FAC Explorer

Audit 349900

FY End
2024-06-30
Total Expended
$48.20M
Findings
10
Programs
9
Organization: Eastern University (PA)
Year: 2024 Accepted: 2025-03-28
Auditor: Capincrouse LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
539367 2024-001 Significant Deficiency Yes N
539368 2024-002 - - N
539369 2024-001 Significant Deficiency Yes N
539370 2024-002 - - N
539371 2024-002 - - N
1115809 2024-001 Significant Deficiency Yes N
1115810 2024-002 - - N
1115811 2024-001 Significant Deficiency Yes N
1115812 2024-002 - - N
1115813 2024-002 - - N

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $39.16M Yes 2
84.063 Federal Pell Grant Program $4.91M Yes 2
11.028 Connecting Minority Communities Pilot Program $1.51M Yes 0
84.184 School Safely National Activities $1.20M Yes 0
84.031 Higher Education Institutional Aid - Developing Hispanic Serving Institutions $660,305 - 0
84.007 Federal Supplemental Educational Opportunity Grants $305,294 Yes 1
84.033 Federal Work-Study Program $242,690 Yes 0
84.038 Federal Perkins Loan Program $166,931 Yes 0
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $39,637 Yes 0

Contacts

Name Title Type
HEJ8RLLYCJH5 Trevor S. Jackson Auditee
6102255699 Brent Smith, 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 Eastern University (University) under programs of the federal government for the year ended June 30, 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: Y Rate Explanation: The auditee did use the de minimis cost rate. See the Notes to the SEFA for chart/table
Title: 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 Eastern University (University) under programs of the federal government for the year ended June 30, 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: Y Rate Explanation: The auditee did use the de minimis cost rate. The University did not 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 Eastern University (University) under programs of the federal government for the year ended June 30, 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: Y Rate Explanation: The auditee did 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 Eastern University (University) under programs of the federal government for the year ended June 30, 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: Y Rate Explanation: The auditee did use the de minimis cost rate. To maintain institutional 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 of 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 (R2T4) Funds Calculations and Untimely Returns Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268 and 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: When students withdrew either officially or unofficially, the University did not always return unearned Title IV aid accurately and timely. Title IV funds disbursed were not always returned when students failed to begin attendance. Criteria: 34 CFR 668.21 and 34 CFR 668.22 Questioned Costs: $5,217 Context: Out of 60 students tested, we noted 4 students who withdrew did not have a return completed accurately and timely. These 4 students in total had $1,510 of Pell and $2,388 of Federal Direct Loans under returned and included in questioned costs. 1 student of these 4 also had a Pell adjustment error for $925 that should have been returned prior to the R2T4 calculation. Out of 60 students tested, we also noted 1 online student that did not begin attendance and received a disbursement of $1,319 of Federal Direct Loans which should have been returned entirely and is included in questioned costs. The University has corrected some of these errors during the audit and during an ED program review. Cause: This was an oversight by the University. Effect: Return of Title IV funds calculations were not performed timely and a student who did not begin attendance was disbursed aid. Identification as repeat finding, if applicable: 2023-001. Recommendation: We recommend that the University continue to work on running zero credit reports at the end of each module or semester and that these reports provide all the necessary information for financial aid to complete R2T4’s accurately and timely. We also recommend that for online students, evidence of academic engagement be required prior to disbursing aid. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-002
Verification DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063, and 84.007 Federal Award Identification #: 2023-2024 Award Year Condition: Verification was incorrectly waived and not completed for 2 students who received need based federal aid. Criteria: 34 CFR 668.54 Questioned Costs: $28,874 Context: Out of 281 students selected for verification from the Central Processing System that had federal aid, we noted verification was not completed on 5 students that were included in our sample of 25. We noted 2 of these students that did not have verification completed were disbursed need based federal financial aid. The need based federal aid disbursed to these students included $2,990 in Pell, $7,918 in subsidized direct loans, and $1,660 in FSEOG. The students were also disbursed $3,960 in unsubsidized direct loans and $12,346 in parent plus loans. Cause: Verification was incorrectly waived in the system. There was no review process to ensure that students selected for verification with a status of verification not completed did not receive need based federal aid. Effect: Need based aid is impacted directly by the results of verification. Identification as repeat finding, if applicable: N/A Recommendation: We recommend the University periodically review students selected for verification with a status of verification not completed to ensure they did not receive need based federal aid. 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 (R2T4) Funds Calculations and Untimely Returns Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268 and 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: When students withdrew either officially or unofficially, the University did not always return unearned Title IV aid accurately and timely. Title IV funds disbursed were not always returned when students failed to begin attendance. Criteria: 34 CFR 668.21 and 34 CFR 668.22 Questioned Costs: $5,217 Context: Out of 60 students tested, we noted 4 students who withdrew did not have a return completed accurately and timely. These 4 students in total had $1,510 of Pell and $2,388 of Federal Direct Loans under returned and included in questioned costs. 1 student of these 4 also had a Pell adjustment error for $925 that should have been returned prior to the R2T4 calculation. Out of 60 students tested, we also noted 1 online student that did not begin attendance and received a disbursement of $1,319 of Federal Direct Loans which should have been returned entirely and is included in questioned costs. The University has corrected some of these errors during the audit and during an ED program review. Cause: This was an oversight by the University. Effect: Return of Title IV funds calculations were not performed timely and a student who did not begin attendance was disbursed aid. Identification as repeat finding, if applicable: 2023-001. Recommendation: We recommend that the University continue to work on running zero credit reports at the end of each module or semester and that these reports provide all the necessary information for financial aid to complete R2T4’s accurately and timely. We also recommend that for online students, evidence of academic engagement be required prior to disbursing aid. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-002
Verification DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063, and 84.007 Federal Award Identification #: 2023-2024 Award Year Condition: Verification was incorrectly waived and not completed for 2 students who received need based federal aid. Criteria: 34 CFR 668.54 Questioned Costs: $28,874 Context: Out of 281 students selected for verification from the Central Processing System that had federal aid, we noted verification was not completed on 5 students that were included in our sample of 25. We noted 2 of these students that did not have verification completed were disbursed need based federal financial aid. The need based federal aid disbursed to these students included $2,990 in Pell, $7,918 in subsidized direct loans, and $1,660 in FSEOG. The students were also disbursed $3,960 in unsubsidized direct loans and $12,346 in parent plus loans. Cause: Verification was incorrectly waived in the system. There was no review process to ensure that students selected for verification with a status of verification not completed did not receive need based federal aid. Effect: Need based aid is impacted directly by the results of verification. Identification as repeat finding, if applicable: N/A Recommendation: We recommend the University periodically review students selected for verification with a status of verification not completed to ensure they did not receive need based federal aid. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-002
Verification DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063, and 84.007 Federal Award Identification #: 2023-2024 Award Year Condition: Verification was incorrectly waived and not completed for 2 students who received need based federal aid. Criteria: 34 CFR 668.54 Questioned Costs: $28,874 Context: Out of 281 students selected for verification from the Central Processing System that had federal aid, we noted verification was not completed on 5 students that were included in our sample of 25. We noted 2 of these students that did not have verification completed were disbursed need based federal financial aid. The need based federal aid disbursed to these students included $2,990 in Pell, $7,918 in subsidized direct loans, and $1,660 in FSEOG. The students were also disbursed $3,960 in unsubsidized direct loans and $12,346 in parent plus loans. Cause: Verification was incorrectly waived in the system. There was no review process to ensure that students selected for verification with a status of verification not completed did not receive need based federal aid. Effect: Need based aid is impacted directly by the results of verification. Identification as repeat finding, if applicable: N/A Recommendation: We recommend the University periodically review students selected for verification with a status of verification not completed to ensure they did not receive need based federal aid. 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 (R2T4) Funds Calculations and Untimely Returns Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268 and 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: When students withdrew either officially or unofficially, the University did not always return unearned Title IV aid accurately and timely. Title IV funds disbursed were not always returned when students failed to begin attendance. Criteria: 34 CFR 668.21 and 34 CFR 668.22 Questioned Costs: $5,217 Context: Out of 60 students tested, we noted 4 students who withdrew did not have a return completed accurately and timely. These 4 students in total had $1,510 of Pell and $2,388 of Federal Direct Loans under returned and included in questioned costs. 1 student of these 4 also had a Pell adjustment error for $925 that should have been returned prior to the R2T4 calculation. Out of 60 students tested, we also noted 1 online student that did not begin attendance and received a disbursement of $1,319 of Federal Direct Loans which should have been returned entirely and is included in questioned costs. The University has corrected some of these errors during the audit and during an ED program review. Cause: This was an oversight by the University. Effect: Return of Title IV funds calculations were not performed timely and a student who did not begin attendance was disbursed aid. Identification as repeat finding, if applicable: 2023-001. Recommendation: We recommend that the University continue to work on running zero credit reports at the end of each module or semester and that these reports provide all the necessary information for financial aid to complete R2T4’s accurately and timely. We also recommend that for online students, evidence of academic engagement be required prior to disbursing aid. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-002
Verification DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063, and 84.007 Federal Award Identification #: 2023-2024 Award Year Condition: Verification was incorrectly waived and not completed for 2 students who received need based federal aid. Criteria: 34 CFR 668.54 Questioned Costs: $28,874 Context: Out of 281 students selected for verification from the Central Processing System that had federal aid, we noted verification was not completed on 5 students that were included in our sample of 25. We noted 2 of these students that did not have verification completed were disbursed need based federal financial aid. The need based federal aid disbursed to these students included $2,990 in Pell, $7,918 in subsidized direct loans, and $1,660 in FSEOG. The students were also disbursed $3,960 in unsubsidized direct loans and $12,346 in parent plus loans. Cause: Verification was incorrectly waived in the system. There was no review process to ensure that students selected for verification with a status of verification not completed did not receive need based federal aid. Effect: Need based aid is impacted directly by the results of verification. Identification as repeat finding, if applicable: N/A Recommendation: We recommend the University periodically review students selected for verification with a status of verification not completed to ensure they did not receive need based federal aid. 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 (R2T4) Funds Calculations and Untimely Returns Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268 and 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: When students withdrew either officially or unofficially, the University did not always return unearned Title IV aid accurately and timely. Title IV funds disbursed were not always returned when students failed to begin attendance. Criteria: 34 CFR 668.21 and 34 CFR 668.22 Questioned Costs: $5,217 Context: Out of 60 students tested, we noted 4 students who withdrew did not have a return completed accurately and timely. These 4 students in total had $1,510 of Pell and $2,388 of Federal Direct Loans under returned and included in questioned costs. 1 student of these 4 also had a Pell adjustment error for $925 that should have been returned prior to the R2T4 calculation. Out of 60 students tested, we also noted 1 online student that did not begin attendance and received a disbursement of $1,319 of Federal Direct Loans which should have been returned entirely and is included in questioned costs. The University has corrected some of these errors during the audit and during an ED program review. Cause: This was an oversight by the University. Effect: Return of Title IV funds calculations were not performed timely and a student who did not begin attendance was disbursed aid. Identification as repeat finding, if applicable: 2023-001. Recommendation: We recommend that the University continue to work on running zero credit reports at the end of each module or semester and that these reports provide all the necessary information for financial aid to complete R2T4’s accurately and timely. We also recommend that for online students, evidence of academic engagement be required prior to disbursing aid. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-002
Verification DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063, and 84.007 Federal Award Identification #: 2023-2024 Award Year Condition: Verification was incorrectly waived and not completed for 2 students who received need based federal aid. Criteria: 34 CFR 668.54 Questioned Costs: $28,874 Context: Out of 281 students selected for verification from the Central Processing System that had federal aid, we noted verification was not completed on 5 students that were included in our sample of 25. We noted 2 of these students that did not have verification completed were disbursed need based federal financial aid. The need based federal aid disbursed to these students included $2,990 in Pell, $7,918 in subsidized direct loans, and $1,660 in FSEOG. The students were also disbursed $3,960 in unsubsidized direct loans and $12,346 in parent plus loans. Cause: Verification was incorrectly waived in the system. There was no review process to ensure that students selected for verification with a status of verification not completed did not receive need based federal aid. Effect: Need based aid is impacted directly by the results of verification. Identification as repeat finding, if applicable: N/A Recommendation: We recommend the University periodically review students selected for verification with a status of verification not completed to ensure they did not receive need based federal aid. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-002
Verification DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063, and 84.007 Federal Award Identification #: 2023-2024 Award Year Condition: Verification was incorrectly waived and not completed for 2 students who received need based federal aid. Criteria: 34 CFR 668.54 Questioned Costs: $28,874 Context: Out of 281 students selected for verification from the Central Processing System that had federal aid, we noted verification was not completed on 5 students that were included in our sample of 25. We noted 2 of these students that did not have verification completed were disbursed need based federal financial aid. The need based federal aid disbursed to these students included $2,990 in Pell, $7,918 in subsidized direct loans, and $1,660 in FSEOG. The students were also disbursed $3,960 in unsubsidized direct loans and $12,346 in parent plus loans. Cause: Verification was incorrectly waived in the system. There was no review process to ensure that students selected for verification with a status of verification not completed did not receive need based federal aid. Effect: Need based aid is impacted directly by the results of verification. Identification as repeat finding, if applicable: N/A Recommendation: We recommend the University periodically review students selected for verification with a status of verification not completed to ensure they did not receive need based federal aid. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.