Audit 387171

FY End
2025-06-30
Total Expended
$42.90M
Findings
8
Programs
18
Year: 2025 Accepted: 2026-02-13

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
1173450 2025-003 Material Weakness Yes N
1173451 2025-004 Material Weakness Yes N
1173452 2025-006 Material Weakness Yes E
1173453 2025-002 Material Weakness Yes C
1173454 2025-002 Material Weakness Yes C
1173455 2025-003 Material Weakness Yes N
1173456 2025-004 Material Weakness Yes N
1173457 2025-005 Material Weakness Yes E

Programs

ALN Program Spent Major Findings
84.268 FEDERAL DIRECT STUDENT LOANS $16.91M Yes 4
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $11.19M Yes 0
84.063 FEDERAL PELL GRANT PROGRAM $10.61M Yes 3
15.114 INDIAN EDUCATION HIGHER EDUCATION GRANT $1.58M Yes 0
93.558 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES $791,018 Yes 0
84.047 TRIO UPWARD BOUND $453,496 Yes 0
84.033 FEDERAL WORK-STUDY PROGRAM $270,887 Yes 0
93.426 THE NATIONAL CARDIOVASCULAR HEALTH PROGRAM $202,947 Yes 0
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $202,486 Yes 1
84.425 EDUCATION STABILIZATION FUND $100,291 Yes 0
43.001 SCIENCE $77,455 Yes 0
93.RD HHS RESEARCH $71,204 Yes 0
47.076 STEM EDUCATION (FORMERLY EDUCATION AND HUMAN RESOURCES) $51,080 Yes 0
47.083 INTEGRATIVE ACTIVITIES $46,756 Yes 0
84.031 HIGHER EDUCATION INSTITUTIONAL AID $39,941 Yes 0
84.184 SCHOOL SAFELY NATIONAL ACTIVITIES $28,786 Yes 0
64.116 VETERAN READINESS AND EMPLOYMENT $27,609 Yes 0
93.859 BIOMEDICAL RESEARCH AND RESEARCH TRAINING $187 Yes 0

Contacts

Name Title Type
PLPHAKVSJUZ6 Lori Boyd Auditee
5807743731 Melissa Hull Auditor
No contacts on file

Notes to SEFA

The accompanying Schedule of Expenditures of Federal Awards (“Schedule”) includes the federal award activity of Southwestern Oklahoma State University (“University”) under programs of the federal government for the year ended June 30, 2025. The information in this Schedule is presented in accordance with the requirements of 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 position, or cash flows of the University.
The University participates in the Federal Direct Loan Program (“Program”), Assistance Listing Number 84.268, which includes the Federal Subsidized Direct Loan, the Federal Unsubsidized Direct Loan, the Federal Graduate Student PLUS Direct Loan, and the Federal Direct Loans Parents of Undergraduate Students. The Program requires the University to draw down cash, and the University is required to perform certain administrative functions under the Program. Failure to perform such functions may require the University to reimburse the loan guarantee agencies. The University is not responsible for the collection of these loans. The value of loans made during the audit period is considered federal awards expended for the audit period.
During the year ended June 30, 2025, the University had no federal awards to a sub-recipient.

Finding Details

Federal Program – Student Financial Assistance Cluster – Assistance Listing Number 84.063 – U.S. Department of Education Program Year 2024–2025 Criteria or Specific Requirement – Eligibility – 34 CFR §690, Subpart F Condition – Five students received a Pell Grant who were not eligible to receive this funding, and two students did not receive a Pell Grant or the full amount of Pell Grant funding they were eligible to receive during the 2024–2025 academic year. Questioned Costs – $3,996 Context – Out of a population of 2,868 students who received Pell and/or Direct Loans in fiscal year 2025, 25 students were selected for testing. Of the 25 students tested, two were identified as not having received the full amount of Pell funding for which they were eligible. In addition, in testing return of Title IV funds, one student was noted to have received more Pell funding than they were eligible for, and upon further review, management identified an additional four students who received Pell funding who should not have. Our sample was not, and was not intended to be, statistically valid. Effect – The University disbursed $3,996 of Title IV funds to students who were not eligible for this funding, and two students did not receive the full amount of funding for which they were eligible. Cause – The University did not have appropriate controls in place to ensure Pell calculations were accurate prior to disbursing funding to students. Identification as a Repeat Finding – N/A Recommendation – The University should ensure the design and appropriate operating effectiveness of controls surrounding the review of Pell calculations prior to the disbursement of funds to students. Views of Responsible Officials and Planned Corrective Actions – Management agrees with the finding. See attached corrective action plan.
Federal Program – Student Financial Assistance Cluster – Assistance Listing Numbers 84.007, Federal Supplemental Education Opportunity Grants and 84.268, Federal Direct Student Loans – U.S. Department of Education Program Year 2024–2025 Criteria or Specific Requirement – Cash Management – 34 CFR §668 Subpart K Condition – The University maintained $163,740 of excess cash for the Federal Supplemental Educational Opportunity Grants and Federal Direct Student Loans programs for approximately two months (July 25, 2024 through September 19, 2024), which exceeds the seven-day excess cash tolerance window outlined in 34 CFR §668.166. Questioned Costs – N/A Context – Out of a population of 23 cash drawdowns during fiscal year 2025, three were selected for testing. One of these drawdowns was not compliant with the cash management requirements. Our sample was not, and was not intended to be, statistically valid. Effect – The University did not appropriately return excess cash to the U.S. Department of Education and, therefore, was out of compliance with excess cash compliance requirements. Cause – The University did not have appropriate controls in place to ensure compliance with relevant requirements. Identification as a Repeat Finding – N/A Recommendation – The University should ensure the design and appropriate operating effectiveness of controls surrounding cash management compliance to ensure that all cash drawdowns are made and distributed to students in accordance with the relevant compliance requirements. Views of Responsible Officials and Planned Corrective Actions – Management agrees with the finding. See attached corrective action plan.
Federal Program – Student Financial Assistance Cluster – Assistance Listing Numbers 84.063, Federal Pell Grant Program and 84.268, Federal Direct Student Loans – U.S. Department of Education Program Year 2024–2025 Criteria or Specific Requirement – Special Tests and Provisions – NSLDS Reporting – 34 CFR §690.83 and 34 CFR §685.309 Condition – One student status change was not reported timely, and inaccurate program-level record data was reported for four students. Questioned Costs – N/A Context – Out of a population of 2,595 students with status changes during the Fall and Spring semesters of the 2025 aid year, 25 were selected for testing. Of those students, one had a status change that was not reported timely, and four had program-level record data that was not appropriately reported. Our sample was not, and was not intended to be, statistically valid. Effect – The University reported inaccurate information or failed to report changes within the required time frame and, as such, the U.S. Department of Education was not provided accurate and timely information. Cause – The University did not have appropriate controls in place to ensure timely and accurate reporting. Identification as a Repeat Finding – See 2024-003 Recommendation – The University should ensure the design and appropriate operating effectiveness of controls surrounding enrollment reporting to ensure that all status changes are reported timely and that all program-level record data is reported accurately. Views of Responsible Officials and Planned Corrective Actions – Management agrees with the finding. See attached corrective action plan.
Federal Program – Student Financial Assistance Cluster – Assistance Listing Numbers 84.063, Federal Pell Grant Program and 84.268, Federal Direct Student Loans – U.S. Department of Education Program Year 2024–2025 Criteria or Specific Requirement – Special Tests and Provisions – Return of Title IV Funds – 34 CFR §668.22 Condition – The incorrect number of days for spring break was used in the Spring 2025 Return of Title IV calculations, causing amounts due back to the U.S. Department of Education to not be properly identified and returned. Questioned Costs – $125.30 – $48.02 for 84.063, Federal Pell Grant Program and $77.28 for 84.268, Federal Direct Student Loans Context – Out of a population of 118 students who withdrew during fiscal year 2025, 13 were selected for testing. Of the 13 tested, two were identified to have errors in their Return of Title IV calculations, which were caused by the inappropriate number of days used for spring break. Management further investigated the impact on other students who withdrew in Spring 2025 and an additional nine students were identified as being impacted by this error. Effect – The University allowed students to maintain a total of $125.30 of Title IV funds that should have been returned to the U.S. Department of Education. Cause – The University did not have appropriate controls in place to ensure the accuracy of disbursements and Return of Title IV calculations. Identification as a Repeat Finding – N/A Recommendation – The University should ensure the design and appropriate operating effectiveness of controls surrounding Return of Title IV Funds to ensure that all returns of funds are appropriately calculated and processed. Views of Responsible Officials and Planned Corrective Actions – Management agrees with the finding. See attached corrective action plan.
Federal Program – Student Financial Assistance Cluster – Assistance Listing Number 84.268, Federal Direct Student Loans – U.S. Department of Education Program Year 2024–2025 Criteria or Specific Requirement – Eligibility – 34 CFR §668.34 Condition – One student who received a Direct Unsubsidized Loan for the Spring 2025 semester did not meet the maximum timeframe element of the satisfactory academic progress requirements as of the beginning of that semester. Questioned Costs – $2,919 Context – Out of a population of 2,868 students who received Pell and/or Direct Loans in fiscal year 2025, 25 students were selected for testing. Of the 25 students tested, one was identified as not meeting the maximum timeframe satisfactory academic progress requirement and, therefore, was ineligible to receive the funding received for the Spring 2025 term. Our sample was not, and was not intended to be, statistically valid. Effect – The University disbursed $2,919 of Title IV funds to a student who was not eligible for this funding. Cause – The University did not have appropriate controls in place to ensure satisfactory academic progress requirements were properly met prior to disbursing funding to students. Identification as a Repeat Finding – N/A Recommendation – The University should ensure the design and appropriate operating effectiveness of controls surrounding the review of satisfactory academic progress prior to the disbursement of funds to students. Views of Responsible Officials and Planned Corrective Actions – Management agrees with the finding. See attached corrective action plan.