FAC Explorer

Audit 300044

FY End
2023-06-30
Total Expended
$6.34M
Findings
14
Programs
5
Organization: William Peace Universirty (NC)
Year: 2023 Accepted: 2024-03-28
Auditor: Bdo USA PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
388237 2023-001 Material Weakness - N
388238 2023-002 - - E
388239 2023-003 - - E
388240 2023-001 Material Weakness - N
388241 2023-003 - - E
388242 2023-001 Material Weakness - N
388243 2023-003 - - E
964679 2023-001 Material Weakness - N
964680 2023-002 - - E
964681 2023-003 - - E
964682 2023-001 Material Weakness - N
964683 2023-003 - - E
964684 2023-001 Material Weakness - N
964685 2023-003 - - E

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $4.76M Yes 2
84.063 Federal Pell Grant Program $1.33M Yes 3
84.425 Education Stabilization Fund $116,337 - 0
84.007 Federal Supplemental Educational Opportunity Grants $76,247 Yes 2
84.033 Federal Work-Study Program $55,709 Yes 0

Contacts

Name Title Type
VCWNN8TNYW65 Kristen Burke Auditee
9195082033 Logan Beavans Auditor
No contacts on file

Notes to SEFA

Title: 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. Expenditures for programs of the student financial assistance cluster include the federal portion of students’ Federal Supplemental Educational Opportunity Grants (“FSEOG”) and Federal Work-Study (“FWS”) program grants, certain other federal financial aid for students, and administrative cost allowances, where applicable. Federal Pell Grant Program awards are recognized as agency transactions and are not recorded as expenditures in the financial statements, but are reflected in the Schedule. The University has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The University did not disburse any federal or state funds to subrecipients. De Minimis Rate Used: N Rate Explanation: The auditee does not use the de minimus cost rate. The accompanying schedule of expenditures of federal and state awards (the “Schedule”) includes the federal and state award activity of William Peace University (the “University”) under programs of the federal and state governments for the year ended June 30, 2023. Because the Schedule presents only a selected portion of the operations of the University, it is not intended to and does not present the consolidated financial position, changes in net assets, or cash flows of the University. For purposes of the Schedule, federal and state awards include all grants, contracts, and similar agreements entered into directly between the University and agencies and departments of the federal and state governments or subawards. 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 (“Uniform Guidance”) and the North Carolina Need-Based Scholarship Program Compliance Supplement Guide (“State Guidance”).
Title: Summary of Significant Accounting Policies 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. Expenditures for programs of the student financial assistance cluster include the federal portion of students’ Federal Supplemental Educational Opportunity Grants (“FSEOG”) and Federal Work-Study (“FWS”) program grants, certain other federal financial aid for students, and administrative cost allowances, where applicable. Federal Pell Grant Program awards are recognized as agency transactions and are not recorded as expenditures in the financial statements, but are reflected in the Schedule. The University has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The University did not disburse any federal or state funds to subrecipients. De Minimis Rate Used: N Rate Explanation: The auditee does not use the de minimus cost rate. 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. Expenditures for programs of the student financial assistance cluster include the federal portion of students’ Federal Supplemental Educational Opportunity Grants (“FSEOG”) and Federal Work-Study (“FWS”) program grants, certain other federal financial aid for students, and administrative cost allowances, where applicable. Federal Pell Grant Program awards are recognized as agency transactions and are not recorded as expenditures in the financial statements, but are reflected in the Schedule. The University has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The University did not disburse any federal or state funds to subrecipients.
Title: Contingency 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. Expenditures for programs of the student financial assistance cluster include the federal portion of students’ Federal Supplemental Educational Opportunity Grants (“FSEOG”) and Federal Work-Study (“FWS”) program grants, certain other federal financial aid for students, and administrative cost allowances, where applicable. Federal Pell Grant Program awards are recognized as agency transactions and are not recorded as expenditures in the financial statements, but are reflected in the Schedule. The University has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The University did not disburse any federal or state funds to subrecipients. De Minimis Rate Used: N Rate Explanation: The auditee does not use the de minimus cost rate. The grant revenue amounts received are subject to audit and adjustment. If any expenditures are disallowed by the grantor agencies as a result of such an audit, any claim for reimbursement to the grantor agencies would become a liability of the University. In the opinion of management, and with the exception of certain findings presented in the accompanying schedule of findings and questioned costs, all grant expenditures are in compliance with the terms of the grant agreements and applicable federal and state laws and regulations.
Title: Matching 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. Expenditures for programs of the student financial assistance cluster include the federal portion of students’ Federal Supplemental Educational Opportunity Grants (“FSEOG”) and Federal Work-Study (“FWS”) program grants, certain other federal financial aid for students, and administrative cost allowances, where applicable. Federal Pell Grant Program awards are recognized as agency transactions and are not recorded as expenditures in the financial statements, but are reflected in the Schedule. The University has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The University did not disburse any federal or state funds to subrecipients. De Minimis Rate Used: N Rate Explanation: The auditee does not use the de minimus cost rate. The University obtained a waiver for the year ended June 30, 2023 related to the institutional-share matching requirement of its FSEOG and FWS grants; therefore, the University was not required to comply with any matching requirements.
Title: Federal Direct 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. Expenditures for programs of the student financial assistance cluster include the federal portion of students’ Federal Supplemental Educational Opportunity Grants (“FSEOG”) and Federal Work-Study (“FWS”) program grants, certain other federal financial aid for students, and administrative cost allowances, where applicable. Federal Pell Grant Program awards are recognized as agency transactions and are not recorded as expenditures in the financial statements, but are reflected in the Schedule. The University has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The University did not disburse any federal or state funds to subrecipients. De Minimis Rate Used: N Rate Explanation: The auditee does not use the de minimus cost rate. The University is responsible only for the performance of certain administrative duties with respect to its Federal Direct Student Loan programs and, accordingly, these loans are not included in the University’s consolidated financial statements. It is not practicable to determine the balance of loans outstanding to students and former students of the University under these programs as of June 30, 2023; therefore, loans made during the year are included in the federal expenditures presented in the Schedule.

Finding Details

Finding 2023-001
Federal Program Information: Student Financial Assistance Cluster (Various Federal Assistance Listing Numbers) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): Special Tests and Provisions – Loan Disbursement Notification - Federal regulations (34 CFR section 668.165) require that the institution notify the student, or parent, in writing of (1) the anticipated date and amount of the disbursement; (2) the student’s right, or parent’s right, to cancel all or a portion of that loan or loan disbursement and have the loan proceeds returned; and (3) the procedure and time by which the student or parent must notify the institution that he or she wishes to cancel the loan or loan disbursement. Institutions that implement an affirmative confirmation process (as described in 34 CFR section 668.165 (a)(6)(i)) must make this notification to the student or parent no earlier than 30 days before, and no later than 30 days after, crediting the student’s account at the institution with the loans. The Federal Student Aid Handbook further clarifies that in general, there are two types of notifications a school must provide: (1) a general notification to parent Direct PLUS borrowers and all students receiving Federal Student Aid (“FSA”) funds (often referred to as award letters), and (2) a notice when FSA loan funds are credited to a student’s account. Condition: The University did not provide award letters to parent Direct PLUS borrowers and all students receiving any FSA funds. Loan disbursement notifications were not sent to all borrowers. Cause: Lack of administrative oversight with respect to award letters and loan disbursement notifications. Effect: Recipients of FSA funds and/or borrowers were not properly notified of their awards or their loan disbursements and their right to cancel or decline loan awards. Questioned Costs: None. Context: For 22 of the 25 students selected for testing, award letters were not sent. For 25 of 25 students, loan disbursement notifications were not sent. Repeat Finding: This is not a repeat finding from the prior year. Recommendation: We recommend the University enhance its policies and procedures over award notifications to ensure that notifications are sent to borrowers and award recipients within the required timeframe. Views of responsible officials and planned corrective actions: Management concurs with the finding. The University plans to review its process of notifying individuals.
Finding 2023-002
Federal Program Information: Student Financial Assistance Cluster (ALN #84.063) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): In accordance with Eligibility – Federal Pell Grants criteria, the amount of a student’s Pell Grant for an academic year is based upon the payment and disbursement schedules published by the Department of Education. (34.CFR Section 690.62(a)) Condition: For one student selected, the University did not award the appropriate Federal Pell amount for the payment period. As a result, the student did not receive the full Pell Grant amount for which they were eligible. Cause: The University did not accurately calculate and disburse the Federal Pell Grant for one student. Effect: One student was awarded the incorrect amount of Federal Pell award for the payment period. Questioned Costs: None. Context: 1 of 25 students selected for testing. Repeat Finding: This is not a repeat finding from the prior year. Recommendation: We recommend that the University accurately calculate Pell Grants for students. Views of responsible officials and planned corrective actions: Management concurs with the finding. The University plans to review its process for calculating Federal Pell Grant awards.
Finding 2023-003
Federal Program Information: Student Financial Assistance Cluster (Various Federal Assistance Listing Numbers) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): In accordance with Eligibility requirements, the University is required to calculate the cost of attendance for students based on the cost of attendance budget. Condition: The cost of attendance for one student did not agree to the budget based on the student’s enrollment. Cause: The University did not appropriately calculate one student’s cost of attendance. Effect: The University did not comply with the requirement to appropriately calculate the cost of attendance for a student. Questioned Costs: None. Context: 1 of 25 students selected for testing. Repeat Finding: This is not a repeat finding from the prior year. Recommendation: We recommend that the University accurately calculate the cost of attendance. Views of responsible officials and planned corrective actions: Management concurs with the finding. The University plans to review its process for the cost of attendance calculation.
Finding 2023-001
Federal Program Information: Student Financial Assistance Cluster (Various Federal Assistance Listing Numbers) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): Special Tests and Provisions – Loan Disbursement Notification - Federal regulations (34 CFR section 668.165) require that the institution notify the student, or parent, in writing of (1) the anticipated date and amount of the disbursement; (2) the student’s right, or parent’s right, to cancel all or a portion of that loan or loan disbursement and have the loan proceeds returned; and (3) the procedure and time by which the student or parent must notify the institution that he or she wishes to cancel the loan or loan disbursement. Institutions that implement an affirmative confirmation process (as described in 34 CFR section 668.165 (a)(6)(i)) must make this notification to the student or parent no earlier than 30 days before, and no later than 30 days after, crediting the student’s account at the institution with the loans. The Federal Student Aid Handbook further clarifies that in general, there are two types of notifications a school must provide: (1) a general notification to parent Direct PLUS borrowers and all students receiving Federal Student Aid (“FSA”) funds (often referred to as award letters), and (2) a notice when FSA loan funds are credited to a student’s account. Condition: The University did not provide award letters to parent Direct PLUS borrowers and all students receiving any FSA funds. Loan disbursement notifications were not sent to all borrowers. Cause: Lack of administrative oversight with respect to award letters and loan disbursement notifications. Effect: Recipients of FSA funds and/or borrowers were not properly notified of their awards or their loan disbursements and their right to cancel or decline loan awards. Questioned Costs: None. Context: For 22 of the 25 students selected for testing, award letters were not sent. For 25 of 25 students, loan disbursement notifications were not sent. Repeat Finding: This is not a repeat finding from the prior year. Recommendation: We recommend the University enhance its policies and procedures over award notifications to ensure that notifications are sent to borrowers and award recipients within the required timeframe. Views of responsible officials and planned corrective actions: Management concurs with the finding. The University plans to review its process of notifying individuals.
Finding 2023-003
Federal Program Information: Student Financial Assistance Cluster (Various Federal Assistance Listing Numbers) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): In accordance with Eligibility requirements, the University is required to calculate the cost of attendance for students based on the cost of attendance budget. Condition: The cost of attendance for one student did not agree to the budget based on the student’s enrollment. Cause: The University did not appropriately calculate one student’s cost of attendance. Effect: The University did not comply with the requirement to appropriately calculate the cost of attendance for a student. Questioned Costs: None. Context: 1 of 25 students selected for testing. Repeat Finding: This is not a repeat finding from the prior year. Recommendation: We recommend that the University accurately calculate the cost of attendance. Views of responsible officials and planned corrective actions: Management concurs with the finding. The University plans to review its process for the cost of attendance calculation.
Finding 2023-001
Federal Program Information: Student Financial Assistance Cluster (Various Federal Assistance Listing Numbers) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): Special Tests and Provisions – Loan Disbursement Notification - Federal regulations (34 CFR section 668.165) require that the institution notify the student, or parent, in writing of (1) the anticipated date and amount of the disbursement; (2) the student’s right, or parent’s right, to cancel all or a portion of that loan or loan disbursement and have the loan proceeds returned; and (3) the procedure and time by which the student or parent must notify the institution that he or she wishes to cancel the loan or loan disbursement. Institutions that implement an affirmative confirmation process (as described in 34 CFR section 668.165 (a)(6)(i)) must make this notification to the student or parent no earlier than 30 days before, and no later than 30 days after, crediting the student’s account at the institution with the loans. The Federal Student Aid Handbook further clarifies that in general, there are two types of notifications a school must provide: (1) a general notification to parent Direct PLUS borrowers and all students receiving Federal Student Aid (“FSA”) funds (often referred to as award letters), and (2) a notice when FSA loan funds are credited to a student’s account. Condition: The University did not provide award letters to parent Direct PLUS borrowers and all students receiving any FSA funds. Loan disbursement notifications were not sent to all borrowers. Cause: Lack of administrative oversight with respect to award letters and loan disbursement notifications. Effect: Recipients of FSA funds and/or borrowers were not properly notified of their awards or their loan disbursements and their right to cancel or decline loan awards. Questioned Costs: None. Context: For 22 of the 25 students selected for testing, award letters were not sent. For 25 of 25 students, loan disbursement notifications were not sent. Repeat Finding: This is not a repeat finding from the prior year. Recommendation: We recommend the University enhance its policies and procedures over award notifications to ensure that notifications are sent to borrowers and award recipients within the required timeframe. Views of responsible officials and planned corrective actions: Management concurs with the finding. The University plans to review its process of notifying individuals.
Finding 2023-003
Federal Program Information: Student Financial Assistance Cluster (Various Federal Assistance Listing Numbers) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): In accordance with Eligibility requirements, the University is required to calculate the cost of attendance for students based on the cost of attendance budget. Condition: The cost of attendance for one student did not agree to the budget based on the student’s enrollment. Cause: The University did not appropriately calculate one student’s cost of attendance. Effect: The University did not comply with the requirement to appropriately calculate the cost of attendance for a student. Questioned Costs: None. Context: 1 of 25 students selected for testing. Repeat Finding: This is not a repeat finding from the prior year. Recommendation: We recommend that the University accurately calculate the cost of attendance. Views of responsible officials and planned corrective actions: Management concurs with the finding. The University plans to review its process for the cost of attendance calculation.
Finding 2023-001
Federal Program Information: Student Financial Assistance Cluster (Various Federal Assistance Listing Numbers) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): Special Tests and Provisions – Loan Disbursement Notification - Federal regulations (34 CFR section 668.165) require that the institution notify the student, or parent, in writing of (1) the anticipated date and amount of the disbursement; (2) the student’s right, or parent’s right, to cancel all or a portion of that loan or loan disbursement and have the loan proceeds returned; and (3) the procedure and time by which the student or parent must notify the institution that he or she wishes to cancel the loan or loan disbursement. Institutions that implement an affirmative confirmation process (as described in 34 CFR section 668.165 (a)(6)(i)) must make this notification to the student or parent no earlier than 30 days before, and no later than 30 days after, crediting the student’s account at the institution with the loans. The Federal Student Aid Handbook further clarifies that in general, there are two types of notifications a school must provide: (1) a general notification to parent Direct PLUS borrowers and all students receiving Federal Student Aid (“FSA”) funds (often referred to as award letters), and (2) a notice when FSA loan funds are credited to a student’s account. Condition: The University did not provide award letters to parent Direct PLUS borrowers and all students receiving any FSA funds. Loan disbursement notifications were not sent to all borrowers. Cause: Lack of administrative oversight with respect to award letters and loan disbursement notifications. Effect: Recipients of FSA funds and/or borrowers were not properly notified of their awards or their loan disbursements and their right to cancel or decline loan awards. Questioned Costs: None. Context: For 22 of the 25 students selected for testing, award letters were not sent. For 25 of 25 students, loan disbursement notifications were not sent. Repeat Finding: This is not a repeat finding from the prior year. Recommendation: We recommend the University enhance its policies and procedures over award notifications to ensure that notifications are sent to borrowers and award recipients within the required timeframe. Views of responsible officials and planned corrective actions: Management concurs with the finding. The University plans to review its process of notifying individuals.
Finding 2023-002
Federal Program Information: Student Financial Assistance Cluster (ALN #84.063) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): In accordance with Eligibility – Federal Pell Grants criteria, the amount of a student’s Pell Grant for an academic year is based upon the payment and disbursement schedules published by the Department of Education. (34.CFR Section 690.62(a)) Condition: For one student selected, the University did not award the appropriate Federal Pell amount for the payment period. As a result, the student did not receive the full Pell Grant amount for which they were eligible. Cause: The University did not accurately calculate and disburse the Federal Pell Grant for one student. Effect: One student was awarded the incorrect amount of Federal Pell award for the payment period. Questioned Costs: None. Context: 1 of 25 students selected for testing. Repeat Finding: This is not a repeat finding from the prior year. Recommendation: We recommend that the University accurately calculate Pell Grants for students. Views of responsible officials and planned corrective actions: Management concurs with the finding. The University plans to review its process for calculating Federal Pell Grant awards.
Finding 2023-003
Federal Program Information: Student Financial Assistance Cluster (Various Federal Assistance Listing Numbers) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): In accordance with Eligibility requirements, the University is required to calculate the cost of attendance for students based on the cost of attendance budget. Condition: The cost of attendance for one student did not agree to the budget based on the student’s enrollment. Cause: The University did not appropriately calculate one student’s cost of attendance. Effect: The University did not comply with the requirement to appropriately calculate the cost of attendance for a student. Questioned Costs: None. Context: 1 of 25 students selected for testing. Repeat Finding: This is not a repeat finding from the prior year. Recommendation: We recommend that the University accurately calculate the cost of attendance. Views of responsible officials and planned corrective actions: Management concurs with the finding. The University plans to review its process for the cost of attendance calculation.
Finding 2023-001
Federal Program Information: Student Financial Assistance Cluster (Various Federal Assistance Listing Numbers) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): Special Tests and Provisions – Loan Disbursement Notification - Federal regulations (34 CFR section 668.165) require that the institution notify the student, or parent, in writing of (1) the anticipated date and amount of the disbursement; (2) the student’s right, or parent’s right, to cancel all or a portion of that loan or loan disbursement and have the loan proceeds returned; and (3) the procedure and time by which the student or parent must notify the institution that he or she wishes to cancel the loan or loan disbursement. Institutions that implement an affirmative confirmation process (as described in 34 CFR section 668.165 (a)(6)(i)) must make this notification to the student or parent no earlier than 30 days before, and no later than 30 days after, crediting the student’s account at the institution with the loans. The Federal Student Aid Handbook further clarifies that in general, there are two types of notifications a school must provide: (1) a general notification to parent Direct PLUS borrowers and all students receiving Federal Student Aid (“FSA”) funds (often referred to as award letters), and (2) a notice when FSA loan funds are credited to a student’s account. Condition: The University did not provide award letters to parent Direct PLUS borrowers and all students receiving any FSA funds. Loan disbursement notifications were not sent to all borrowers. Cause: Lack of administrative oversight with respect to award letters and loan disbursement notifications. Effect: Recipients of FSA funds and/or borrowers were not properly notified of their awards or their loan disbursements and their right to cancel or decline loan awards. Questioned Costs: None. Context: For 22 of the 25 students selected for testing, award letters were not sent. For 25 of 25 students, loan disbursement notifications were not sent. Repeat Finding: This is not a repeat finding from the prior year. Recommendation: We recommend the University enhance its policies and procedures over award notifications to ensure that notifications are sent to borrowers and award recipients within the required timeframe. Views of responsible officials and planned corrective actions: Management concurs with the finding. The University plans to review its process of notifying individuals.
Finding 2023-003
Federal Program Information: Student Financial Assistance Cluster (Various Federal Assistance Listing Numbers) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): In accordance with Eligibility requirements, the University is required to calculate the cost of attendance for students based on the cost of attendance budget. Condition: The cost of attendance for one student did not agree to the budget based on the student’s enrollment. Cause: The University did not appropriately calculate one student’s cost of attendance. Effect: The University did not comply with the requirement to appropriately calculate the cost of attendance for a student. Questioned Costs: None. Context: 1 of 25 students selected for testing. Repeat Finding: This is not a repeat finding from the prior year. Recommendation: We recommend that the University accurately calculate the cost of attendance. Views of responsible officials and planned corrective actions: Management concurs with the finding. The University plans to review its process for the cost of attendance calculation.
Finding 2023-001
Federal Program Information: Student Financial Assistance Cluster (Various Federal Assistance Listing Numbers) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): Special Tests and Provisions – Loan Disbursement Notification - Federal regulations (34 CFR section 668.165) require that the institution notify the student, or parent, in writing of (1) the anticipated date and amount of the disbursement; (2) the student’s right, or parent’s right, to cancel all or a portion of that loan or loan disbursement and have the loan proceeds returned; and (3) the procedure and time by which the student or parent must notify the institution that he or she wishes to cancel the loan or loan disbursement. Institutions that implement an affirmative confirmation process (as described in 34 CFR section 668.165 (a)(6)(i)) must make this notification to the student or parent no earlier than 30 days before, and no later than 30 days after, crediting the student’s account at the institution with the loans. The Federal Student Aid Handbook further clarifies that in general, there are two types of notifications a school must provide: (1) a general notification to parent Direct PLUS borrowers and all students receiving Federal Student Aid (“FSA”) funds (often referred to as award letters), and (2) a notice when FSA loan funds are credited to a student’s account. Condition: The University did not provide award letters to parent Direct PLUS borrowers and all students receiving any FSA funds. Loan disbursement notifications were not sent to all borrowers. Cause: Lack of administrative oversight with respect to award letters and loan disbursement notifications. Effect: Recipients of FSA funds and/or borrowers were not properly notified of their awards or their loan disbursements and their right to cancel or decline loan awards. Questioned Costs: None. Context: For 22 of the 25 students selected for testing, award letters were not sent. For 25 of 25 students, loan disbursement notifications were not sent. Repeat Finding: This is not a repeat finding from the prior year. Recommendation: We recommend the University enhance its policies and procedures over award notifications to ensure that notifications are sent to borrowers and award recipients within the required timeframe. Views of responsible officials and planned corrective actions: Management concurs with the finding. The University plans to review its process of notifying individuals.
Finding 2023-003
Federal Program Information: Student Financial Assistance Cluster (Various Federal Assistance Listing Numbers) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): In accordance with Eligibility requirements, the University is required to calculate the cost of attendance for students based on the cost of attendance budget. Condition: The cost of attendance for one student did not agree to the budget based on the student’s enrollment. Cause: The University did not appropriately calculate one student’s cost of attendance. Effect: The University did not comply with the requirement to appropriately calculate the cost of attendance for a student. Questioned Costs: None. Context: 1 of 25 students selected for testing. Repeat Finding: This is not a repeat finding from the prior year. Recommendation: We recommend that the University accurately calculate the cost of attendance. Views of responsible officials and planned corrective actions: Management concurs with the finding. The University plans to review its process for the cost of attendance calculation.