FAC Explorer

Audit 320424

FY End
2024-05-31
Total Expended
$7.71M
Findings
6
Programs
5
Organization: Howard Payne University (TX)
Year: 2024 Accepted: 2024-09-23
Auditor: Capincrouse LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
497631 2024-001 Significant Deficiency - N
497632 2024-001 Significant Deficiency - N
497633 2024-002 - Yes E
1074073 2024-001 Significant Deficiency - N
1074074 2024-001 Significant Deficiency - N
1074075 2024-002 - Yes E

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $5.42M Yes 1
84.063 Federal Pell Grant Program $1.91M Yes 2
84.007 Federal Supplemental Educational Opportunity Grants $175,854 Yes 0
84.033 Federal Work-Study Program $113,658 Yes 0
84.038 Federal Perkins Loan Program $92,514 Yes 0

Contacts

Name Title Type
F4KEMCA9Y4P3 Karen Laquey Auditee
3256498805 Dan Campbell, CPA Auditor
No contacts on file

Notes to SEFA

Title: RELATIONSHIP TO FINANCIAL STATEMENTS Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Howard Payne University (University) under programs of the federal government for the year ended May 31, 2024. The information in the schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Expenditures in 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. Negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. If the University is required to match certain federal assistance, as defined by the grant agreements, no such matching has been included as expenditures in the schedule. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. See the Notes to the SEFA for chart/table.
Title: SUBRECIPIENTS, NON-CASH ASSISTANCE, FEDERAL INSURANCE, LOANS, AND LOAN GUARANTEES Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Howard Payne University (University) under programs of the federal government for the year ended May 31, 2024. The information in the schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Expenditures in 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. Negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. If the University is required to match certain federal assistance, as defined by the grant agreements, no such matching has been included as expenditures in the schedule. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The University did not provide any federal funds to subrecipients nor did they receive any federal non-cash assistance, insurance, loans, or loan guarantees.
Title: FEDERAL PERKINS LOAN PROGRAM Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Howard Payne University (University) under programs of the federal government for the year ended May 31, 2024. The information in the schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Expenditures in 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. Negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. If the University is required to match certain federal assistance, as defined by the grant agreements, no such matching has been included as expenditures in the schedule. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. See the Notes to the SEFA for chart/table.
Title: INSTITUTION ELIGIBILITY LIMITATIONS IN ACCORDANCE WITH 34 CFR 600.7(a)1 Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Howard Payne University (University) under programs of the federal government for the year ended May 31, 2024. The information in the schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Expenditures in 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. Negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. If the University is required to match certain federal assistance, as defined by the grant agreements, no such matching has been included as expenditures in the schedule. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. To maintain intuitional eligibility to participate in the Department of Education’s Title IV financial aid programs, the institution is required to comply with 34 CFR 600.7(a)1 which limits the number of correspondence courses, the number students enrolled in correspondence courses, the number of incarcerated students enrolled, and the number of students enrolled without a high school diploma or recognized equivalent. As part of the audit procedures, compliance with these limitations was tested. No non-compliance with the requirements was noted.

Finding Details

Finding 2024-001
Incorrect Return of Title IV Funds Calculations Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: There were two incorrect calculations of returned funds for students that withdrew during the term. Criteria: 34 CFR 668.22 Questioned Costs: $2,861 Context: Out of 11 students, 1 student who withdrew during the audit period tested had funds returned late. This was due to the student’s calculation initially being for the full summer term instead of just one module, and the student did not complete more than 60% of the module, and therefore had not met the 49% exemption. One student’s R2T4 had been calculated based on the date the registrar had processed the paperwork for the withdrawal instead of the date of the official withdrawal or last date of attendance, whichever is later. Both students were corrected during the audit process. Cause: These were oversights by the University. Effect: Incorrect amounts of federal funding were returned. There were under-returns of Pell of $1,400 and under-returns of plus loans of $1,461. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend the University use the student’s last date of attendance or official withdrawal date for calculating the R2T4. We also recommend the University use the student’s original enrolled module schedules for determining the number of days in the term. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-001
Incorrect Return of Title IV Funds Calculations Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: There were two incorrect calculations of returned funds for students that withdrew during the term. Criteria: 34 CFR 668.22 Questioned Costs: $2,861 Context: Out of 11 students, 1 student who withdrew during the audit period tested had funds returned late. This was due to the student’s calculation initially being for the full summer term instead of just one module, and the student did not complete more than 60% of the module, and therefore had not met the 49% exemption. One student’s R2T4 had been calculated based on the date the registrar had processed the paperwork for the withdrawal instead of the date of the official withdrawal or last date of attendance, whichever is later. Both students were corrected during the audit process. Cause: These were oversights by the University. Effect: Incorrect amounts of federal funding were returned. There were under-returns of Pell of $1,400 and under-returns of plus loans of $1,461. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend the University use the student’s last date of attendance or official withdrawal date for calculating the R2T4. We also recommend the University use the student’s original enrolled module schedules for determining the number of days in the term. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-002
Incorrect Summer Pell Calculations DEPARTMENT OF EDUCATION ALN #: 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: Two students out of 35 were not properly awarded Pell based on summer enrollment status. Criteria: 34 CFR 690.63(b) Questioned Costs: $0 Context: One student was not paid Pell for a summer class in which they began attendance. This student was underawarded $556 of Pell. One student’s FAFSA was not received until after the student had earned 0 credits for a class in the summer, and so the student was not originally picked up as Pell eligible for that class, resulting in an underaward of $924 of Pell. Both students are in the process of being corrected. We understand the University has been working with the software provider (Powerfaids) to ensure summer Pell is paid correctly as a header. Cause: These were oversights by the University. Effect: There was an incorrect amount of Pell paid to these two students. Identification as repeat finding, if applicable: Yes, 2023-002. Recommendation: We continue to recommend seeking resolution with Powerfaids to ensure the proper awarding going forward. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-001
Incorrect Return of Title IV Funds Calculations Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: There were two incorrect calculations of returned funds for students that withdrew during the term. Criteria: 34 CFR 668.22 Questioned Costs: $2,861 Context: Out of 11 students, 1 student who withdrew during the audit period tested had funds returned late. This was due to the student’s calculation initially being for the full summer term instead of just one module, and the student did not complete more than 60% of the module, and therefore had not met the 49% exemption. One student’s R2T4 had been calculated based on the date the registrar had processed the paperwork for the withdrawal instead of the date of the official withdrawal or last date of attendance, whichever is later. Both students were corrected during the audit process. Cause: These were oversights by the University. Effect: Incorrect amounts of federal funding were returned. There were under-returns of Pell of $1,400 and under-returns of plus loans of $1,461. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend the University use the student’s last date of attendance or official withdrawal date for calculating the R2T4. We also recommend the University use the student’s original enrolled module schedules for determining the number of days in the term. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-001
Incorrect Return of Title IV Funds Calculations Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: There were two incorrect calculations of returned funds for students that withdrew during the term. Criteria: 34 CFR 668.22 Questioned Costs: $2,861 Context: Out of 11 students, 1 student who withdrew during the audit period tested had funds returned late. This was due to the student’s calculation initially being for the full summer term instead of just one module, and the student did not complete more than 60% of the module, and therefore had not met the 49% exemption. One student’s R2T4 had been calculated based on the date the registrar had processed the paperwork for the withdrawal instead of the date of the official withdrawal or last date of attendance, whichever is later. Both students were corrected during the audit process. Cause: These were oversights by the University. Effect: Incorrect amounts of federal funding were returned. There were under-returns of Pell of $1,400 and under-returns of plus loans of $1,461. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend the University use the student’s last date of attendance or official withdrawal date for calculating the R2T4. We also recommend the University use the student’s original enrolled module schedules for determining the number of days in the term. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-002
Incorrect Summer Pell Calculations DEPARTMENT OF EDUCATION ALN #: 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: Two students out of 35 were not properly awarded Pell based on summer enrollment status. Criteria: 34 CFR 690.63(b) Questioned Costs: $0 Context: One student was not paid Pell for a summer class in which they began attendance. This student was underawarded $556 of Pell. One student’s FAFSA was not received until after the student had earned 0 credits for a class in the summer, and so the student was not originally picked up as Pell eligible for that class, resulting in an underaward of $924 of Pell. Both students are in the process of being corrected. We understand the University has been working with the software provider (Powerfaids) to ensure summer Pell is paid correctly as a header. Cause: These were oversights by the University. Effect: There was an incorrect amount of Pell paid to these two students. Identification as repeat finding, if applicable: Yes, 2023-002. Recommendation: We continue to recommend seeking resolution with Powerfaids to ensure the proper awarding going forward. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.