration of the McNair
program in general and the administration of the McNair project at ISU.
We reviewed TRIO training conference documentation provided by a TRIO
Training grantee to confirm attendance of ISU McNair staff at TRIO
training conferences.

We interviewed ISU officials, including McNair project officials, and
reviewed documents provided by ISU, including (1) organization charts;
(2) McNair grant proposals; (3) McNair Grant Award Notifications; (4)
the ISU Undergraduate Catalog; (5) McNair Annual Performance Reports;
(6) the McNair policies and procedures manual; (7) guidance for
administering federal grants; and (8) Indiana State Board of Accounts
A-133 Single Audit Reports.

We also reviewed budgeted financial documents for the ISU McNair project
for program years 1999-2000 through 2004-2005 and actual expenditure
financial documents for program years 1999-2000 through August 22, 2005.
From the more than 30 accounts listed in each year we categorized the
accounts into personnel and non-personnel expenses and judgmentally
selected accounts from each category of accounts from one of the six
program years to test that ISU properly accounted for McNair project
funds. Among the accounts tested in the personnel category were
\"Sal-Admin, Fiscal\" and \"Medical Insurance.\" The non-personnel
category included \"Lodging, Per Diem,\" \"Registration,\" and
\"Computer Equipment-All O.\"

To determine ISU's compliance with McNair student eligibility
requirements, we judgmentally selected at least 25 percent of students
admitted into the project for each program year from 1999-2000 to
2003-2004 for student file review, which amounted to a total of 58
students. We reviewed student transcripts for all of the students
admitted to the project, including 11 students that were new to the
project in 2004-2005, to determine student eligibility pertaining to
enrollment status. Thus, a total of 69 students were included in this
second review. We did not conduct a full file review for the 11 new
students because they had not completed an entire project year at the
time of our first ISU site visit.

As part of our audit, we also gained an understanding of ISU's system of
internal control over McNair grant funds. Although we did not assess the
adequacy of ISU's system of internal control over McNair grant funds, we
found instances of non-compliance that might have been caused, in part,
by weaknesses in ISU's system of internal control. These weaknesses are
related to ISU's managing of its McNair project funds to determine
whether funds were used (1) to provide services to eligible students;
and (2) for allowable McNair program costs. These weaknesses and
instances of noncompliance are discussed in the AUDIT RESULTS section of
this report.

We performed our audit work at ISU's McNair administrative offices in
Terre Haute, Indiana and our Chicago/Kansas City offices. We held an
exit conference with ISU officials on October 27, 2005. We performed our
audit in accordance with generally accepted government auditing
standards appropriate to the scope of the review described above.

ADMINISTRATIVE MATTERS

Statements that managerial practices need improvements, as well as other
conclusions and recommendations in this report, represent the opinions
of the Office of Inspector General. Determinations of corrective action
to be taken will be made by the appropriate Department of Education
officials.

If you have any additional comments or information that you believe may
have a bearing on the resolution of this audit, you should send them
directly to the following Education Department official, who will
consider them before taking final Departmental action on this audit:

> Dr. Danny A. Harris

Deputy Chief Financial Officer

U.S. Department of Education

Office of the Chief Financial Officer

400 Maryland Avenue, SW

Washington, DC 20202

It is the policy of the U. S. Department of Education to expedite the
resolution of audits by initiating timely action on the findings and
recommendations contained therein. Therefore, receipt of your comments
within 30 days would be appreciated.

In accordance with the Freedom of Information Act (5 U.S.C. § 552),
reports issued by the Office of Inspector General are available to
members of the press and general public to the extent information
contained therein is not subject to exemptions in the Act.

Sincerely,

/s/

> Richard J. Dowd
>
> Regional Inspector General for Audit

Attachment

## Attachment

\[ISU Letterhead\]

December 20, 2005

U.S. Department of Education

Office of Inspector General

111 N. Canal St. STE. 940

Chicago, IL 60606-6503

ATTN: Richard Dowd

Regional Inspector General for Audit

Subject: Draft Audit Report (Control Number ED-OIG/A05F0020)

We are in receipt of the referenced draft audit report in which you
present the results of the audit performed by your office of the Ronald
E. McNair Postbaccalaureate Achievement Program at Indiana State
University conducted August 22, 2005 to September 8, 2005. The audit
covered the grant budget period from October 1, 1999 through September
30, 2005.

As to the audit findings and recommendations included in the draft audit
report we submit the following responses:

**Finding No. 1 -- ISU provided McNair Project Services and Equipment to
Ineligible Students**

ISU provided McNair project services and equipment to ineligible
students. ISU (1) inappropriately provided sophomores with McNair Summer
Research Internships; (2) admitted ineligible students to the McNair
project; (3) inappropriately paid McNair funds to an individual who was
not enrolled at ISU; and (4) allowed non-McNair participants to use
McNair project laptops.

**We concur with the findings**

**Recommendations as stated in the draft report**

We recommend that the Chief Financial Officer (CFO), in conjunction with
the Assistant Secretary for Postsecondary Education, require ISU to:

1.1 Return \$38,714 in federal funds to the Department;

1.2 Develop and implement procedures to ensure that (1) only students
who have completed their sophomore year of study are allowed to
participate in the summer research internships, (2) the documentation
and approval requirements for admittance as an underrepresented group in
a certain academic discipline are met, (3) only students currently
enrolled in a degree program at ISU are participating in ISU's McNair
project, and (4) only those individuals who are currently participating
in the McNair project are allowed to use equipment purchased with McNair
grant funds; and

1.3 Recover or replace three laptop computers that were checked out to
individuals no longer participating in the McNair project.

**ISU Corrective Action Plan**:

1\. Revise current policies, procedures and management controls to
ensure that records

are maintained for all participants to clearly identify eligibility for
participation in: (a)

the program, and (b) program services. These changes have been completed
and are included

in the revised policies and procedures manual and student handbook.

**Supporting documentation for specific recommendations**:

Recommendation 1-2-1 -- Appendix A -- Summer Research Program

Recommendation 1-2-2 -- Appendix B -- Selection of Students

Application Form

Recommendation 1-2-3 -- Appendix C -- Monitoring Students

2\. An orientation will be conducted for members of the Program Advisory
Council to ensure all

members are conversant with participant eligibility guidelines.

3\. Policies, procedures, and management controls to ensure effective
control and accountability

of equipment acquired with federal funds have been developed and are
included in the

revision of the student handbook and policies and procedures manual.

**Supporting documentation for specific recommendations**:

Recommendation 1-2-4 -- Appendix D -- Computer and Technology Loan
Services

4\. The former McNair Scholars involved have been notified in writing
that Indiana

State University (ISU) requests the return of the laptop computer.

**Supporting documentation for specific recommendations**:

Recommendation 1-3 -- Appendix E -- Recovery request letter

5\. ISU School of Graduate Studies has replaced the three laptop
computers with three

newer and better equipped laptop computers as of November 8, 2005.

**Supporting documentation for specific recommendations**:

Recommendation 1-3 -- Appendix F -- Equipment Transfer Summary

**Finding No. 2 - A McNair Official Received a Double Reimbursement**

A McNair official received travel reimbursements for attendance at a
TRIO training conference from two sources: ISU's federal McNair grant
and from a TRIO Training grant awarded to another university.

**We concur with this finding.**

**Recommendations as stated in the draft report:**

We recommend that the CFO, in conjunction with the Assistant Secretary
for Postsecondary Education, require ISU to:

2.1 Return \$170 in federal funds to the Department, and

2.2 Develop and implement procedures to ensure that McNair officials and
participants are not reimbursed twice for the same expenses.

**ISU Corrective Action Plan:**

1\. A formal letter of reprimand has been issued to a McNair official
who received a double

reimbursement.

2\. All TRIO program staff members were informed that they can only use
grant funds for

allowable travel expenses and that a duplicate payment cannot be
considered an allowable

expense. All new employees of the TRIO program will be informed of
allowable travel

expenses.

3\. ISU has established a receivable in the amount of \$170.00 for the
duplicate reimbursement

for travel expenses.

**Note: Appendixes A-D are sections of the policies and procedures
handbook that have been either revised or are additions to the existing
polices and procedures handbook.**

Please let me know if additional information is necessary.

Sincerely,

/s/

Lloyd W. Benjamin III

President

Encls.

APPENDIX A

**F. Summer Research Program**

-   Out of the 20 Scholars in the program, 13 are given the opportunity
    to participate in the Summer Research Program. Scholars are selected
    based upon their Summer Research Proposal, Seniority, Availability
    and approval from the McNair Advisory Board.

> Students allowed to participate in the McNair Summer Research
> Experience will be in accordance with *HEA 647.10 (b) Each participant
> given a summer research internship will have completed his or her
> sophomore year of study; and...*
>
> according to ISU handbook must have earned 62 semester hours prior to
> participation.

-   Scholars who participate in the Summer Research Experience must be
    enrolled in a course during the session in which the research is
    being conducted. The academic fees for the course in which the
    scholars are enrolled is paid for by ISU in part of the In-kind
    contribution.

APPENDIX B

### IV. SELECTION OF SCHOLARS

**A. Eligibility Determination**

-   Develop Individual Profile on each applicant for review of McNair
    staff and McNair selection committee. (Appendix, B-1)

-   Determine First Generation Status by referring to the section
    entitled "Parents Information" on the McNair Application (Appendix,
    A-2).

-   Document and address low-income status by determining family size
    and income levels utilizing tax returns for the previous year or
    university documentation supporting income levels, and referring to
    the appropriate year Federal Trio Programs Annual Low Income Levels
    form (Appendix B-4).

-   Determine Eligibility Status: This will be done by first determining
    the applicants ethnicity as reported on section I of the application
    and then determining if the applicant is considered under
    represented in graduate education according to HEA Title 34, Part
    647.3 which states;

A student is eligible to participate in a McNair project if the student
meets all the following requirements:

(a)(1) Is a citizen or national of the United States; or

\(2\) Is a permanent resident of the United States; or

\(3\) Is in the United States for other than a temporary purpose and
provides evidence from the Immigration and Naturalization Service of his
or her intent to become a permanent resident; or

\(4\) Is a permanent resident of Guam, the Northern Mariana Islands, or
the Trust Territory of the Pacific Islands; or

\(5\) Is a resident of one of the Freely Associated States.

\(b\) Is currently enrolled in a degree program at an institution of
higher education that participates in the student financial assistance
programs authorized under Title IV of the HEA.

\(c\) Is\--

\(1\) A low-income individual who is a first-generation college student;

\(2\) A member of a group that is underrepresented in graduate
education; or

\(3\) A member of a group that is not listed in Sec. 647.7 if the group
is underrepresented in certain academic disciplines as documented by
standard statistical references or other national survey data

submitted to and accepted by the Secretary on a case-by-case basis.

(***647.7; Groups underrepresented in graduate education. The following
ethnic***

***and racial groups are currently underrepresented in graduate
education:***

***Black (non-Hispanic), Hispanic, and American Indian/Alaskan
Native***.)

\(d\) Has not enrolled in doctoral level study at an institution of
higher education.

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height="0.45551181102362204in"}![](media/image1.wmf){width="1.000787401574803in"
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**Indiana State University**

Attach Photo College of Business, Suite 423 (required) Terre Haute, IN
47809

> 812-237-8315

**Deadline for Application: March 10, 2006**

(Please type or print legibly in ink)

**I. Personal Data**

Name
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
Last First MI

Current Address
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Street City Zip

Current Telephone ( \_\_\_\_ )
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Permanent Address
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Street City Zip

Permanent Telephone ( \_\_\_\_ )
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Social Security Number (ID) \_\_\_\_\_\_\_ - \_\_\_\_\_ - \_\_\_\_\_\_\_
Date of Birth \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Mo. Day Yr.

E-mail
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Gender:

Male U.S. Citizenship: Yes No

Female Other (Specify)

Ethnic Background: Asian American African American (Black)

> Caucasian Hispanic/ Latino
>
> Puerto Rican Pacific Islander (Specify country \_\_\_\_\_)
>
> Native American/Alaskan Native
>
> If Native American, list tribe affiliation
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> Other

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

**III. Family Information**

For financial aid and purposes, you are considered: Dependent
Independent

**If dependent**, complete the questions below in Section A.

**If independent**, skip to Section B.

**Section A**

What is the size of your parents' household, including yourself?
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Did your parents file a federal income tax return for 2001? Yes No

If yes, what was their 2001 taxable income?
\$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(IRS Form 1040: line 39, Form 1040A: line 25, Form 1040EZ: line 6)

If your answer is no, place a "0" on the line above for taxable income.

**If independent**, complete the sections below in Section B.

**Section B**

What is the size of your household; include yourself, spouse, and/or
other dependents? \_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Did you file a federal income tax return for 2001? Yes No

If yes, what was your 2001 taxable income?
\$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(IRS Form 1040: line 39, Form 1040A: line 25, Form 1040EZ: line 6)

If your answer is no, place a "0" on the line above for taxable income.

\*\* Please attach a photocopy of the appropriate federal tax form. If
2001 taxes have not been filed, submit a copy of 2000 tax return.

Does your family receive assistance from any of the following sources?

Aid to family with Dependent Children (AFDC) Yes No

Social Security Yes No

Veteran's Benefits Yes No

Food Stamps Yes No

Unemployment Compensation Yes No

Other (Specify)
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Are you currently receiving financial aid? Yes No

If yes, please attach a copy of your most recent financial aid form to
this application. Acceptable documentation includes a photocopy of your
most recent FAFSA or Student Aid Report (SAR).

Are you currently employed?

If yes, how many hours per week do you
work?\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Supervisor's
name\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Work
Phone\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

**IV. Parent (s) Information, Or Primary Caregiver**

Who was your primary caregiver (who did you live with) while attending
school:

Mother Father Both parents Other
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(specify)

Education Attainment of mother:

Highest Grade Completed 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

High school diploma: Yes No GED: Yes No

College Degree earned (if any). Circle appropriate response: bachelors
masters doctorate

Educational attainment of father:

Highest grade completed 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

High school diploma Yes No GED Yes No

College Degree earned (if any). Circle appropriate response: bachelors
masters doctorate

Educational attainment of caregiver:

Highest grade completed 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

High school diploma Yes No GED Yes No

College Degree earned (if any). Circle appropriate response: bachelors
masters doctorate

I affirm to the best of my knowledge that the information I have
provided is accurate and true.

Signature\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_Date\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

APPENDX C

**E. Academic Monitoring**

-   Monitor enrollment in courses during semesters in which student is
    receiving services from program and assure that students are
    eligible in accordance with HEA 34 CFR 647.3 (b) which states:

*A student is eligible to participate in a McNair project if the student
meets all the following requirements: ...*

*(b) Is currently enrolled in a degree program at an institution of
higher education that participates in the student financial assistance
programs authorized under Title IV of the HEA.*

-   Monitor grades to assure that the students are maintaining academic
    standards consistent with gaining entry into graduate school. (Goal
    of above 3.0)

> Students who do not maintain the minimum of 3.0 GPA are put on
> academic probation in the program. During academic probation, students
> are allowed to attend seminars, but not receive stipends nor
> participate in the Summer Research Experience.

-   Records will be kept for each participant in accordance with HEA 34
    CFR 647.32 (b) which states;

*(b) Recordkeeping. For each student, a grantee shall maintain a record
of\--*

*(1) The basis for the grantee\'s determination that the student is
eligible to participate in the project under Sec. 647.3;*

*(2) The individual needs assessment;*

*(3) The services provided to the participant; and*

*(4) The specific educational progress made by the student during and
after participation in the project.*

APPENDIX D

**H. Computer and Technology Loan Services**

-   Each scholar is given the opportunity to check-out technology on a
    temporary loan basis The technology provided is intended only for
    Active Participating McNair Scholar's to use in scholarly related
    activities. The scholar should return the technology in good
    condition. Scholars are responsible for stolen, lost or damaged
    items.

-   All equipment will be utilized in accordance with HEA 34 CFR 74.34
    (c);

*(c) The recipient shall use the equipment in the project or program for
which it was acquired as long as needed, whether or not the project or
program continues to be supported by Federal funds and may not encumber
the property without approval of the Secretary. When no longer needed
for the original project or program, the recipient shall use the
equipment in connection with its other federally-sponsored activities,
in the following order of priority:*

*(1) Activities sponsored by the Federal awarding agency which funded*

*the original project; and then*

*(2) Activities sponsored by other Federal awarding agencies.*

> **(The use of computers, computer software, and file sharing programs
> on university owned computers will follow all university guidelines,
> which can be found in the University Handbook, updated October 2005,
> beginning on page V-12)**

-   Check-Out Duration:

Computers: During Academic Year -21 days, During Summer Research
Program - 7 days

Camera, Projector, Video Recorder: 24 hours

-   Each item checked out must be done by a McNair Staff member
    (Director, Coordinator, Administrative Assistant, or Graduate
    Student) utilizing the Equipment Check-Out Form (Appendix D-1). The
    check-out form must be signed by the staff person and student
    checking the device out. Staff members are to assure that the
    scholar understands that the device is on a loan basis and should be
    returned by the date stated on the check-out form. Students who do
    not adhere to the check-out duration limits are subject to
    suspension of their technology loan privileges.

McNair Achievement Program Computer and Technology Loan

**Laptop/accessories Item Number Check List**

  ------------------------------------------------------- ---------------
  3.5" Floppy Drive                                       

  CD Drive                                                

  DVD Drive                                               

  Zip Drive                                               

  128 MB USB Flash-Drive                                  

  56K Modem Card                                          

  Ethernet Card                                           

  Wireless Card                                           

  Rechargeable Battery                                    

  Power Cable                                             

  Carrying Case                                           
  ------------------------------------------------------- ---------------

**** **Digital Camera**

  ------------------------------------------------------- ---------------
  Power Cable                                             

  Memory Stick                                            

  USB Connector Cable                                     

  Carrying Case                                           
  ------------------------------------------------------- ---------------

**LCD Projector**

  ------------------------------------------------------- ---------------
  RCA/Video/Audio Cable                                   

  Serial Port Connector Cable                             

  Power Cable                                             

  Remote Control                                          

  Carrying Case                                           
  ------------------------------------------------------- ---------------

Digital Video Camera

  ------------------------------------------------------- ---------------
  USB Connector Cable                                     

  Power Cable                                             

  Remote Control                                          

  RCA/Video/Audio Cable                                   

  DV Cassette                                             
  ------------------------------------------------------- ---------------

**Check-Out Duration:**

**Computers:** During Academic Year -21 days, During Summer Research
Program - 7 days

**Camera, Projector, Video Recorder**: 24 hours; academic year and
summer.

**Terms and Conditions:**

The technology provided is intended for Active Participating McNair
Scholar's to use in scholarly related activities. The scholar should
return the technology in good condition. Scholars may be held
responsible for stolen, lost or damaged items.

(The use of computers, computer software, and file sharing programs on
university owned computers will follow all university guidelines, which
can be found in the University Handbook, October 2005, beginning on page
V-12)

McNair Scholar Signature: ­­­­­­­­­
­­\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Date:
\_\_\_\_\_\_\_\_

Staff Signature: ­­­­­­­­
­­\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Date:
\_\_\_\_\_\_\_\_

Expected Date of Return: \_\_\_\_\_\_\_\_

Returned Date: \_\_\_\_\_\_\_\_ Staff Signature:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

APPENDIX E

September 15, 2005

Dear.,

I am writing to you in an attempt to retrieve the Dell Laptop Computer
that was inadvertently given to you in January 2001. These computers
were purchased with funds from a Federal Government grant and should
have been restricted to utilization by McNair Scholars while they are
enrolled in the program at Indiana State University.

It has been brought to the attention of the Indiana State University
McNair Program, during a recent audit by the Federal Department of
Education (DOE) that since you are no longer enrolled in the McNair
program at ISU, your possession of the laptop computer purchased by the
ISU McNair Program is in violation of Federal Government regulations.
Under these circumstances, we are hereby requesting that the laptop be
returned immediately the ISU McNair Program.

In order for the ISU McNair Program to remain in good-standing with the
DOE, we need your assistance in returning the laptop as soon as
possible, but no later than September 30, 2005. Please contact me at
(812)237-8362 or by email at so that we can arrange for the laptop
computer to be returned to the ISU McNair Program as quickly as
possible. Upon the receipt of the laptop from you, it will be used by
current McNair Scholars on a weekly loan basis and will continue to be
utilized in accordance with the DOE Federal regulations.

I sincerely apologize for any inconvenience that this may cause you and
hope that you will understand the seriousness of this matter and return
the laptop computer. Thank you in advance for your patience,
understanding and cooperation.

Sincerely,

McNair Program Coordinator

Indiana State University

Terre Haute, IN. 47809

APPENDIX F

+------+-----+-----------+----------+-----------+-----+------+------+
| IND  |     |           |          |           |     |      |      |
| IANA |     |           |          |           |     |      |      |
| S    |     |           |          |           |     |      |      |
| TATE |     |           |          |           |     |      |      |
| UN   |     |           |          |           |     |      |      |
| IVER |     |           |          |           |     |      |      |
| SITY |     |           |          |           |     |      |      |
|      |     |           |          |           |     |      |      |
| Comp |     |           |          |           |     |      |      |
| uter |     |           |          |           |     |      |      |
| Tran |     |           |          |           |     |      |      |
| sfer |     |           |          |           |     |      |      |
| Sum  |     |           |          |           |     |      |      |
| mary |     |           |          |           |     |      |      |
|      |     |           |          |           |     |      |      |
| Grad |     |           |          |           |     |      |      |
| uate |     |           |          |           |     |      |      |
| Sc   |     |           |          |           |     |      |      |
| hool |     |           |          |           |     |      |      |
| to   |     |           |          |           |     |      |      |
| Mc   |     |           |          |           |     |      |      |
| Nair |     |           |          |           |     |      |      |
| Pro  |     |           |          |           |     |      |      |
| gram |     |           |          |           |     |      |      |
+------+-----+-----------+----------+-----------+-----+------+------+
|      |     |           |          |           |     |      |      |
+------+-----+-----------+----------+-----------+-----+------+------+
| 0138 | 0   | PC, DELL  | GQ26701  | DELL      | SB0 | .    | \$   |
| 564X | 138 | LATITUDE  |          |           | 423 |      | 2,18 |
|      | 564 | CPxJ650GT |          |           |     |      | 8.20 |
+------+-----+-----------+----------+-----------+-----+------+------+
| 0138 | 0   | POCKET PC | 4611     | COMPAQ    | SB0 | .    | \$   |
| 877X | 138 | IPAQ WITH | DW36W27V |           | 423 |      | 97   |
|      | 877 | AC        |          |           |     |      | 8.00 |
|      |     | CESSORIES |          |           |     |      |      |
+------+-----+-----------+----------+-----------+-----+------+------+
| 0138 | 0   | POCKET    | 4611     | COMPAQ    | SB0 | .    | \$   |
| 878X | 138 | PC, IPAQ  | DW362281 |           | 423 |      | 97   |
|      | 878 | WITH      |          |           |     |      | 8.00 |
|      |     | AC        |          |           |     |      |      |
|      |     | CESSORIES |          |           |     |      |      |
+------+-----+-----------+----------+-----------+-----+------+------+
| 014  | 0   | PC, DELL  | 5VLVW01  | DELL      | SB0 | P003 | \$   |
| 0809 | 140 | LAPTOP    |          | MARKETING | 423 | 7331 | 3,37 |
|      | 809 |           |          |           |     |      | 5.49 |
+------+-----+-----------+----------+-----------+-----+------+------+
| 014  | 0   | PC, DELL  | 68M1L11  | DELL      | SB0 | P004 | \$   |
| 2353 | 142 | LATITUDE  |          | MARKETING | 423 | 0673 | 3,41 |
|      | 353 | C840      |          |           |     |      | 3.60 |
+------+-----+-----------+----------+-----------+-----+------+------+
|      |     |           |          |           |     |      |      |
+------+-----+-----------+----------+-----------+-----+------+------+
|      | Equ |           |          |           |     |      |      |
|      | ipm |           |          |           |     |      |      |
|      | ent |           |          |           |     |      |      |
|      | tr  |           |          |           |     |      |      |
|      | ans |           |          |           |     |      |      |
|      | fer |           |          |           |     |      |      |
|      | red |           |          |           |     |      |      |
|      | as  |           |          |           |     |      |      |
|      | of  |           |          |           |     |      |      |
|      | No  |           |          |           |     |      |      |
|      | vem |           |          |           |     |      |      |
|      | ber |           |          |           |     |      |      |
|      | 8,  |           |          |           |     |      |      |
|      | 2   |           |          |           |     |      |      |
|      | 005 |           |          |           |     |      |      |
+------+-----+-----------+----------+-----------+-----+------+------+

[^1]: The Department's National Center for Education Statistics,
    Integrated Postsecondary Education Data System, Fall 2002 survey,
    Table 271, titled "Doctor's degrees conferred by degree-granting
    institutions, by sex, racial/ethnic group, and major field of study:
    2001-02," indicates that female, white, non-Hispanic students were
    the largest group surveyed (266 of 843 or 31.5 percent) for one
    student's major field of study, foreign languages and literatures.
    For the other student's major field of study, social sciences and
    history, female, white, non-Hispanic students (1,119 of 3,902 or
    28.7 percent) were second only to male, white, non-Hispanic
    students.