Audit 289758

FY End
2023-06-30
Total Expended
$21.76M
Findings
10
Programs
23
Organization: Shawnee State University (OH)
Year: 2023 Accepted: 2024-02-09

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
366759 2023-002 Material Weakness Yes N
366760 2023-002 Material Weakness Yes N
366761 2023-003 Material Weakness Yes N
366762 2023-003 Material Weakness Yes N
366763 2023-004 Material Weakness - N
943201 2023-002 Material Weakness Yes N
943202 2023-002 Material Weakness Yes N
943203 2023-003 Material Weakness Yes N
943204 2023-003 Material Weakness Yes N
943205 2023-004 Material Weakness - N

Contacts

Name Title Type
LHJGNFRKQ6J9 Greg Ballengee Auditee
7403513574 Keith Martinez Auditor
No contacts on file

Notes to SEFA

Title: Federal Work Study and Federal SEOG Waiver Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Shawnee State University (the “University”) and its discretely presented component unit, Shawnee State University Development Foundation, under programs of the federal government for the year ended June 30, 2023. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the “Uniform Guidance”). Because the Schedule presents only a selected portion of the operations of the University, it is not intended to and does not present the financial position, changes in net position, or cash flows of the University. Expenditures reported in the Schedule are reported on same basis of accounting as the basic financial statements. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The pass through entity identifying numbers are presented where available. The University has elected to use the 10 percent de minimis indirect cost rate to recover indirect costs, as allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The University has elected to use the 10 percent de minimis indirect cost rate to recover indirect costs, as allowed under the Uniform Guidance. For the year ended June 30, 2023, the University received a waiver from the U.S. Department of Education for the institutional share requirement under the Federal Work Study and Federal Supplemental Educational Opportunity Grant (SEOG) programs.
Title: Federal Direct Loan Program Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Shawnee State University (the “University”) and its discretely presented component unit, Shawnee State University Development Foundation, under programs of the federal government for the year ended June 30, 2023. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the “Uniform Guidance”). Because the Schedule presents only a selected portion of the operations of the University, it is not intended to and does not present the financial position, changes in net position, or cash flows of the University. Expenditures reported in the Schedule are reported on same basis of accounting as the basic financial statements. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The pass through entity identifying numbers are presented where available. The University has elected to use the 10 percent de minimis indirect cost rate to recover indirect costs, as allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The University has elected to use the 10 percent de minimis indirect cost rate to recover indirect costs, as allowed under the Uniform Guidance. The University participates in the William D. Ford Direct Loan Program. The University originates the loans, which are then funded through the U.S. Department of Education.

Finding Details

Assistance Listing Number, Federal Agency, and Program Name - ALNs 84.063 and 84.268; Department of Education; Federal Pell Grant Program and Federal Direct Loan Program Federal Award Identification Number and Year - N/A Pass through Entity - N/A Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - Yes - 2022 001 Criteria - Returns of Title IV funds are required to be deposited or transferred into the SFA account or electronic fund transfers initiated to the Department of Education (ED) as soon as possible, but no later than 45 days after the date the institution determines that the student withdrew (34 CFR 668.173(b)). Condition - The University did not return Title IV funds to the Department of Education within the required time frame for certain students who required a return of funds, and it did not initially identify all students who required a return of Title IV funds. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - Of the 25 withdrawn students tested for proper return of Title IV funds, the funds for 3 students requiring a return were not returned to ED by the University within the required time frame. The 3 errors identified were for the fall 2022 and spring 2023 term. Cause and Effect - The University had a change in system and it changed the process for exporting withdrawal reports. This led to returns of Title IV funds to ED being completed outside the required time frame, and/or students who required a return of Title IV funds were missed. Recommendation - We recommend that the University institute a process to ensure that all returns of Title IV aid are calculated and returned within the required time frame. Views of Responsible Officials and Corrective Action Plan - Shawnee State University will perform a comprehensive review of financial aid procedures (including review of financial aid processing, personnel responsibilities, and system modifications) and make revisions to workflows to prevent future occurrence of this finding. A review of activity prior to implementation of revised procedures will be conducted, and any exceptions will be documented and corrected.
Assistance Listing Number, Federal Agency, and Program Name - ALNs 84.063 and 84.268; Department of Education; Federal Pell Grant Program and Federal Direct Loan Program Federal Award Identification Number and Year - N/A Pass through Entity - N/A Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - Yes - 2022 001 Criteria - Returns of Title IV funds are required to be deposited or transferred into the SFA account or electronic fund transfers initiated to the Department of Education (ED) as soon as possible, but no later than 45 days after the date the institution determines that the student withdrew (34 CFR 668.173(b)). Condition - The University did not return Title IV funds to the Department of Education within the required time frame for certain students who required a return of funds, and it did not initially identify all students who required a return of Title IV funds. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - Of the 25 withdrawn students tested for proper return of Title IV funds, the funds for 3 students requiring a return were not returned to ED by the University within the required time frame. The 3 errors identified were for the fall 2022 and spring 2023 term. Cause and Effect - The University had a change in system and it changed the process for exporting withdrawal reports. This led to returns of Title IV funds to ED being completed outside the required time frame, and/or students who required a return of Title IV funds were missed. Recommendation - We recommend that the University institute a process to ensure that all returns of Title IV aid are calculated and returned within the required time frame. Views of Responsible Officials and Corrective Action Plan - Shawnee State University will perform a comprehensive review of financial aid procedures (including review of financial aid processing, personnel responsibilities, and system modifications) and make revisions to workflows to prevent future occurrence of this finding. A review of activity prior to implementation of revised procedures will be conducted, and any exceptions will be documented and corrected.
Assistance Listing Number, Federal Agency, and Program Name - ALNs 84.063 and 84.268; Department of Education; Federal Pell Grant Program and Federal Direct Loan Program Federal Award Identification Number and Year - N/A Pass through Entity - N/A Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - Yes - 2022 002 Criteria - Federal Pell Grant Program: An institution shall submit, in accordance with deadline dates established by the secretary, through publication in the Federal Register, other reports and information the secretary requires and shall comply with the procedures the secretary finds necessary to ensure that the reports are correct (34 CFR Section 690.83(b)(2)). Federal Direct Student Loans: Changes in student status are required to be reported to the National Student Loan Data System (NSLDS) within 30 days of the change or included in a Student Status Confirmation Report (SSCR) sent to the NSLDS within 60 days of the status change (34 CFR Section 685.309(b)). Condition - Shawnee State University did not report student status changes timely and accurately for certain students who withdrew during the year. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - Of the 25 students tested for student change status, 5 student status changes were not submitted within the required time frame and were not properly reported as withdrawn. Cause and Effect - The University did not have a process in place in order to ensure timely and proper reporting for all student status changes. As a result, there were instances of reporting outside of the required time frame and instances where reporting was incorrect. Recommendation - We recommend that the University put a control process in place in order to ensure all student status changes are reported timely and accurately. Views of Responsible Officials and Planned Corrective Actions - Shawnee State University will perform a comprehensive review of financial aid procedures (including review of financial aid processing, personnel responsibilities, and system modifications) and make revisions to workflows to prevent future occurrence of this finding. A review of activity prior to implementation of revised procedures will be conducted, and any exceptions will be documented and corrected.
Assistance Listing Number, Federal Agency, and Program Name - ALNs 84.063 and 84.268; Department of Education; Federal Pell Grant Program and Federal Direct Loan Program Federal Award Identification Number and Year - N/A Pass through Entity - N/A Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - Yes - 2022 002 Criteria - Federal Pell Grant Program: An institution shall submit, in accordance with deadline dates established by the secretary, through publication in the Federal Register, other reports and information the secretary requires and shall comply with the procedures the secretary finds necessary to ensure that the reports are correct (34 CFR Section 690.83(b)(2)). Federal Direct Student Loans: Changes in student status are required to be reported to the National Student Loan Data System (NSLDS) within 30 days of the change or included in a Student Status Confirmation Report (SSCR) sent to the NSLDS within 60 days of the status change (34 CFR Section 685.309(b)). Condition - Shawnee State University did not report student status changes timely and accurately for certain students who withdrew during the year. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - Of the 25 students tested for student change status, 5 student status changes were not submitted within the required time frame and were not properly reported as withdrawn. Cause and Effect - The University did not have a process in place in order to ensure timely and proper reporting for all student status changes. As a result, there were instances of reporting outside of the required time frame and instances where reporting was incorrect. Recommendation - We recommend that the University put a control process in place in order to ensure all student status changes are reported timely and accurately. Views of Responsible Officials and Planned Corrective Actions - Shawnee State University will perform a comprehensive review of financial aid procedures (including review of financial aid processing, personnel responsibilities, and system modifications) and make revisions to workflows to prevent future occurrence of this finding. A review of activity prior to implementation of revised procedures will be conducted, and any exceptions will be documented and corrected.
Assistance Listing Number, Federal Agency, and Program Name - ALNs 84.268; Department of Education; Federal Direct Loan Program Federal Award Identification Number and Year - N/A Pass through Entity - N/A Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - If a student account is credited with Federal Direct Loans (FDL), the institution must notify the student or parent of date and amount as well as the right to cancel all or portion of loan, and the procedure and time by which the student must notify the institution no earlier than 30 days before and no later than 30 days after crediting student’s account if using an affirmative confirmation process (34 CFR Section 68.165). Condition - The University did not timely notify the student or parent within 30 days of crediting the student's account with Federal Direct Loans. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - Of the 21 students tested for FDL notification, notifications for 16 students were not timely communicated within the required time frame. Cause and Effect - The University did not have a process in place to ensure notifications were sent out in the required time frame. Recommendation - We recommend that the University institute a process to ensure that all notifications are sent within the required time frame. Views of Responsible Officials and Planned Corrective Actions - When posting direct loans to the student's account, we will add a touchpoint to the student's record. This automatically sends an email to the student. We will mail a notification to the parent in the case of a Parent Plus loan.
Assistance Listing Number, Federal Agency, and Program Name - ALNs 84.063 and 84.268; Department of Education; Federal Pell Grant Program and Federal Direct Loan Program Federal Award Identification Number and Year - N/A Pass through Entity - N/A Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - Yes - 2022 001 Criteria - Returns of Title IV funds are required to be deposited or transferred into the SFA account or electronic fund transfers initiated to the Department of Education (ED) as soon as possible, but no later than 45 days after the date the institution determines that the student withdrew (34 CFR 668.173(b)). Condition - The University did not return Title IV funds to the Department of Education within the required time frame for certain students who required a return of funds, and it did not initially identify all students who required a return of Title IV funds. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - Of the 25 withdrawn students tested for proper return of Title IV funds, the funds for 3 students requiring a return were not returned to ED by the University within the required time frame. The 3 errors identified were for the fall 2022 and spring 2023 term. Cause and Effect - The University had a change in system and it changed the process for exporting withdrawal reports. This led to returns of Title IV funds to ED being completed outside the required time frame, and/or students who required a return of Title IV funds were missed. Recommendation - We recommend that the University institute a process to ensure that all returns of Title IV aid are calculated and returned within the required time frame. Views of Responsible Officials and Corrective Action Plan - Shawnee State University will perform a comprehensive review of financial aid procedures (including review of financial aid processing, personnel responsibilities, and system modifications) and make revisions to workflows to prevent future occurrence of this finding. A review of activity prior to implementation of revised procedures will be conducted, and any exceptions will be documented and corrected.
Assistance Listing Number, Federal Agency, and Program Name - ALNs 84.063 and 84.268; Department of Education; Federal Pell Grant Program and Federal Direct Loan Program Federal Award Identification Number and Year - N/A Pass through Entity - N/A Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - Yes - 2022 001 Criteria - Returns of Title IV funds are required to be deposited or transferred into the SFA account or electronic fund transfers initiated to the Department of Education (ED) as soon as possible, but no later than 45 days after the date the institution determines that the student withdrew (34 CFR 668.173(b)). Condition - The University did not return Title IV funds to the Department of Education within the required time frame for certain students who required a return of funds, and it did not initially identify all students who required a return of Title IV funds. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - Of the 25 withdrawn students tested for proper return of Title IV funds, the funds for 3 students requiring a return were not returned to ED by the University within the required time frame. The 3 errors identified were for the fall 2022 and spring 2023 term. Cause and Effect - The University had a change in system and it changed the process for exporting withdrawal reports. This led to returns of Title IV funds to ED being completed outside the required time frame, and/or students who required a return of Title IV funds were missed. Recommendation - We recommend that the University institute a process to ensure that all returns of Title IV aid are calculated and returned within the required time frame. Views of Responsible Officials and Corrective Action Plan - Shawnee State University will perform a comprehensive review of financial aid procedures (including review of financial aid processing, personnel responsibilities, and system modifications) and make revisions to workflows to prevent future occurrence of this finding. A review of activity prior to implementation of revised procedures will be conducted, and any exceptions will be documented and corrected.
Assistance Listing Number, Federal Agency, and Program Name - ALNs 84.063 and 84.268; Department of Education; Federal Pell Grant Program and Federal Direct Loan Program Federal Award Identification Number and Year - N/A Pass through Entity - N/A Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - Yes - 2022 002 Criteria - Federal Pell Grant Program: An institution shall submit, in accordance with deadline dates established by the secretary, through publication in the Federal Register, other reports and information the secretary requires and shall comply with the procedures the secretary finds necessary to ensure that the reports are correct (34 CFR Section 690.83(b)(2)). Federal Direct Student Loans: Changes in student status are required to be reported to the National Student Loan Data System (NSLDS) within 30 days of the change or included in a Student Status Confirmation Report (SSCR) sent to the NSLDS within 60 days of the status change (34 CFR Section 685.309(b)). Condition - Shawnee State University did not report student status changes timely and accurately for certain students who withdrew during the year. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - Of the 25 students tested for student change status, 5 student status changes were not submitted within the required time frame and were not properly reported as withdrawn. Cause and Effect - The University did not have a process in place in order to ensure timely and proper reporting for all student status changes. As a result, there were instances of reporting outside of the required time frame and instances where reporting was incorrect. Recommendation - We recommend that the University put a control process in place in order to ensure all student status changes are reported timely and accurately. Views of Responsible Officials and Planned Corrective Actions - Shawnee State University will perform a comprehensive review of financial aid procedures (including review of financial aid processing, personnel responsibilities, and system modifications) and make revisions to workflows to prevent future occurrence of this finding. A review of activity prior to implementation of revised procedures will be conducted, and any exceptions will be documented and corrected.
Assistance Listing Number, Federal Agency, and Program Name - ALNs 84.063 and 84.268; Department of Education; Federal Pell Grant Program and Federal Direct Loan Program Federal Award Identification Number and Year - N/A Pass through Entity - N/A Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - Yes - 2022 002 Criteria - Federal Pell Grant Program: An institution shall submit, in accordance with deadline dates established by the secretary, through publication in the Federal Register, other reports and information the secretary requires and shall comply with the procedures the secretary finds necessary to ensure that the reports are correct (34 CFR Section 690.83(b)(2)). Federal Direct Student Loans: Changes in student status are required to be reported to the National Student Loan Data System (NSLDS) within 30 days of the change or included in a Student Status Confirmation Report (SSCR) sent to the NSLDS within 60 days of the status change (34 CFR Section 685.309(b)). Condition - Shawnee State University did not report student status changes timely and accurately for certain students who withdrew during the year. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - Of the 25 students tested for student change status, 5 student status changes were not submitted within the required time frame and were not properly reported as withdrawn. Cause and Effect - The University did not have a process in place in order to ensure timely and proper reporting for all student status changes. As a result, there were instances of reporting outside of the required time frame and instances where reporting was incorrect. Recommendation - We recommend that the University put a control process in place in order to ensure all student status changes are reported timely and accurately. Views of Responsible Officials and Planned Corrective Actions - Shawnee State University will perform a comprehensive review of financial aid procedures (including review of financial aid processing, personnel responsibilities, and system modifications) and make revisions to workflows to prevent future occurrence of this finding. A review of activity prior to implementation of revised procedures will be conducted, and any exceptions will be documented and corrected.
Assistance Listing Number, Federal Agency, and Program Name - ALNs 84.268; Department of Education; Federal Direct Loan Program Federal Award Identification Number and Year - N/A Pass through Entity - N/A Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - If a student account is credited with Federal Direct Loans (FDL), the institution must notify the student or parent of date and amount as well as the right to cancel all or portion of loan, and the procedure and time by which the student must notify the institution no earlier than 30 days before and no later than 30 days after crediting student’s account if using an affirmative confirmation process (34 CFR Section 68.165). Condition - The University did not timely notify the student or parent within 30 days of crediting the student's account with Federal Direct Loans. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - Of the 21 students tested for FDL notification, notifications for 16 students were not timely communicated within the required time frame. Cause and Effect - The University did not have a process in place to ensure notifications were sent out in the required time frame. Recommendation - We recommend that the University institute a process to ensure that all notifications are sent within the required time frame. Views of Responsible Officials and Planned Corrective Actions - When posting direct loans to the student's account, we will add a touchpoint to the student's record. This automatically sends an email to the student. We will mail a notification to the parent in the case of a Parent Plus loan.