FAC Explorer

Audit 34177

FY End
2022-05-31
Total Expended
$11.94M
Findings
4
Programs
7
Organization: University of the Southwest (NM)
Year: 2022 Accepted: 2022-11-15
Auditor: Capincrouse LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
33996 2022-001 Material Weakness Yes N
33997 2022-001 Material Weakness Yes N
610438 2022-001 Material Weakness Yes N
610439 2022-001 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $9.19M Yes 1
84.063 Federal Pell Grant Program $1.19M Yes 1
84.425 Covid-19 Education Stabilization Fund Heerf - Institutional Portion $691,932 Yes 0
84.425 Covid-19 Education Stabilization Fund Heerf - Student Aid Portion $689,310 Yes 0
84.425 Covid-19 Education Stabilization Fund Heerf - Minority Serving Institutions $84,039 Yes 0
84.007 Federal Supplemental Educational Opportunity Grants $63,029 Yes 0
84.033 Federal Work-Study Program $35,320 Yes 0

Contacts

Name Title Type
WKRBMJBWY5X1 Paula Smith Auditee
5754922102 Tim Sims, 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 University of the Southwest (the University) under programs of the federal government for the year ending May 31, 2022. 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 consolidated 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 table in SEFA Note 3.
Title: SUBRECIPIENTS, NON-CASH ASSISTANCE, FEDERAL INSURANCE, LOANS, AND LOAN GUAR Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of University of the Southwest (the University) under programs of the federal government for the year ending May 31, 2022. 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 consolidated 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.

Finding Details

Finding 2022-001
Incorrect and Untimely Return of Title IV (R2T4) Funds Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2021-22 Financial Aid Year Condition: When students in a modular program withdrew either officially or unofficially, the University incorrectly identified students who needed an R2T4 completed. Criteria: 34 CFR 668.22 Questioned Costs: $7,969 Context: Out of 28 students tested for accurate and timely returns, there were 6 students who had either earned failing grades or met an exemption under the new R2T4 modular withdraw regulations and did not require an R2T4 to be completed. This resulted in the University returning $2,573 in Pell and $8,172 in Federal Direct Loans to the Department of Education (ED) even though the students were eligible for those funds. There were an additional 2 students that had wrong amounts calculated for the R2T4 which led to $4,583 that should have been returned to ED and 1 student with a late return totaling $3,356. All these students were corrected during the audit. Cause: Due to the complexity of the new modular regulations the University was not able to comply with Title IV regulations for timely and accurate returns. Effect: Noncompliance with new R2T4 regulations regarding withdrawals for modular students, late returns to Title IV, and inaccurate amounts returned to Title IV. Identification as repeat finding, if applicable: 2021-003 Recommendation: We recommend an individual in financial aid periodically review modular students? R2T4 calculations and returns to help ensure that internal controls over such process can operate effectively and achieve compliance. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2022-001
Incorrect and Untimely Return of Title IV (R2T4) Funds Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2021-22 Financial Aid Year Condition: When students in a modular program withdrew either officially or unofficially, the University incorrectly identified students who needed an R2T4 completed. Criteria: 34 CFR 668.22 Questioned Costs: $7,969 Context: Out of 28 students tested for accurate and timely returns, there were 6 students who had either earned failing grades or met an exemption under the new R2T4 modular withdraw regulations and did not require an R2T4 to be completed. This resulted in the University returning $2,573 in Pell and $8,172 in Federal Direct Loans to the Department of Education (ED) even though the students were eligible for those funds. There were an additional 2 students that had wrong amounts calculated for the R2T4 which led to $4,583 that should have been returned to ED and 1 student with a late return totaling $3,356. All these students were corrected during the audit. Cause: Due to the complexity of the new modular regulations the University was not able to comply with Title IV regulations for timely and accurate returns. Effect: Noncompliance with new R2T4 regulations regarding withdrawals for modular students, late returns to Title IV, and inaccurate amounts returned to Title IV. Identification as repeat finding, if applicable: 2021-003 Recommendation: We recommend an individual in financial aid periodically review modular students? R2T4 calculations and returns to help ensure that internal controls over such process can operate effectively and achieve compliance. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2022-001
Incorrect and Untimely Return of Title IV (R2T4) Funds Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2021-22 Financial Aid Year Condition: When students in a modular program withdrew either officially or unofficially, the University incorrectly identified students who needed an R2T4 completed. Criteria: 34 CFR 668.22 Questioned Costs: $7,969 Context: Out of 28 students tested for accurate and timely returns, there were 6 students who had either earned failing grades or met an exemption under the new R2T4 modular withdraw regulations and did not require an R2T4 to be completed. This resulted in the University returning $2,573 in Pell and $8,172 in Federal Direct Loans to the Department of Education (ED) even though the students were eligible for those funds. There were an additional 2 students that had wrong amounts calculated for the R2T4 which led to $4,583 that should have been returned to ED and 1 student with a late return totaling $3,356. All these students were corrected during the audit. Cause: Due to the complexity of the new modular regulations the University was not able to comply with Title IV regulations for timely and accurate returns. Effect: Noncompliance with new R2T4 regulations regarding withdrawals for modular students, late returns to Title IV, and inaccurate amounts returned to Title IV. Identification as repeat finding, if applicable: 2021-003 Recommendation: We recommend an individual in financial aid periodically review modular students? R2T4 calculations and returns to help ensure that internal controls over such process can operate effectively and achieve compliance. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2022-001
Incorrect and Untimely Return of Title IV (R2T4) Funds Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2021-22 Financial Aid Year Condition: When students in a modular program withdrew either officially or unofficially, the University incorrectly identified students who needed an R2T4 completed. Criteria: 34 CFR 668.22 Questioned Costs: $7,969 Context: Out of 28 students tested for accurate and timely returns, there were 6 students who had either earned failing grades or met an exemption under the new R2T4 modular withdraw regulations and did not require an R2T4 to be completed. This resulted in the University returning $2,573 in Pell and $8,172 in Federal Direct Loans to the Department of Education (ED) even though the students were eligible for those funds. There were an additional 2 students that had wrong amounts calculated for the R2T4 which led to $4,583 that should have been returned to ED and 1 student with a late return totaling $3,356. All these students were corrected during the audit. Cause: Due to the complexity of the new modular regulations the University was not able to comply with Title IV regulations for timely and accurate returns. Effect: Noncompliance with new R2T4 regulations regarding withdrawals for modular students, late returns to Title IV, and inaccurate amounts returned to Title IV. Identification as repeat finding, if applicable: 2021-003 Recommendation: We recommend an individual in financial aid periodically review modular students? R2T4 calculations and returns to help ensure that internal controls over such process can operate effectively and achieve compliance. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.