Audit 31365

FY End
2022-06-30
Total Expended
$48.39M
Findings
8
Programs
8
Organization: Oklahoma City University (OK)
Year: 2022 Accepted: 2023-03-05
Auditor: Forvis LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
30550 2022-001 Significant Deficiency - N
30551 2022-002 Significant Deficiency Yes L
30552 2022-003 Significant Deficiency - I
30553 2022-002 Significant Deficiency - L
606992 2022-001 Significant Deficiency - N
606993 2022-002 Significant Deficiency Yes L
606994 2022-003 Significant Deficiency - I
606995 2022-002 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $41.64M Yes 1
84.063 Federal Pell Grant Program $1.55M Yes 0
84.038 Federal Perkins Loan Program $1.54M Yes 0
84.425 Education Stabilization Fund $1.06M Yes 2
84.033 Federal Work-Study Program $244,325 Yes 0
16.746 Capital Case Litigation Initiative $151,195 - 0
84.007 Federal Supplemental Educational Opportunity Grants $136,017 Yes 0
12.900 Language Grant Program $2,647 - 0

Contacts

Name Title Type
XZC5KQFLECQ7 Anna Davis Auditee
4052085542 Becky Robins Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federalaward activity of Oklahoma City University (the University) under programs of the federalgovernment for the year ended June 30, 2022. The information in this Schedule is presented inaccordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, UniformAdministrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UniformGuidance). 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 ofthe University. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Suchexpenditures 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. Negativeamounts shown on the Schedule, if any, represent adjustments or credits made in the normal course ofbusiness to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The federal loan program listed subsequently is administered directly by the University, and balances and transactions relating to this program are included in the Universitys basic financial statements. Loans outstanding at the beginning of the year are included in the federal expenditures presented in the Schedule. There were no loans made during the year. The balance of loans outstanding at June 30, 2022 consists of: FEDERAL PERKINS LOAN PROGRAM (84.038) - Balances outstanding at the end of the audit period were 888271.

Finding Details

Student Financial Assistant Cluster ALN 84.268 Federal Direct Student Loan Programs U.S. Department of Education Program Year 2021 ? 2022 Criteria or Specific Requirement ? Special Tests and Provisions: Disbursements to or on Behalf of Students, 34 CFR 668.165 Condition ? Eleven students with direct loans were not notified of the date and amount of disbursement and that they have the right to cancel all or a portion of the disbursement. Questioned Costs ? None Context ? Out of the population of 1,527 students who received federal direct student loans, a sample of 27 students was selected for testing. Eleven of the tested students were not correctly notified of the date and disbursement of their direct loans or of the fact that they have the right to cancel all or a portion of the disbursement. Our sample was not and was not intended to be a statically valid sample. Effect ? Eleven students did not receive notifications regarding their direct loans, as required. Cause ? An algorithm in the University?s system was not updated, causing direct loan notifications not to occur for any student not receiving any aid other than direct loans. Identification as a Repeat Finding ? N/A Recommendation ? The University should review its procedures for ensuring that algorithms established in the system are reviewed and updated to ensure all notifications are occurring in compliance with Department of Education guidelines. Views of Responsible Officials and Planned Corrective Actions ? Management agrees with the finding and will ensure that all algorithms are reviewed and updated in the future.
COVID-19 Education Stabilization Fund, Higher Education Emergency Relief Fund ? Student Aid Portion, ALN 84.425E Higher Education Emergency Relief Fund ? Institutional Aid Portion, ALN 84.425F U.S. Department of Education, Award Year 2022 Criteria or Specific Requirement ? Reporting ? Section 18004(a)(1) Student Aid Portion Quarterly Public Reporting and Institutional Aid Portion Quarterly Public Reporting ? 85 FR 53082 Condition ? One of the University?s required public reports for Higher Education Emergency Relief Fund (HEERF) III student aid portion dollars disbursed during the Fall 2021 term and one of the University?s required public reports for HEERF II institutional aid portion dollars were not publicly posted in a timely manner. Questioned Costs ? None Context ? Out of the population of five required quarterly public reports for HEERF I, II, and III student aid portion dollars, one was selected for testing. Out of four required quarterly reports for HEERF I, II, and III institutional aid portion dollars, one was selected for testing. Neither report tested was publicly posted by the stated Department of Education deadline. Our sample was not and was not intended to be a statically valid sample. Effect ? Information required to be made publicly available was not done so in a timely manner, which could result in a loss of funding. Cause ? This was a newer federal program with evolving compliance requirements and, due to turnover in the financial accounting services department in the prior year, current employees were not aware of the requirement. Identification as a Repeat Finding ? 2021-001 Recommendation ? The University should review its processes and controls to ensure awareness of compliance requirements. Views of Responsible Officials and Planned Corrective Actions ? Management agrees with the finding and, once made aware, timely filed all required reports.
COVID-19 Education Stabilization Fund, Higher Education Emergency Relief Fund ? Institutional Aid Portion, ALN 84.425F U.S. Department of Education, Award Year 2022 Criteria or Specific Requirement ? Procurement and Suspension and Debarment ? Section 18004(a)(1) Institutional Aid Portion ? 2 CFR 200.318-326 Condition ? The University does not have a procurement policy as required under federal guidelines. No support exists to show that vendors are reviewed for suspension or debarment. No support is maintained for sole source purchases. Questioned Costs ? None Context ? The University does not have a procurement policy in place to meet the Uniform Guidance procurement requirements. No errors were specifically found in testing of purchases against federal procurement requirements, but support could not be provided to show University procedures to check suspension or debarment. While none were selected for testing, it was additionally noted that no support was maintained for sole source purchases. Effect ? It is possible that purchases may be made that are not in accordance with federal procurement requirements that could lead to material noncompliance with federal grant agreements. Cause ? The University does not have a procurement policy in accordance with Uniform Guidance in place as is required under federal guidelines. Identification as a Repeat Finding ? N/A Recommendation ? The University should draft and approve a procurement policy that covers all aspects of federal procurement requirements. Views of Responsible Officials and Planned Corrective Actions ? Management agrees with the finding and implemented a procurement policy after year-end.
COVID-19 Education Stabilization Fund, Higher Education Emergency Relief Fund ? Student Aid Portion, ALN 84.425E Higher Education Emergency Relief Fund ? Institutional Aid Portion, ALN 84.425F U.S. Department of Education, Award Year 2022 Criteria or Specific Requirement ? Reporting ? Section 18004(a)(1) Student Aid Portion Quarterly Public Reporting and Institutional Aid Portion Quarterly Public Reporting ? 85 FR 53082 Condition ? One of the University?s required public reports for Higher Education Emergency Relief Fund (HEERF) III student aid portion dollars disbursed during the Fall 2021 term and one of the University?s required public reports for HEERF II institutional aid portion dollars were not publicly posted in a timely manner. Questioned Costs ? None Context ? Out of the population of five required quarterly public reports for HEERF I, II, and III student aid portion dollars, one was selected for testing. Out of four required quarterly reports for HEERF I, II, and III institutional aid portion dollars, one was selected for testing. Neither report tested was publicly posted by the stated Department of Education deadline. Our sample was not and was not intended to be a statically valid sample. Effect ? Information required to be made publicly available was not done so in a timely manner, which could result in a loss of funding. Cause ? This was a newer federal program with evolving compliance requirements and, due to turnover in the financial accounting services department in the prior year, current employees were not aware of the requirement. Identification as a Repeat Finding ? 2021-001 Recommendation ? The University should review its processes and controls to ensure awareness of compliance requirements. Views of Responsible Officials and Planned Corrective Actions ? Management agrees with the finding and, once made aware, timely filed all required reports.
Student Financial Assistant Cluster ALN 84.268 Federal Direct Student Loan Programs U.S. Department of Education Program Year 2021 ? 2022 Criteria or Specific Requirement ? Special Tests and Provisions: Disbursements to or on Behalf of Students, 34 CFR 668.165 Condition ? Eleven students with direct loans were not notified of the date and amount of disbursement and that they have the right to cancel all or a portion of the disbursement. Questioned Costs ? None Context ? Out of the population of 1,527 students who received federal direct student loans, a sample of 27 students was selected for testing. Eleven of the tested students were not correctly notified of the date and disbursement of their direct loans or of the fact that they have the right to cancel all or a portion of the disbursement. Our sample was not and was not intended to be a statically valid sample. Effect ? Eleven students did not receive notifications regarding their direct loans, as required. Cause ? An algorithm in the University?s system was not updated, causing direct loan notifications not to occur for any student not receiving any aid other than direct loans. Identification as a Repeat Finding ? N/A Recommendation ? The University should review its procedures for ensuring that algorithms established in the system are reviewed and updated to ensure all notifications are occurring in compliance with Department of Education guidelines. Views of Responsible Officials and Planned Corrective Actions ? Management agrees with the finding and will ensure that all algorithms are reviewed and updated in the future.
COVID-19 Education Stabilization Fund, Higher Education Emergency Relief Fund ? Student Aid Portion, ALN 84.425E Higher Education Emergency Relief Fund ? Institutional Aid Portion, ALN 84.425F U.S. Department of Education, Award Year 2022 Criteria or Specific Requirement ? Reporting ? Section 18004(a)(1) Student Aid Portion Quarterly Public Reporting and Institutional Aid Portion Quarterly Public Reporting ? 85 FR 53082 Condition ? One of the University?s required public reports for Higher Education Emergency Relief Fund (HEERF) III student aid portion dollars disbursed during the Fall 2021 term and one of the University?s required public reports for HEERF II institutional aid portion dollars were not publicly posted in a timely manner. Questioned Costs ? None Context ? Out of the population of five required quarterly public reports for HEERF I, II, and III student aid portion dollars, one was selected for testing. Out of four required quarterly reports for HEERF I, II, and III institutional aid portion dollars, one was selected for testing. Neither report tested was publicly posted by the stated Department of Education deadline. Our sample was not and was not intended to be a statically valid sample. Effect ? Information required to be made publicly available was not done so in a timely manner, which could result in a loss of funding. Cause ? This was a newer federal program with evolving compliance requirements and, due to turnover in the financial accounting services department in the prior year, current employees were not aware of the requirement. Identification as a Repeat Finding ? 2021-001 Recommendation ? The University should review its processes and controls to ensure awareness of compliance requirements. Views of Responsible Officials and Planned Corrective Actions ? Management agrees with the finding and, once made aware, timely filed all required reports.
COVID-19 Education Stabilization Fund, Higher Education Emergency Relief Fund ? Institutional Aid Portion, ALN 84.425F U.S. Department of Education, Award Year 2022 Criteria or Specific Requirement ? Procurement and Suspension and Debarment ? Section 18004(a)(1) Institutional Aid Portion ? 2 CFR 200.318-326 Condition ? The University does not have a procurement policy as required under federal guidelines. No support exists to show that vendors are reviewed for suspension or debarment. No support is maintained for sole source purchases. Questioned Costs ? None Context ? The University does not have a procurement policy in place to meet the Uniform Guidance procurement requirements. No errors were specifically found in testing of purchases against federal procurement requirements, but support could not be provided to show University procedures to check suspension or debarment. While none were selected for testing, it was additionally noted that no support was maintained for sole source purchases. Effect ? It is possible that purchases may be made that are not in accordance with federal procurement requirements that could lead to material noncompliance with federal grant agreements. Cause ? The University does not have a procurement policy in accordance with Uniform Guidance in place as is required under federal guidelines. Identification as a Repeat Finding ? N/A Recommendation ? The University should draft and approve a procurement policy that covers all aspects of federal procurement requirements. Views of Responsible Officials and Planned Corrective Actions ? Management agrees with the finding and implemented a procurement policy after year-end.
COVID-19 Education Stabilization Fund, Higher Education Emergency Relief Fund ? Student Aid Portion, ALN 84.425E Higher Education Emergency Relief Fund ? Institutional Aid Portion, ALN 84.425F U.S. Department of Education, Award Year 2022 Criteria or Specific Requirement ? Reporting ? Section 18004(a)(1) Student Aid Portion Quarterly Public Reporting and Institutional Aid Portion Quarterly Public Reporting ? 85 FR 53082 Condition ? One of the University?s required public reports for Higher Education Emergency Relief Fund (HEERF) III student aid portion dollars disbursed during the Fall 2021 term and one of the University?s required public reports for HEERF II institutional aid portion dollars were not publicly posted in a timely manner. Questioned Costs ? None Context ? Out of the population of five required quarterly public reports for HEERF I, II, and III student aid portion dollars, one was selected for testing. Out of four required quarterly reports for HEERF I, II, and III institutional aid portion dollars, one was selected for testing. Neither report tested was publicly posted by the stated Department of Education deadline. Our sample was not and was not intended to be a statically valid sample. Effect ? Information required to be made publicly available was not done so in a timely manner, which could result in a loss of funding. Cause ? This was a newer federal program with evolving compliance requirements and, due to turnover in the financial accounting services department in the prior year, current employees were not aware of the requirement. Identification as a Repeat Finding ? 2021-001 Recommendation ? The University should review its processes and controls to ensure awareness of compliance requirements. Views of Responsible Officials and Planned Corrective Actions ? Management agrees with the finding and, once made aware, timely filed all required reports.