FAC Explorer

Audit 289972

FY End
2023-06-30
Total Expended
$39.53M
Findings
6
Programs
10
Organization: Wentworth Institute of Technology, Inc. (MA)
Year: 2023 Accepted: 2024-02-12
Auditor: Mayer Hoffman McCann PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
366870 2023-001 Significant Deficiency Yes E
366871 2023-002 Significant Deficiency Yes N
366872 2023-001 Significant Deficiency Yes E
943312 2023-001 Significant Deficiency Yes E
943313 2023-002 Significant Deficiency Yes N
943314 2023-001 Significant Deficiency Yes E

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $25.71M Yes 2
97.036 Covid-19 - Disaster Grants - Public Assistance (presidentially Declared Disasters) $6.21M Yes 0
84.063 Federal Pell Grant Program $4.34M Yes 1
84.038 Federal Perkins Loan Program $2.23M Yes 0
84.033 Federal Work-Study (fws) Program $494,986 Yes 0
84.007 Federal Supplemental Educational Opportunity Grant (fseog) Program $322,941 Yes 0
17.268 H-1b Job Training Grants $143,798 - 0
84.425 Covid-19 - Higher Education Emergency Relief Fund Student Portion $41,611 - 0
93.286 Discovery and Applied Research for Technological Innovations to Improve Human Health High Speed Spin Testing $27,056 - 0
47.076 Urban Massachusetts Lsamp $994 - 0

Contacts

Name Title Type
NDWSAHDCNFJ8 Jeffrey Dubois Auditee
6179894590 Michelle E. Spriggs Auditor
No contacts on file

Notes to SEFA

Title: Note 1 - Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The University has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The University has not passed through any amounts to subrecipients during the year ended June 30, 2023. De Minimis Rate Used: N Rate Explanation: The University has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of Wentworth Institute of Technology, Inc. (the “University”) under programs of the federal government for the year ended June 30, 2023. The information in this 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 assets or cash flows of the University.
Title: Note 3 - Federal Student Loan Program Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The University has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The University has not passed through any amounts to subrecipients during the year ended June 30, 2023. De Minimis Rate Used: N Rate Explanation: The University has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The federal student loan program listed subsequently is administered directly by the University and balances and transactions relating to this program are included in the University’s basic financial statements. Loans outstanding at the beginning of the year are included in the federal expenditures presented in the Schedule. The program has been terminated by the Department of Education and therefore no new loans were made during the year ended June 30, 2023. The balance of loans outstanding at June 30, 2023 consists of: SEE FINANCIAL STATEMENTS FOR TABLE

Finding Details

Finding 2023-001
Finding – Eligibility – Federal Direct Student Loan Program, Assistance Listing Number 84.268 and Federal Pell Grant Program, Assistance Listing Number 84.063; June 30, 2023 Award Year; U.S. Department of Education Criteria or Specific Requirement The amount of a student’s Pell Grant for an academic year is based upon the payment and disbursement schedules published by the Secretary for each award year (34 CFR Section 690.62(a)). The annual maximum loan amount an undergraduate student may receive must be prorated when the borrower is enrolled in a program that is shorter than a full academic year; or enrolled in a program that is one academic year or more in length, but is in a remaining period of study that is shorter than a full academic year. (2022 – 2023 Student Financial Aid Bank Book, Volume 3, Chapter 5, 34 CFR 685.203(a),(b),(c)) Condition Of the 40 students selected for eligibility testing, two students were incorrectly awarded student financial assistance; one student was incorrectly under-awarded a Pell Grant and the other student was over-awarded a Direct Loan. This was not a statistically valid sample. Cause For one student, an updated ISIR was issued following the award packaging process and the University did not correct the Pell Grant award following this update. For the other student, the Direct Loan was awarded based on a full year, however, the student graduated part way through the academic year and the loan was not prorated. Effect The students were not awarded an appropriate amount of Federal Student Financial Assistance based on the eligibility criteria. Questioned Costs Known Pell Grant under-award of $6,895 and Direct Loan over-award of $120. Identification as a Repeat Finding This is a repeat finding, see 2022-001. Recommendation The University should implement quality control reports to be generated and reviewed when there is a change in student information to ensure the correct amount of aid is awarded. Views of Responsible Officials and Corrective Actions See corrective action plan.
Finding 2023-002
Finding – Special Tests and Provisions: Enrollment Reporting – Federal Direct Student Loan Program, Assistance Listing Number 84.268; June 30, 2023 Award Year; U.S. Department of Education Criteria or Specific Requirement Enrollment information, including the effective date of separation from the institution, must be accurately reported within 30 days whenever attendance changes for a student, unless a roster will be submitted within 60 days. The changes include reductions or increases in attendance levels, withdrawals, graduations, and approved leaves-of absence. It is the institution’s responsibility, as a participant in the Title IV aid programs, to monitor and report these changes to the National Student Loan Data System (“NSLDS”). (NSLDS Enrollment Reporting Guide, and 34 CFR 685.309(b)) Condition Of the 40 students selected for enrollment reporting testing, three students were reported to NSLDS outside the maximum 60-day window. This was not a statistically valid sample. Cause The correct date of separation was reported by the University for these students within the 60-day window to the National Student Clearinghouse (“NSC”). The end of the 60-day window lapsed between the date NSC received the information and the date NSC communicated the information to NSLDS. Effect A student’s enrollment status determines eligibility for in-school status, deferment, grace periods, and repayments, as well as the government’s payment of interest subsidies. The notification of student status changes to NSLDS will cause a student to enter into a grace period and determine a repayment date and, therefore, accurate and timely notification of student status to NSLDS is important. Questioned Costs None noted. Identification as a Repeat Finding This is a repeat finding, see 2022-002. Recommendation The University should remain vigilant in its oversight over timely communication of enrollment reporting detail to NSC and from NSC to NSLDS as it is the University’s responsibility to ensure this information is received timely by NSLDS, regardless of whether an intermediate party is used. Views of Responsible Officials and Corrective Actions See corrective action plan.
Finding 2023-001
Finding – Eligibility – Federal Direct Student Loan Program, Assistance Listing Number 84.268 and Federal Pell Grant Program, Assistance Listing Number 84.063; June 30, 2023 Award Year; U.S. Department of Education Criteria or Specific Requirement The amount of a student’s Pell Grant for an academic year is based upon the payment and disbursement schedules published by the Secretary for each award year (34 CFR Section 690.62(a)). The annual maximum loan amount an undergraduate student may receive must be prorated when the borrower is enrolled in a program that is shorter than a full academic year; or enrolled in a program that is one academic year or more in length, but is in a remaining period of study that is shorter than a full academic year. (2022 – 2023 Student Financial Aid Bank Book, Volume 3, Chapter 5, 34 CFR 685.203(a),(b),(c)) Condition Of the 40 students selected for eligibility testing, two students were incorrectly awarded student financial assistance; one student was incorrectly under-awarded a Pell Grant and the other student was over-awarded a Direct Loan. This was not a statistically valid sample. Cause For one student, an updated ISIR was issued following the award packaging process and the University did not correct the Pell Grant award following this update. For the other student, the Direct Loan was awarded based on a full year, however, the student graduated part way through the academic year and the loan was not prorated. Effect The students were not awarded an appropriate amount of Federal Student Financial Assistance based on the eligibility criteria. Questioned Costs Known Pell Grant under-award of $6,895 and Direct Loan over-award of $120. Identification as a Repeat Finding This is a repeat finding, see 2022-001. Recommendation The University should implement quality control reports to be generated and reviewed when there is a change in student information to ensure the correct amount of aid is awarded. Views of Responsible Officials and Corrective Actions See corrective action plan.
Finding 2023-001
Finding – Eligibility – Federal Direct Student Loan Program, Assistance Listing Number 84.268 and Federal Pell Grant Program, Assistance Listing Number 84.063; June 30, 2023 Award Year; U.S. Department of Education Criteria or Specific Requirement The amount of a student’s Pell Grant for an academic year is based upon the payment and disbursement schedules published by the Secretary for each award year (34 CFR Section 690.62(a)). The annual maximum loan amount an undergraduate student may receive must be prorated when the borrower is enrolled in a program that is shorter than a full academic year; or enrolled in a program that is one academic year or more in length, but is in a remaining period of study that is shorter than a full academic year. (2022 – 2023 Student Financial Aid Bank Book, Volume 3, Chapter 5, 34 CFR 685.203(a),(b),(c)) Condition Of the 40 students selected for eligibility testing, two students were incorrectly awarded student financial assistance; one student was incorrectly under-awarded a Pell Grant and the other student was over-awarded a Direct Loan. This was not a statistically valid sample. Cause For one student, an updated ISIR was issued following the award packaging process and the University did not correct the Pell Grant award following this update. For the other student, the Direct Loan was awarded based on a full year, however, the student graduated part way through the academic year and the loan was not prorated. Effect The students were not awarded an appropriate amount of Federal Student Financial Assistance based on the eligibility criteria. Questioned Costs Known Pell Grant under-award of $6,895 and Direct Loan over-award of $120. Identification as a Repeat Finding This is a repeat finding, see 2022-001. Recommendation The University should implement quality control reports to be generated and reviewed when there is a change in student information to ensure the correct amount of aid is awarded. Views of Responsible Officials and Corrective Actions See corrective action plan.
Finding 2023-002
Finding – Special Tests and Provisions: Enrollment Reporting – Federal Direct Student Loan Program, Assistance Listing Number 84.268; June 30, 2023 Award Year; U.S. Department of Education Criteria or Specific Requirement Enrollment information, including the effective date of separation from the institution, must be accurately reported within 30 days whenever attendance changes for a student, unless a roster will be submitted within 60 days. The changes include reductions or increases in attendance levels, withdrawals, graduations, and approved leaves-of absence. It is the institution’s responsibility, as a participant in the Title IV aid programs, to monitor and report these changes to the National Student Loan Data System (“NSLDS”). (NSLDS Enrollment Reporting Guide, and 34 CFR 685.309(b)) Condition Of the 40 students selected for enrollment reporting testing, three students were reported to NSLDS outside the maximum 60-day window. This was not a statistically valid sample. Cause The correct date of separation was reported by the University for these students within the 60-day window to the National Student Clearinghouse (“NSC”). The end of the 60-day window lapsed between the date NSC received the information and the date NSC communicated the information to NSLDS. Effect A student’s enrollment status determines eligibility for in-school status, deferment, grace periods, and repayments, as well as the government’s payment of interest subsidies. The notification of student status changes to NSLDS will cause a student to enter into a grace period and determine a repayment date and, therefore, accurate and timely notification of student status to NSLDS is important. Questioned Costs None noted. Identification as a Repeat Finding This is a repeat finding, see 2022-002. Recommendation The University should remain vigilant in its oversight over timely communication of enrollment reporting detail to NSC and from NSC to NSLDS as it is the University’s responsibility to ensure this information is received timely by NSLDS, regardless of whether an intermediate party is used. Views of Responsible Officials and Corrective Actions See corrective action plan.
Finding 2023-001
Finding – Eligibility – Federal Direct Student Loan Program, Assistance Listing Number 84.268 and Federal Pell Grant Program, Assistance Listing Number 84.063; June 30, 2023 Award Year; U.S. Department of Education Criteria or Specific Requirement The amount of a student’s Pell Grant for an academic year is based upon the payment and disbursement schedules published by the Secretary for each award year (34 CFR Section 690.62(a)). The annual maximum loan amount an undergraduate student may receive must be prorated when the borrower is enrolled in a program that is shorter than a full academic year; or enrolled in a program that is one academic year or more in length, but is in a remaining period of study that is shorter than a full academic year. (2022 – 2023 Student Financial Aid Bank Book, Volume 3, Chapter 5, 34 CFR 685.203(a),(b),(c)) Condition Of the 40 students selected for eligibility testing, two students were incorrectly awarded student financial assistance; one student was incorrectly under-awarded a Pell Grant and the other student was over-awarded a Direct Loan. This was not a statistically valid sample. Cause For one student, an updated ISIR was issued following the award packaging process and the University did not correct the Pell Grant award following this update. For the other student, the Direct Loan was awarded based on a full year, however, the student graduated part way through the academic year and the loan was not prorated. Effect The students were not awarded an appropriate amount of Federal Student Financial Assistance based on the eligibility criteria. Questioned Costs Known Pell Grant under-award of $6,895 and Direct Loan over-award of $120. Identification as a Repeat Finding This is a repeat finding, see 2022-001. Recommendation The University should implement quality control reports to be generated and reviewed when there is a change in student information to ensure the correct amount of aid is awarded. Views of Responsible Officials and Corrective Actions See corrective action plan.