Planning Federal Materiality by Compliance Requirement (6) CFAE included the typical monetary vs. nonmonetary determinations for each compliance requirement in this program. However, auditors should tailor these assessments as appropriate based on the facts and circumstances of their entity’s operations. See further guidance below. (1) (2) (6) (6) (3) (4) (5) (5) (6) Compliance Requirement Applicable per Compl. Suppl. Direct & material to program / entity Monetary or If monetary, population subject to require. Inherent risk (IR) assess. Final control risk (CR) assess. Detection risk of noncompl. Overall audit risk of noncompl. Federal materiality by compl. requirement (Yes or No) (Yes or No) (M/N) (Dollars) (High/Low) (High/Low) (High/Low) (High/Low) typically 5% of population subject to requirement A Activities Allowed or Unallowed Yes M 5% B Allowable Costs/Cost Principles No C Cash Management Yes N 5% D RESERVED E Eligibility Yes M/N 5% F Equipment & Real Property Mgmt No G Matching, Level of Effort, Earmark Yes M 5% H Period of Availability (Performance) Yes M 5% I Procurement & Sus. & Debarment No J Program Income Yes M 5% K RESERVED L Reporting Yes N 5% M Subrecipient Monitoring No N Special Tests & Provisions - Verification Yes N 5% N Special Tests & Provisions - Disbursements to or on Behalf of Students Yes M 5%
accepted for enrollment in an eligible program (34 CFR sections 600.2, 668.32, 690.75, 675.9, 676.9, 674.9, 685.200, 20 USC 1070h; 42 CFR sections 57.206(a) and 57.306(a), 42 USC 293a(d)(2)) 2. U.S. Citizen or National (34 CFR sections 668.32, 690.75, 675.9, 676.9, 674.9, 685.200, and 20 USC 1070h) AND for HPL/PCL/LDS, an alien lawfully admitted for permanent residence in the U.S. or a citizen of the Commonwealth of the Northern Mariana Islands, the Republic of Palau, the Republic of the Marshall Islands, or of the Federated States of Micronesia (42 CFR sections 57.206(a) and 57.306(a)) x x x x x x x x x x 3. Has financial need and total awards do not exceed need (34 CFR 675.9, 676.9, 674.9, 685.200, 42 CFR sections 57.206 and 57.306 (b); 42 USC 293a(d)(2)) x x x x x x x x 4. Does not owe a refund on a grant awarded under the Federal Pell Grant, or FSEOG programs (34 CFR sections 668.32, 690.75, 675.9, 676.9, 674.9, 685.200, 20 USC 1070h; 42 CFR sections 57.206 and 57.306) x x x x x x x 5. Not in default on any student loans (34 CFR sections 668.32, 690.75, 675.9, 676.9, 674.9, 685.200, 20 USC 1070h; 42 CFR sections 57.206 and 57.306) x x x x x x x x x 6. Must maintain good standing, or satisfactory progress (34 CFR x x x x x x x x x x
sections 668.16, 668.32, 668.34, 690.75, 675.9, 676.9, 674.9, 685.200, 20 USC 1070h; 42 CFR section 57.306; 42 USC 293a(d)(2)) 7. Has registered under Section 3 of the Military Selective Service Act (34 CFR sections 668.32, 668.37, 690.75, 675.9, 676.9, 674.9, 685.200,20 USC 1070h; 42 CFR section, 57.206(a)(1)(iv)) x x x x x x x x 8. Has a valid Social Security Number (34 CFR sections 668.32, 690.75, 675.9, 676.9, 674.9, 685.200, 20 USC 1070h) x x x x x x x 9. High School Diploma or its recognized equivalent (34 CFR sections 668.32, 690.75, 675.9, 676.9, 674.9, 685.200, 20 USC 1070h) x x x x x x x 10. Above the age of compulsory school attendance in the State in which the institution he or she is attending is located (34 CFR sections 600.2, 600.4, 600.6, 690.75, 675.9, 676.9, 674.9, 685.200, 20 USC 1070h) x x x x x x 11. Reserved 12. Not been convicted of an offense involving the possession or sale of illegal drugs (34 CFR sections 668.32(l), 668.40, 20 USC 1070h) x x x x x x x 13. In need of a loan (scholarship) to pursue a course of study at the school (42 CFR sections 57.206(a) and 57.306(a)) x x x 14. An undergraduate student has received for award year, a SAR or determination of eligibility or x x x
ineligibility for a Federal Pell Grant (34 CFR sections 674.9, 690.75, 20 USC 1070h) 15. Is not incarcerated (34 CFR section 668.32) x x 16. Enrolled, as at least a half-time student, in a course of study necessary for enrollment in an eligible program for not longer than one 12-month period (34 CFR section 668.32) x 17. Parents can receive a PLUS loan if items 2, 4, and 5 above are met (34 CFR sections 685.200) x 18. Student is willing to repay the loan (34 CFR section 674.9); student is required to repay (42 CFR sections 57.210 and 57.310) x 19. Students met FSEOG selection criteria (34 CFR section 676.10) x 20. Has submitted a completed application (34 CFR section 686.11) x 21. Has signed an agreement to serve (34 CFR sections 686.11 and 668.12) x 22. Is enrolled in a TEACH institution in a TEACH Grant-eligible program (34 CFR section 686.11) x 23. Is completing coursework and other requirements necessary to begin a career in teaching or plans to complete such coursework and requirements prior to graduating (34 CFR section 686.11(a)) x