FAC Explorer

Audit 296164

FY End
2023-08-31
Total Expended
$4.58M
Findings
6
Programs
9
Organization: East-West University (IL)
Year: 2023 Accepted: 2024-03-20
Auditor: Sikich LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
382600 2023-002 - - E
382601 2023-002 - - E
382602 2023-001 - Yes E
959042 2023-002 - - E
959043 2023-002 - - E
959044 2023-001 - Yes E

Programs

ALN Program Spent Major Findings
84.063 Federal Pell Grant Program $1.73M Yes 1
84.268 Federal Direct Student Loans $1.68M Yes 1
84.425 Covid-19 Higher Education Emergency Relief Funds (arpa) Student Aid Portion $590,244 - 0
84.031 Higher Education_institutional Aid $190,961 - 0
84.268 Federal Direct Student Loans - Plus Loans $159,459 Yes 1
84.425 Covid-19 Governor's Emergency Education Relief Fund (geer) $122,665 - 0
84.033 Federal Work-Study Program $48,625 Yes 0
84.007 Federal Supplemental Educational Opportunity Grants $38,026 Yes 0
84.116 Fund for the Improvement of Postsecondary Education $32,765 - 0

Contacts

Name Title Type
DRLXSNVEH6M7 Dr. Madhu Jain Auditee
3129390111 Ray Krouse Auditor
No contacts on file

Notes to SEFA

Title: NOTE 2- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the East-West University (the University) under programs of the federal government for the year ended August 31, 2023. The information in this Schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (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. De Minimis Rate Used: Y Rate Explanation: The University has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. 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.
Title: NOTE 3 - INSURANCE, LOANS, OR LOAN GUARANTEES Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the East-West University (the University) under programs of the federal government for the year ended August 31, 2023. The information in this Schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (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. De Minimis Rate Used: Y Rate Explanation: The University has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Other than Federal Direct Student Loans included on the Schedule, there were no other insurance, loans, or loan guarantees outstanding as of and for the year ended August 31, 2023.
Title: NOTE 4 - SUBRECIPIENTS Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the East-West University (the University) under programs of the federal government for the year ended August 31, 2023. The information in this Schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (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. De Minimis Rate Used: Y Rate Explanation: The University has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. There were no amounts provided to subrecipients from any federal program during the year ended August 31, 2023.
Title: NOTE 5 - VALUE OF NONCASH ASSISTANCE Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the East-West University (the University) under programs of the federal government for the year ended August 31, 2023. The information in this Schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (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. De Minimis Rate Used: Y Rate Explanation: The University has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. There was no noncash assistance expended during the year ended August 31, 2023.

Finding Details

Finding 2023-002
Criteria: According to 34 CFR 685.203 an eligible dependent or independent student is disbursed Subsidized Direct Loans up to their need and what they are eligible for based on their year in school. Condition: During our student file testing we noted two students out of forty were disbursed the incorrect Direct Loan amount. Based on the student’s enrollment status and need the students were over awarded $4,500 in Subsidized Loans and under awarded $4,500 in Unsubsidized Loans. We consider this error in awarding to be an instance of noncompliance of the Eligibility Compliance Requirement. Statistical sampling was not used when making sample selections. Questioned Costs: $0 Effect: Two students were over awarded Subsidized Direct Loans in the amount of $4,500 and under awarded Unsubsidized Direct loans in the amount of $4,500. Cause: The University’s internal controls did not identify the fact that the students were over awarded Subsidized Direct Loans in the amount of $4,500 and under awarded Unsubsidized Direct loans in the amount of $4,500. Recommendation: We recommend the University closely monitor all students who receive direct loans and verify that they receive the proper amount of Subsidized and Unsubsidized Direct Loans. Views of Responsible Officials: Management agrees with this finding and response is included in Corrective Action Plan.
Finding 2023-002
Criteria: According to 34 CFR 685.203 an eligible dependent or independent student is disbursed Subsidized Direct Loans up to their need and what they are eligible for based on their year in school. Condition: During our student file testing we noted two students out of forty were disbursed the incorrect Direct Loan amount. Based on the student’s enrollment status and need the students were over awarded $4,500 in Subsidized Loans and under awarded $4,500 in Unsubsidized Loans. We consider this error in awarding to be an instance of noncompliance of the Eligibility Compliance Requirement. Statistical sampling was not used when making sample selections. Questioned Costs: $0 Effect: Two students were over awarded Subsidized Direct Loans in the amount of $4,500 and under awarded Unsubsidized Direct loans in the amount of $4,500. Cause: The University’s internal controls did not identify the fact that the students were over awarded Subsidized Direct Loans in the amount of $4,500 and under awarded Unsubsidized Direct loans in the amount of $4,500. Recommendation: We recommend the University closely monitor all students who receive direct loans and verify that they receive the proper amount of Subsidized and Unsubsidized Direct Loans. Views of Responsible Officials: Management agrees with this finding and response is included in Corrective Action Plan.
Finding 2023-001
Criteria: According to 34 CFR 690.63 students may qualify for a maximum Pell Grant award of $6,895 for an award year. The maximum amount is awarded to students with a zero Expected Family Contribution (EFC) and full-time enrollment status. Students with less than full-time enrollment or more than a zero EFC are eligible for a reduced Pell award. Condition: During our student file testing we noted one student out of forty was not disbursed the correct Pell Grant. The student was enrolled as three-quarters time but was awarded as being a full-time student resulting in an over award of $574. We consider this error to be an instance of noncompliance relating to the Eligibility Compliance Requirement. This finding was repeated from last year, see Prior Year finding 2022-002. Statistical sampling was not used when making sample selections. Questioned Costs: $574 Effect: One student received an incorrect amount of Pell award and was over awarded an amount of $574. Cause: The University’s internal controls did not identify that the incorrect amount of Pell grant was awarded to the student. According to the Department of Education’s Pell matrix chart, the student was over awarded Pell in the amount of $574. Recommendation: We recommend the University closely monitor all student’s enrollment status to ensure all students receiving financial aid are disbursed the correct amount. Views of Responsible Officials: Management agrees with the Single Audit finding and a response is included in the Corrective Action Plan.
Finding 2023-002
Criteria: According to 34 CFR 685.203 an eligible dependent or independent student is disbursed Subsidized Direct Loans up to their need and what they are eligible for based on their year in school. Condition: During our student file testing we noted two students out of forty were disbursed the incorrect Direct Loan amount. Based on the student’s enrollment status and need the students were over awarded $4,500 in Subsidized Loans and under awarded $4,500 in Unsubsidized Loans. We consider this error in awarding to be an instance of noncompliance of the Eligibility Compliance Requirement. Statistical sampling was not used when making sample selections. Questioned Costs: $0 Effect: Two students were over awarded Subsidized Direct Loans in the amount of $4,500 and under awarded Unsubsidized Direct loans in the amount of $4,500. Cause: The University’s internal controls did not identify the fact that the students were over awarded Subsidized Direct Loans in the amount of $4,500 and under awarded Unsubsidized Direct loans in the amount of $4,500. Recommendation: We recommend the University closely monitor all students who receive direct loans and verify that they receive the proper amount of Subsidized and Unsubsidized Direct Loans. Views of Responsible Officials: Management agrees with this finding and response is included in Corrective Action Plan.
Finding 2023-002
Criteria: According to 34 CFR 685.203 an eligible dependent or independent student is disbursed Subsidized Direct Loans up to their need and what they are eligible for based on their year in school. Condition: During our student file testing we noted two students out of forty were disbursed the incorrect Direct Loan amount. Based on the student’s enrollment status and need the students were over awarded $4,500 in Subsidized Loans and under awarded $4,500 in Unsubsidized Loans. We consider this error in awarding to be an instance of noncompliance of the Eligibility Compliance Requirement. Statistical sampling was not used when making sample selections. Questioned Costs: $0 Effect: Two students were over awarded Subsidized Direct Loans in the amount of $4,500 and under awarded Unsubsidized Direct loans in the amount of $4,500. Cause: The University’s internal controls did not identify the fact that the students were over awarded Subsidized Direct Loans in the amount of $4,500 and under awarded Unsubsidized Direct loans in the amount of $4,500. Recommendation: We recommend the University closely monitor all students who receive direct loans and verify that they receive the proper amount of Subsidized and Unsubsidized Direct Loans. Views of Responsible Officials: Management agrees with this finding and response is included in Corrective Action Plan.
Finding 2023-001
Criteria: According to 34 CFR 690.63 students may qualify for a maximum Pell Grant award of $6,895 for an award year. The maximum amount is awarded to students with a zero Expected Family Contribution (EFC) and full-time enrollment status. Students with less than full-time enrollment or more than a zero EFC are eligible for a reduced Pell award. Condition: During our student file testing we noted one student out of forty was not disbursed the correct Pell Grant. The student was enrolled as three-quarters time but was awarded as being a full-time student resulting in an over award of $574. We consider this error to be an instance of noncompliance relating to the Eligibility Compliance Requirement. This finding was repeated from last year, see Prior Year finding 2022-002. Statistical sampling was not used when making sample selections. Questioned Costs: $574 Effect: One student received an incorrect amount of Pell award and was over awarded an amount of $574. Cause: The University’s internal controls did not identify that the incorrect amount of Pell grant was awarded to the student. According to the Department of Education’s Pell matrix chart, the student was over awarded Pell in the amount of $574. Recommendation: We recommend the University closely monitor all student’s enrollment status to ensure all students receiving financial aid are disbursed the correct amount. Views of Responsible Officials: Management agrees with the Single Audit finding and a response is included in the Corrective Action Plan.