FAC Explorer

Audit 308242

FY End
2023-09-30
Total Expended
$76.92M
Findings
6
Programs
26
Organization: The University of West Alabama (AL)
Year: 2023 Accepted: 2024-06-06
Auditor: State of Alabama Department of Examiners of Public Accounts

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
400118 2023-002 Significant Deficiency - E
400119 2023-003 Significant Deficiency - A
400120 2023-002 Significant Deficiency - E
976560 2023-002 Significant Deficiency - E
976561 2023-003 Significant Deficiency - A
976562 2023-002 Significant Deficiency - E

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $59.83M Yes 1
84.063 Federal Pell Grant Program $8.30M Yes 2
11.300 Investments for Public Works and Economic Development Facilities $1.73M Yes 0
84.336 Teacher Quality Partnership Grants $1.54M - 0
93.925 Scholarships for Health Professions Students From Disadvantaged Backgrounds $665,578 Yes 0
84.382 Strengthening Minority-Serving Institutions $544,288 Yes 0
84.033 Federal Work-Study Program $542,291 Yes 0
11.028 Connecting Minority Communities Pilot Program $354,879 - 0
84.425 Education Stabilization Fund $347,009 Yes 0
84.042 Trio_student Support Services $333,996 - 0
84.047 Trio_upward Bound $296,977 - 0
84.031 Higher Education_institutional Aid $296,697 - 0
90.201 Delta Area Economic Development $261,530 - 0
10.326 Capacity Building for Non-Land Grant Colleges of Agriculture (nlgca) $217,035 - 0
17.259 Wia Youth Activities $214,682 - 0
84.007 Federal Supplemental Educational Opportunity Grants $204,630 Yes 0
10.351 Rural Business Development Grant $101,340 - 0
10.934 Feral Swine Eradication and Control Pilot Program (c, Z) $89,132 - 0
10.912 Environmental Quality Incentives Program $25,088 - 0
59.037 Small Business Development Centers $21,916 - 0
10.170 Specialty Crop Block Grant Program - Farm Bill $19,841 Yes 0
47.076 Education and Human Resources $13,081 Yes 0
47.074 Biological Sciences $5,316 Yes 0
45.129 Promotion of the Humanities_federal/state Partnership $3,405 - 0
21.009 Volunteer Income Tax Assistance (vita) Matching Grant Program $2,760 - 0
17.280 Workforce Investment Act (wia) Dislocated Worker National Reserve Demonstration Grants $2,759 - 0

Contacts

Name Title Type
NYQJM58LU2K3 Barbara Ethridge Auditee
2056523539 Melissa Knepper 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. De Minimis Rate Used: N Rate Explanation: The University has elected not to use the 10-percent de minimis indirect cost rate as allowed in the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of the University of West Alabama (the “University”) under programs of the federal government for the year ended September 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 (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.
Title: Federal Perkins Loan Program (84.038) 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. De Minimis Rate Used: N Rate Explanation: The University has elected not to use the 10-percent de minimis indirect cost rate as allowed in the Uniform Guidance. The Federal Perkins Loan Program is administered directly by the University. There were no current year student advances under this program. Outstanding loan balances from the previous year’s activity are included in the University’s basic financial statements. The balances of loans outstanding on September 30, 2023, totaled $36,139.62, which is not reflected on the schedule of expenditures of federal awards.
Title: Federal Direct Student Loan Program (84.268) 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. De Minimis Rate Used: N Rate Explanation: The University has elected not to use the 10-percent de minimis indirect cost rate as allowed in the Uniform Guidance. The Direct Loan program enables an eligible student or parent to obtain a loan to pay for the student’s cost of attendance directly through the University rather than through private lenders. As a university qualified to originate loans, the University is responsible for handling the complete loan origination process, including funds management and promissory note functions. The University is not responsible for the collection of these loans. During the program year, the University processed approximately $59.8 million of student loans under the Direct Loan program.

Finding Details

Finding 2023-002
Reference Number: 2023-002 Compliance Requirement: Eligibility Type of Finding: Internal Control and Compliance Internal Control Impact: Significant Deficiency Compliance Impact: Nonmaterial Noncompliance ALN Number and Title: Student Financial Assistance Cluster 84.007 – Federal Supplemental Educational Opportunity Grants 84.033 – Federal Work-Study Program 84.063 – Federal Pell Grants 84.268 – Federal Direct Student Loans 93.925 – Scholarships for Health Professions Students from Disadvantaged Backgrounds Federal Awarding Agency: U.S. Department of Education Federal Award Numbers: P007A220046 P033A220406 P063P221041 P268K231041 5 T08HP39331-03-00 Pass-through Entity: None Pass-through Award Number: None Questioned Costs: $1,724.00 The University failed to properly calculate Title IV disbursements. Finding Title 34 of the Code of Federal Regulations (CFR) Part 690.80 requires the recalculation of a Federal Pell Grant award to account for changes to the student’s costs, expected family contribution (EFC), or enrollment status. For a change in the student’s enrollment status from one academic term to another term within the same award year, the institution shall recalculate the Federal Pell Grant award for the new payment period. If a student’s projected enrollment status changes during a payment period before the student begins attendance in all of his or her classes for that payment period, the institution shall recalculate the student’s enrollment status to reflect only those classes for which the student actually began attendance. Forty student records were selected from the population of 1,716 Federal Pell Grant student records for the financial aid award year for testing compliance with Title IV student eligibility requirements. Audit tests performed determined the University failed to properly calculate or recalculate the Federal Pell Grant award based on enrollment or change in enrollment status, as required, for one student. The student was awarded a Pell Grant for full-time enrollment but should have only been half-time enrollment, resulting in a Federal Pell Grant over award of $1,724.00. Recommendation The University should recalculate Federal Pell Grant awards in accordance with Title 34 of the Code of Federal Regulations, Part 690.80. Views of Responsible Officials of the Auditee Management agrees with this finding and will take corrective actions.
Finding 2023-003
Reference Number: 2023-003 Compliance Requirement: Activities Allowed or Unallowed Type of Finding: Internal Control and Compliance Internal Control Impact: Significant Deficiency Compliance Impact: Nonmaterial Noncompliance ALN Number and Title: Student Financial Assistance Cluster 84.007 – Federal Supplemental Educational Opportunity Grants 84.033 – Federal Work-Study Program 84.063 – Federal Pell Grants 84.268 – Federal Direct Student Loans 93.925 – Scholarships for Health Professions Students from Disadvantaged Backgrounds Federal Awarding Agency: U.S. Department of Education Federal Award Numbers: P007A220046 P033A220406 P063P221041 P268K231041 5 T08HP39331-03-00 Pass-through Entity: None Pass-through Award Number: None Questioned Costs: None The University failed to reconcile the amounts recorded for Federal Pell Grants on the Department of Education systems with amounts recorded for Federal Pell Grants in the University’s general ledger. Finding Title 34 of the Code of Federal Regulations (CFR) 668 Subpart L – Financial Responsibility and the Federal Student Aid (FSA) Handbook discuss an institution’s financial responsibility and the required reconciliation process. 34 CFR 668.171(a) states, “To begin and continue to participate in any title IV, HEA program, an institution must demonstrate to the Secretary that it is financially responsible…”. The FSA Handbook states, “The cash management regulations establish rules and procedures that a school must follow in requesting, managing, and returning FSA program funds. Under the cash management regulations, a school has a fiduciary responsibility to have a system in place to: safeguard FSA funds; ensure FSA funds are used only for the purposes intended; act on the student’s behalf to repay a student’s FSA education loan debt when the school is unable to pay a credit balance directly to the student; and return to the Department any FSA funds that cannot be used as intended.” A key component of the system described is a reconciliation. The U.S. Department of Education has three systems that are involved in the reconciliation process. The Common Origination and Disbursement System (COD) is the system used for processing, storing, and reconciling certain FSA programs. The G5 System is a grants management system. Among other things, the system is used for awards and payments. Finally, the National Student Loan Data System (NSLDS) is the Department’s central database for student aid. NSLDS receives data from schools, guaranty agencies, the Direct Loan program, and other Department of Education programs. The FSA Handbook states, “Title IV reconciliation is the process by which a school reviews and compares Title IV aid (grants, loans, and Campus-Based aid) recorded on the Department’s systems (COD, G5, NSLDS) with the information in the school’s internal records. Through reconciliation, disbursement and cash discrepancies are identified and resolved in a timely manner to ensure the school meets all regulatory requirements. Schools must document their reconciliation process and retain any reconciliation documentation for audit and review purposes.” Audit tests revealed the University failed to adequately document any required reconciliations for the Federal Pell Grant Program. Due to this, we could not verify that the University performed required Pell Grant reconciliations. Recommendation The University should design and implement internal controls to ensure that the amounts recorded for student Title IV aid on the Department of Education systems (COD, G5, NSDLS) are reconciled with amounts recorded for student Title IV aid in the University's general ledger. Views of Responsible Officials of the Auditee Management agrees with this finding and will take corrective actions.
Finding 2023-002
Reference Number: 2023-002 Compliance Requirement: Eligibility Type of Finding: Internal Control and Compliance Internal Control Impact: Significant Deficiency Compliance Impact: Nonmaterial Noncompliance ALN Number and Title: Student Financial Assistance Cluster 84.007 – Federal Supplemental Educational Opportunity Grants 84.033 – Federal Work-Study Program 84.063 – Federal Pell Grants 84.268 – Federal Direct Student Loans 93.925 – Scholarships for Health Professions Students from Disadvantaged Backgrounds Federal Awarding Agency: U.S. Department of Education Federal Award Numbers: P007A220046 P033A220406 P063P221041 P268K231041 5 T08HP39331-03-00 Pass-through Entity: None Pass-through Award Number: None Questioned Costs: $1,724.00 The University failed to properly calculate Title IV disbursements. Finding Title 34 of the Code of Federal Regulations (CFR) Part 690.80 requires the recalculation of a Federal Pell Grant award to account for changes to the student’s costs, expected family contribution (EFC), or enrollment status. For a change in the student’s enrollment status from one academic term to another term within the same award year, the institution shall recalculate the Federal Pell Grant award for the new payment period. If a student’s projected enrollment status changes during a payment period before the student begins attendance in all of his or her classes for that payment period, the institution shall recalculate the student’s enrollment status to reflect only those classes for which the student actually began attendance. Forty student records were selected from the population of 1,716 Federal Pell Grant student records for the financial aid award year for testing compliance with Title IV student eligibility requirements. Audit tests performed determined the University failed to properly calculate or recalculate the Federal Pell Grant award based on enrollment or change in enrollment status, as required, for one student. The student was awarded a Pell Grant for full-time enrollment but should have only been half-time enrollment, resulting in a Federal Pell Grant over award of $1,724.00. Recommendation The University should recalculate Federal Pell Grant awards in accordance with Title 34 of the Code of Federal Regulations, Part 690.80. Views of Responsible Officials of the Auditee Management agrees with this finding and will take corrective actions.
Finding 2023-002
Reference Number: 2023-002 Compliance Requirement: Eligibility Type of Finding: Internal Control and Compliance Internal Control Impact: Significant Deficiency Compliance Impact: Nonmaterial Noncompliance ALN Number and Title: Student Financial Assistance Cluster 84.007 – Federal Supplemental Educational Opportunity Grants 84.033 – Federal Work-Study Program 84.063 – Federal Pell Grants 84.268 – Federal Direct Student Loans 93.925 – Scholarships for Health Professions Students from Disadvantaged Backgrounds Federal Awarding Agency: U.S. Department of Education Federal Award Numbers: P007A220046 P033A220406 P063P221041 P268K231041 5 T08HP39331-03-00 Pass-through Entity: None Pass-through Award Number: None Questioned Costs: $1,724.00 The University failed to properly calculate Title IV disbursements. Finding Title 34 of the Code of Federal Regulations (CFR) Part 690.80 requires the recalculation of a Federal Pell Grant award to account for changes to the student’s costs, expected family contribution (EFC), or enrollment status. For a change in the student’s enrollment status from one academic term to another term within the same award year, the institution shall recalculate the Federal Pell Grant award for the new payment period. If a student’s projected enrollment status changes during a payment period before the student begins attendance in all of his or her classes for that payment period, the institution shall recalculate the student’s enrollment status to reflect only those classes for which the student actually began attendance. Forty student records were selected from the population of 1,716 Federal Pell Grant student records for the financial aid award year for testing compliance with Title IV student eligibility requirements. Audit tests performed determined the University failed to properly calculate or recalculate the Federal Pell Grant award based on enrollment or change in enrollment status, as required, for one student. The student was awarded a Pell Grant for full-time enrollment but should have only been half-time enrollment, resulting in a Federal Pell Grant over award of $1,724.00. Recommendation The University should recalculate Federal Pell Grant awards in accordance with Title 34 of the Code of Federal Regulations, Part 690.80. Views of Responsible Officials of the Auditee Management agrees with this finding and will take corrective actions.
Finding 2023-003
Reference Number: 2023-003 Compliance Requirement: Activities Allowed or Unallowed Type of Finding: Internal Control and Compliance Internal Control Impact: Significant Deficiency Compliance Impact: Nonmaterial Noncompliance ALN Number and Title: Student Financial Assistance Cluster 84.007 – Federal Supplemental Educational Opportunity Grants 84.033 – Federal Work-Study Program 84.063 – Federal Pell Grants 84.268 – Federal Direct Student Loans 93.925 – Scholarships for Health Professions Students from Disadvantaged Backgrounds Federal Awarding Agency: U.S. Department of Education Federal Award Numbers: P007A220046 P033A220406 P063P221041 P268K231041 5 T08HP39331-03-00 Pass-through Entity: None Pass-through Award Number: None Questioned Costs: None The University failed to reconcile the amounts recorded for Federal Pell Grants on the Department of Education systems with amounts recorded for Federal Pell Grants in the University’s general ledger. Finding Title 34 of the Code of Federal Regulations (CFR) 668 Subpart L – Financial Responsibility and the Federal Student Aid (FSA) Handbook discuss an institution’s financial responsibility and the required reconciliation process. 34 CFR 668.171(a) states, “To begin and continue to participate in any title IV, HEA program, an institution must demonstrate to the Secretary that it is financially responsible…”. The FSA Handbook states, “The cash management regulations establish rules and procedures that a school must follow in requesting, managing, and returning FSA program funds. Under the cash management regulations, a school has a fiduciary responsibility to have a system in place to: safeguard FSA funds; ensure FSA funds are used only for the purposes intended; act on the student’s behalf to repay a student’s FSA education loan debt when the school is unable to pay a credit balance directly to the student; and return to the Department any FSA funds that cannot be used as intended.” A key component of the system described is a reconciliation. The U.S. Department of Education has three systems that are involved in the reconciliation process. The Common Origination and Disbursement System (COD) is the system used for processing, storing, and reconciling certain FSA programs. The G5 System is a grants management system. Among other things, the system is used for awards and payments. Finally, the National Student Loan Data System (NSLDS) is the Department’s central database for student aid. NSLDS receives data from schools, guaranty agencies, the Direct Loan program, and other Department of Education programs. The FSA Handbook states, “Title IV reconciliation is the process by which a school reviews and compares Title IV aid (grants, loans, and Campus-Based aid) recorded on the Department’s systems (COD, G5, NSLDS) with the information in the school’s internal records. Through reconciliation, disbursement and cash discrepancies are identified and resolved in a timely manner to ensure the school meets all regulatory requirements. Schools must document their reconciliation process and retain any reconciliation documentation for audit and review purposes.” Audit tests revealed the University failed to adequately document any required reconciliations for the Federal Pell Grant Program. Due to this, we could not verify that the University performed required Pell Grant reconciliations. Recommendation The University should design and implement internal controls to ensure that the amounts recorded for student Title IV aid on the Department of Education systems (COD, G5, NSDLS) are reconciled with amounts recorded for student Title IV aid in the University's general ledger. Views of Responsible Officials of the Auditee Management agrees with this finding and will take corrective actions.
Finding 2023-002
Reference Number: 2023-002 Compliance Requirement: Eligibility Type of Finding: Internal Control and Compliance Internal Control Impact: Significant Deficiency Compliance Impact: Nonmaterial Noncompliance ALN Number and Title: Student Financial Assistance Cluster 84.007 – Federal Supplemental Educational Opportunity Grants 84.033 – Federal Work-Study Program 84.063 – Federal Pell Grants 84.268 – Federal Direct Student Loans 93.925 – Scholarships for Health Professions Students from Disadvantaged Backgrounds Federal Awarding Agency: U.S. Department of Education Federal Award Numbers: P007A220046 P033A220406 P063P221041 P268K231041 5 T08HP39331-03-00 Pass-through Entity: None Pass-through Award Number: None Questioned Costs: $1,724.00 The University failed to properly calculate Title IV disbursements. Finding Title 34 of the Code of Federal Regulations (CFR) Part 690.80 requires the recalculation of a Federal Pell Grant award to account for changes to the student’s costs, expected family contribution (EFC), or enrollment status. For a change in the student’s enrollment status from one academic term to another term within the same award year, the institution shall recalculate the Federal Pell Grant award for the new payment period. If a student’s projected enrollment status changes during a payment period before the student begins attendance in all of his or her classes for that payment period, the institution shall recalculate the student’s enrollment status to reflect only those classes for which the student actually began attendance. Forty student records were selected from the population of 1,716 Federal Pell Grant student records for the financial aid award year for testing compliance with Title IV student eligibility requirements. Audit tests performed determined the University failed to properly calculate or recalculate the Federal Pell Grant award based on enrollment or change in enrollment status, as required, for one student. The student was awarded a Pell Grant for full-time enrollment but should have only been half-time enrollment, resulting in a Federal Pell Grant over award of $1,724.00. Recommendation The University should recalculate Federal Pell Grant awards in accordance with Title 34 of the Code of Federal Regulations, Part 690.80. Views of Responsible Officials of the Auditee Management agrees with this finding and will take corrective actions.