Audit 373962

FY End
2025-06-30
Total Expended
$7.68M
Findings
1
Programs
6
Organization: Oklahoma Wesleyan University (OK)
Year: 2025 Accepted: 2025-12-11

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
1164451 2025-001 Material Weakness Yes L

Contacts

Name Title Type
JJMWYHKXKRJ6 Mike Hood Auditee
9183356836 Robert M. Simmons Auditor
No contacts on file

Notes to SEFA

During the fiscal year ended June 30, 2025, 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): Federal Direct Student Loans AL Number 84.268 Amount Authorized $5,587,282
Included in the Federal PELL Grant expenditures is an administrative cost allowance of $1,740.
The following is included as Federal Supplemental Educational Opportunity Grant (FSEOG) expenditures: Federal share of grants $115,959 Institutional share of grants 38,653 Total FSEOG Expenditures $154,612
The following is included as Federal Work Study (FWS) expenditures: Federal share of Federal Work Study wages $105,456 Institutional share of Federal Work Study wages 35,130 Administrative cost allowance 11,068 Total FWS Expenditures $151,654
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 credit losses, was $55,127 at June 30, 2025. 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.

Finding Details

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 ($5,587,282) Award Number: P268K252030 Federal Award Year: July 1, 2024 to June 30, 2025 Questioned Costs: N/A Condition Found: The incorrect effective date of an enrollment status change was reported to the National Student Loan Database System (“NSLDS”) for five of the forty-three 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: All five of the students withdrew during the semester. NSLDS was originally updated timely with the correct withdrawal date. However, a later update changed the effective date of the withdrawal to the last date of the semester. Possible Asserted Effect: The loan servicers were not aware of the correct deferral, repayment, and interest calculation dates. Repeat Finding: There was not a similar finding in the prior year. 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: Management agrees with the auditors’ finding and their recommendation. The NSLDS withdrawal date was updated for one of the students in question before the audit began on July 7, 2025. The withdrawal dates for the remaining four students were updated in August 2025. The student financial office will review withdrawal dates for students who leave during the semester to ensure the dates are not changed to the last date of the semester.