FAC Explorer

Audit 32138

FY End
2022-06-30
Total Expended
$11.02M
Findings
6
Programs
7
Organization: Oklahoma Wesleyan University (OK)
Year: 2022 Accepted: 2023-01-24
Auditor: Keller & Owens LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
32770 2022-001 - Yes L
32771 2022-002 - Yes NP
32772 2022-003 - - E
609212 2022-001 - Yes L
609213 2022-002 - Yes NP
609214 2022-003 - - E

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $6.88M Yes 3
84.063 Federal Pell Grant Program $1.38M Yes 0
84.038 Federal Perkins Loan Program $158,024 Yes 0
84.033 Federal Work-Study Program $142,637 Yes 0
84.007 Federal Supplemental Educational Opportunity Grants $104,009 Yes 0
84.425 Education Stabilization Fund $103,487 Yes 0
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $92,414 Yes 0

Contacts

Name Title Type
JJMWYHKXKRJ6 Kirk Jackson Auditee
9183356836 Gregory D. Owens Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: BASIS OF PRESENTATIONThe schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Oklahoma Wesleyan University (the University) under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements 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 assets, or cash flows of the University.The University includes loans granted under the Federal Direct Student Loans Program as expenditures of federal awards. Federal Direct Student Loan Program balances are not included in the financial statements of the University.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures 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 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 grant agreements, no such matching has been included as expenditures in the Schedule. De Minimis Rate Used: N Rate Explanation: The University has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The University administers the Federal Perkins Loan Program. For the purposes of the schedule, the amount reported included the outstanding loan balance at the beginning of the year. Due to regulation changes, no further loans can be made from the program, and no administrative cost allowances can be taken from the loan fund. The loan balance outstanding, net of the allowance for doubtful accounts, was $113,600 at June 30, 2022.Schools have the option of continuing to collect on outstanding loan balance or can voluntarily liquidate the program. The University has no current plans to begin the Perkins liquidation process. However, the University is required to periodically return excess cash on hand from the program to the Department of Education.
Title: FEDERAL DIRECT STUDENT LOANS Accounting Policies: BASIS OF PRESENTATIONThe schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Oklahoma Wesleyan University (the University) under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements 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 assets, or cash flows of the University.The University includes loans granted under the Federal Direct Student Loans Program as expenditures of federal awards. Federal Direct Student Loan Program balances are not included in the financial statements of the University.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures 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 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 grant agreements, no such matching has been included as expenditures in the Schedule. De Minimis Rate Used: N Rate Explanation: The University has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. During the fiscal year ended June 30, 2022, the University processed the following amount of new loans under the Federal Direct Student Loan Program (which includes Subsidized Stafford Loans, Unsubsidized Stafford Loans, and Plus Loans for Undergraduate and Graduate Students):AL NumberAmount AuthorizedFederal Direct Student Loans84.268$6,877,168
Title: FEDERAL PELL GRANT Accounting Policies: BASIS OF PRESENTATIONThe schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Oklahoma Wesleyan University (the University) under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements 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 assets, or cash flows of the University.The University includes loans granted under the Federal Direct Student Loans Program as expenditures of federal awards. Federal Direct Student Loan Program balances are not included in the financial statements of the University.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures 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 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 grant agreements, no such matching has been included as expenditures in the Schedule. De Minimis Rate Used: N Rate Explanation: The University has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. Included in the Federal PELL Grant expenditures is an administrative cost allowance of $1,575.
Title: FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANT Accounting Policies: BASIS OF PRESENTATIONThe schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Oklahoma Wesleyan University (the University) under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements 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 assets, or cash flows of the University.The University includes loans granted under the Federal Direct Student Loans Program as expenditures of federal awards. Federal Direct Student Loan Program balances are not included in the financial statements of the University.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures 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 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 grant agreements, no such matching has been included as expenditures in the Schedule. De Minimis Rate Used: N Rate Explanation: The University has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The following is included as Federal Supplemental Educational Opportunity Grant (FSEOG) expenditures:Federal share of grants$104,009Institutional share of grants34,670Total FSEOG Expenditures$138,679
Title: FEDERAL WORK STUDY Accounting Policies: BASIS OF PRESENTATIONThe schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Oklahoma Wesleyan University (the University) under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements 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 assets, or cash flows of the University.The University includes loans granted under the Federal Direct Student Loans Program as expenditures of federal awards. Federal Direct Student Loan Program balances are not included in the financial statements of the University.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures 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 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 grant agreements, no such matching has been included as expenditures in the Schedule. De Minimis Rate Used: N Rate Explanation: The University has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The following is included as Federal Work Study (FWS) expenditures:Federal share of Federal Work Study wages$127,222Institutional share of Federal Work Study wages42,407Administrative cost allowance15,415Total FWS Expenditures$185,044

Finding Details

Finding 2022-001
FINDING 2022-001 ? NSLDS Reporting Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Direct Student Loan Program ALN and Program Expenditures: 84.268 ($6,877,168) Award Number: P268K222030 Federal Award Year: July 1, 2021 to June 30, 2022 Questioned Costs: $-0- Condition Found: The incorrect effective date of an enrollment status change was reported to the National Student Loan Database System (?NSLDS?) for two of the sixty students selected for testing. Criteria: NSLDS informs loan servicers of changes in a student?s enrollment status that indicate when the repayments or interest accrual begins and ends. The date a student enrolls, withdraws, graduates, or drops below half-time status should be reported accurately. This information must be reported within sixty days of the status change. Cause: For the first student, the end of the semester date was used as the withdrawal date instead of the date the student withdrew during the semester. For the second student, the start of the spring semester was used as the last date of attendance when the date should have been the last date of the fall semester. Possible Asserted Effect: The loan servicers were not aware of the correct deferral, repayment, and interest calculation dates. Repeat Finding: See Finding 2021-001 in the prior audit for a finding related to NSLDS reporting. While both findings contain NSLDS reporting errors, the causes of the errors are different. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: The Financial Aid Director should update the withdrawal date for the students in question in NSLDS. Procedures should be improved to ensure that the correct withdrawal date is reported in NSLDS. Management Response: The Financial Aid Director updated the withdrawal dates in NSLDS for the students in question on August 3, 2022. Procedures will be improved to ensure that the correct withdrawal date is reported in NSLDS.
Finding 2022-002
FINDING 2022-002 ? Federal Direct Loan Exit Interview Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Direct Student Loan Program ALN and Program Expenditures: 84.268 ($6,877,168) Award Number: P268K222030 Federal Award Year: July 1, 2021 to June 30, 2022 Questioned Costs: $-0- Condition Found: A Federal Direct Loan exit interview was not completed by nor were instructions sent to the student on how to complete an exit interview when the student graduated from the University. This omission occurred for one of the sixty students in our sample. Criteria: Federal Direct Loan recipients must receive exit interview counseling. If in-person counseling is not completed, the University may mail written counseling materials to the student?s last known address. Cause: Federal Direct Loan exit counseling was not provided when the student withdrew from the University at the end of the spring semester. This was an oversight on the part of the financial aid office staff. Possible Asserted Effect: The student was not aware of his or her responsibilities related to the Federal Direct Loan program, including repayment options and when repayment on the loan begins. Repeat Finding: There was a similar finding in the prior year related to sending a TEACH Grant exit interview. See prior year Finding 2021-002. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: Federal Direct Loan exit interview information should be sent to the student in question. Procedures should be improved to ensure that Federal Direct exit interviews are completed or information is sent to a student when a student ceases attendance at the University. Management Response: Federal Direct Loan exit interview information was sent to the student in question on August 3, 2022. Procedures will be improved to ensure Federal Direct Loan exit interviews are completed or information is sent to students when they cease enrollment at the University.
Finding 2022-003
FINDING 2022-003 ? Subsidized Loan Allocation Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Direct Student Loan Program ALN and Program Expenditures: 84.268 ($6,877,168) Award Number: P268K222030 Federal Award Year: July 1, 2021 to June 30, 2022 Questioned Costs: $-0- Condition Found: The amount of Subsidized and Unsubsidized Federal Direct Loans awarded was incorrect for one of the fifty-four students in our sample that received Federal Direct Loans. Criteria: The annual subsidized Federal Direct Loan limit is $3,500 for freshmen, $4,500 for sophomores, and $5,500 for juniors and seniors. Cause: The student in question declined to participate in the Federal Work Study program. When this occurred, unsubsidized loans were awarded later to the student without reviewing the student?s remaining subsidized loan eligibility. Possible Asserted Effect: The student was eligible for an additional $1,407 of subsidized federal direct loans. However, the student received a $1,407 unsubsidized loan. Repeat Finding: There was not a similar finding the prior year. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: $1,407 of unsubsidized loan funds should be reclassified to subsidized loans. Procedures should be improved to ensure that subsidized loan eligibility is reviewed before awarding unsubsidized loans. Management Response: The Financial Aid Director updated reallocated $1,407 of unsubsidized loan funds as subsidized loan funds on August 3, 2022. Procedures will be improved to ensure that subsidized loan eligibility is reviewed before awarding unsubsidized loans.
Finding 2022-001
FINDING 2022-001 ? NSLDS Reporting Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Direct Student Loan Program ALN and Program Expenditures: 84.268 ($6,877,168) Award Number: P268K222030 Federal Award Year: July 1, 2021 to June 30, 2022 Questioned Costs: $-0- Condition Found: The incorrect effective date of an enrollment status change was reported to the National Student Loan Database System (?NSLDS?) for two of the sixty students selected for testing. Criteria: NSLDS informs loan servicers of changes in a student?s enrollment status that indicate when the repayments or interest accrual begins and ends. The date a student enrolls, withdraws, graduates, or drops below half-time status should be reported accurately. This information must be reported within sixty days of the status change. Cause: For the first student, the end of the semester date was used as the withdrawal date instead of the date the student withdrew during the semester. For the second student, the start of the spring semester was used as the last date of attendance when the date should have been the last date of the fall semester. Possible Asserted Effect: The loan servicers were not aware of the correct deferral, repayment, and interest calculation dates. Repeat Finding: See Finding 2021-001 in the prior audit for a finding related to NSLDS reporting. While both findings contain NSLDS reporting errors, the causes of the errors are different. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: The Financial Aid Director should update the withdrawal date for the students in question in NSLDS. Procedures should be improved to ensure that the correct withdrawal date is reported in NSLDS. Management Response: The Financial Aid Director updated the withdrawal dates in NSLDS for the students in question on August 3, 2022. Procedures will be improved to ensure that the correct withdrawal date is reported in NSLDS.
Finding 2022-002
FINDING 2022-002 ? Federal Direct Loan Exit Interview Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Direct Student Loan Program ALN and Program Expenditures: 84.268 ($6,877,168) Award Number: P268K222030 Federal Award Year: July 1, 2021 to June 30, 2022 Questioned Costs: $-0- Condition Found: A Federal Direct Loan exit interview was not completed by nor were instructions sent to the student on how to complete an exit interview when the student graduated from the University. This omission occurred for one of the sixty students in our sample. Criteria: Federal Direct Loan recipients must receive exit interview counseling. If in-person counseling is not completed, the University may mail written counseling materials to the student?s last known address. Cause: Federal Direct Loan exit counseling was not provided when the student withdrew from the University at the end of the spring semester. This was an oversight on the part of the financial aid office staff. Possible Asserted Effect: The student was not aware of his or her responsibilities related to the Federal Direct Loan program, including repayment options and when repayment on the loan begins. Repeat Finding: There was a similar finding in the prior year related to sending a TEACH Grant exit interview. See prior year Finding 2021-002. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: Federal Direct Loan exit interview information should be sent to the student in question. Procedures should be improved to ensure that Federal Direct exit interviews are completed or information is sent to a student when a student ceases attendance at the University. Management Response: Federal Direct Loan exit interview information was sent to the student in question on August 3, 2022. Procedures will be improved to ensure Federal Direct Loan exit interviews are completed or information is sent to students when they cease enrollment at the University.
Finding 2022-003
FINDING 2022-003 ? Subsidized Loan Allocation Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Direct Student Loan Program ALN and Program Expenditures: 84.268 ($6,877,168) Award Number: P268K222030 Federal Award Year: July 1, 2021 to June 30, 2022 Questioned Costs: $-0- Condition Found: The amount of Subsidized and Unsubsidized Federal Direct Loans awarded was incorrect for one of the fifty-four students in our sample that received Federal Direct Loans. Criteria: The annual subsidized Federal Direct Loan limit is $3,500 for freshmen, $4,500 for sophomores, and $5,500 for juniors and seniors. Cause: The student in question declined to participate in the Federal Work Study program. When this occurred, unsubsidized loans were awarded later to the student without reviewing the student?s remaining subsidized loan eligibility. Possible Asserted Effect: The student was eligible for an additional $1,407 of subsidized federal direct loans. However, the student received a $1,407 unsubsidized loan. Repeat Finding: There was not a similar finding the prior year. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: $1,407 of unsubsidized loan funds should be reclassified to subsidized loans. Procedures should be improved to ensure that subsidized loan eligibility is reviewed before awarding unsubsidized loans. Management Response: The Financial Aid Director updated reallocated $1,407 of unsubsidized loan funds as subsidized loan funds on August 3, 2022. Procedures will be improved to ensure that subsidized loan eligibility is reviewed before awarding unsubsidized loans.