Audit 45056

FY End
2022-06-30
Total Expended
$39.08M
Findings
6
Programs
9
Year: 2022 Accepted: 2022-11-02

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
52383 2022-002 Significant Deficiency Yes N
52384 2022-001 Significant Deficiency - E
52385 2022-001 Significant Deficiency - E
628825 2022-002 Significant Deficiency Yes N
628826 2022-001 Significant Deficiency - E
628827 2022-001 Significant Deficiency - E

Contacts

Name Title Type
NDWSAHDCNFJ8 David Gilmore Auditee
6179894328 Michelle E. Spriggs Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures 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 are limited as to reimbursement. The University has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The University has not passed through any amounts to subrecipients during the year ended June 30, 2022. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Wentworth Institute of Technology, Inc. (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 of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the 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.
Title: Federal Student Loan Program Accounting Policies: Expenditures 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 are limited as to reimbursement. The University has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The University has not passed through any amounts to subrecipients during the year ended June 30, 2022. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The federal student loan program listed subsequently is administered directly by the University and balances and transactions relating to this program are included in the Universitys basic financial statements. Loans outstanding at the beginning of the year are included in the federal expenditures presented in the Schedule. The program has been terminated by the Department of Education and therefore no new loans were made during the year ended June 30, 2022. The balance of loans outstanding at June 30, 2022 consists of: FEDERAL PERKINS LOAN PROGRAM (Assistance Listing Number: 84.038) - Balances outstanding at the end of the audit period were $2,233,471.
Title: Higher Education Emergency Relief Fund Accounting Policies: Expenditures 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 are limited as to reimbursement. The University has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The University has not passed through any amounts to subrecipients during the year ended June 30, 2022. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The University was awarded funds for student and institutional purposes under the Higher Education Emergency Relief Fund program (HEERF). These funds are administered directly by the University. Amounts expended for the year ended June 30, 2022, as well as for years ended June 30, 2021 and prior, for both the student and institutional portion of the program are included in Federal expenditures presented in the Schedule. HEERF activity for the year ended June 30, 2022 is as follows: SEE FINANCIAL STATEMENTS FOR TABLE.

Finding Details

Finding ? Special Tests and Provisions: Enrollment Reporting ? Federal Direct Student Loans, Assistance Listing Number 84.268; June 30, 2022 Award Year; U.S. Department of Education Criteria or Specific Enrollment information, including the effective date of separation from the institution, must be accurately reported within 30 days whenever attendance changes for a student, unless a roster will be submitted within 60 days. The changes include reductions or increases in attendance levels, withdrawals, graduations, and approved leaves-of absence. It is the institution?s responsibility, as a participant in the Title IV aid programs, to monitor and report these changes to the National Student Loan Data System (?NSLDS?). (NSLDS Enrollment Reporting Guide September 2021, and 34 CFR 685.309(b)) Condition Of the 40 students selected for enrollment reporting testing, two students within the sample were reported to NSLDS outside the maximum 60-day window. Additionally, the status of one student was inaccurately reported. This was not a statistically valid sample. Cause For two students, the correct date of separation was reported by the University timely, within the 60-day window, to the National Student Clearinghouse (?NSC?). The end of the 60-day window lapsed between the date NSC received the data and the date that NSC communicated the data to NSLDS. Additionally, one student was enroll in continuous module courses. Upon completion of the first, the University reported this student as withdrawn when in fact they were still enrolled. Effect A student?s enrollment status determines eligibility for in-school status, deferment, grace periods, and repayments, as well as the government?s payment of interest subsidies. The notification of student status changes to NSLDS will cause a student to enter into a grace period and determine a repayment date and, therefore, accurate and timely notification of student status to NSLDS is important. Questioned Costs None noted. Identification as a Repeat Finding This is a repeat finding in 2022 and corrective action remains ongoing. See 2021-001. Recommendation The University should remain vigilant in its oversight over timely communication of enrollment reporting detail from NSC to NSLDS as it is the University?s responsibility to ensure this information is received timely by NSLDS, regardless of whether an intermediate party is used. Views of Responsible Officials and Corrective Actions See corrective action plan
Finding ? Eligibility - Student Financial Assistance Cluster, all CFDA #'s included on Schedule of Expenditures of Federal Awards, June 30, 2022 Award Year; U.S. Department of Education Criteria or Specific Requirement The annual maximum loan amount an undergraduate student may receive must be prorated when the borrower is enrolled in a program that is shorter than a full academic year; or enrolled in a program that is one academic year or more in length, but is in a remaining period of study that is shorter than a full academic year. (2021 - 2022 Student Financial Aid Bank Book, Volume 3, Chapter 5, Page 3-160, 34 CFR 685.203(a),(b),(c)) The amount of a student's Pell Grant for an academic year is based upon the payment and disbursement schedules published by the Secretary for each award year. (2021 - 2022 Student Financial Aid Handbook, Volume 3, Chapter 3, Page 3-68, 34 CFR 690.62) Condition Of the 40 students selected for eligibility testing, two students within the sample were incorrectly awarded aid based upon their specific circumstances. This was not a statistically valid sample. Cause In one instance, a student was over awarded Direct Loans. The student's remaining period of study was less than one full academic year, as they graduated at the completion of the fall semester. As such, loan proration is required. The student received a full year's worth of Direct Loans. In one instance, a student was under awarded Pell Grant funds. An updated ISIR was issued following the award packaging process. The University did not correct the Pell Grant award following this correction. Effect The University's system of internal control did not prevent or detect these instances, thus, these students were either over or under awarded Title IV aid. Questioned Costs $3,324 Identification as a Repeat Finding This is not a repeat finding. Recommendation The University should implement periodic quality control reports to allow for further accuracy checks. Views of Responsible Officials and Corrective Actions See corrective action plan.
Finding ? Eligibility - Student Financial Assistance Cluster, all CFDA #'s included on Schedule of Expenditures of Federal Awards, June 30, 2022 Award Year; U.S. Department of Education Criteria or Specific Requirement The annual maximum loan amount an undergraduate student may receive must be prorated when the borrower is enrolled in a program that is shorter than a full academic year; or enrolled in a program that is one academic year or more in length, but is in a remaining period of study that is shorter than a full academic year. (2021 - 2022 Student Financial Aid Bank Book, Volume 3, Chapter 5, Page 3-160, 34 CFR 685.203(a),(b),(c)) The amount of a student's Pell Grant for an academic year is based upon the payment and disbursement schedules published by the Secretary for each award year. (2021 - 2022 Student Financial Aid Handbook, Volume 3, Chapter 3, Page 3-68, 34 CFR 690.62) Condition Of the 40 students selected for eligibility testing, two students within the sample were incorrectly awarded aid based upon their specific circumstances. This was not a statistically valid sample. Cause In one instance, a student was over awarded Direct Loans. The student's remaining period of study was less than one full academic year, as they graduated at the completion of the fall semester. As such, loan proration is required. The student received a full year's worth of Direct Loans. In one instance, a student was under awarded Pell Grant funds. An updated ISIR was issued following the award packaging process. The University did not correct the Pell Grant award following this correction. Effect The University's system of internal control did not prevent or detect these instances, thus, these students were either over or under awarded Title IV aid. Questioned Costs $3,324 Identification as a Repeat Finding This is not a repeat finding. Recommendation The University should implement periodic quality control reports to allow for further accuracy checks. Views of Responsible Officials and Corrective Actions See corrective action plan.
Finding ? Special Tests and Provisions: Enrollment Reporting ? Federal Direct Student Loans, Assistance Listing Number 84.268; June 30, 2022 Award Year; U.S. Department of Education Criteria or Specific Enrollment information, including the effective date of separation from the institution, must be accurately reported within 30 days whenever attendance changes for a student, unless a roster will be submitted within 60 days. The changes include reductions or increases in attendance levels, withdrawals, graduations, and approved leaves-of absence. It is the institution?s responsibility, as a participant in the Title IV aid programs, to monitor and report these changes to the National Student Loan Data System (?NSLDS?). (NSLDS Enrollment Reporting Guide September 2021, and 34 CFR 685.309(b)) Condition Of the 40 students selected for enrollment reporting testing, two students within the sample were reported to NSLDS outside the maximum 60-day window. Additionally, the status of one student was inaccurately reported. This was not a statistically valid sample. Cause For two students, the correct date of separation was reported by the University timely, within the 60-day window, to the National Student Clearinghouse (?NSC?). The end of the 60-day window lapsed between the date NSC received the data and the date that NSC communicated the data to NSLDS. Additionally, one student was enroll in continuous module courses. Upon completion of the first, the University reported this student as withdrawn when in fact they were still enrolled. Effect A student?s enrollment status determines eligibility for in-school status, deferment, grace periods, and repayments, as well as the government?s payment of interest subsidies. The notification of student status changes to NSLDS will cause a student to enter into a grace period and determine a repayment date and, therefore, accurate and timely notification of student status to NSLDS is important. Questioned Costs None noted. Identification as a Repeat Finding This is a repeat finding in 2022 and corrective action remains ongoing. See 2021-001. Recommendation The University should remain vigilant in its oversight over timely communication of enrollment reporting detail from NSC to NSLDS as it is the University?s responsibility to ensure this information is received timely by NSLDS, regardless of whether an intermediate party is used. Views of Responsible Officials and Corrective Actions See corrective action plan
Finding ? Eligibility - Student Financial Assistance Cluster, all CFDA #'s included on Schedule of Expenditures of Federal Awards, June 30, 2022 Award Year; U.S. Department of Education Criteria or Specific Requirement The annual maximum loan amount an undergraduate student may receive must be prorated when the borrower is enrolled in a program that is shorter than a full academic year; or enrolled in a program that is one academic year or more in length, but is in a remaining period of study that is shorter than a full academic year. (2021 - 2022 Student Financial Aid Bank Book, Volume 3, Chapter 5, Page 3-160, 34 CFR 685.203(a),(b),(c)) The amount of a student's Pell Grant for an academic year is based upon the payment and disbursement schedules published by the Secretary for each award year. (2021 - 2022 Student Financial Aid Handbook, Volume 3, Chapter 3, Page 3-68, 34 CFR 690.62) Condition Of the 40 students selected for eligibility testing, two students within the sample were incorrectly awarded aid based upon their specific circumstances. This was not a statistically valid sample. Cause In one instance, a student was over awarded Direct Loans. The student's remaining period of study was less than one full academic year, as they graduated at the completion of the fall semester. As such, loan proration is required. The student received a full year's worth of Direct Loans. In one instance, a student was under awarded Pell Grant funds. An updated ISIR was issued following the award packaging process. The University did not correct the Pell Grant award following this correction. Effect The University's system of internal control did not prevent or detect these instances, thus, these students were either over or under awarded Title IV aid. Questioned Costs $3,324 Identification as a Repeat Finding This is not a repeat finding. Recommendation The University should implement periodic quality control reports to allow for further accuracy checks. Views of Responsible Officials and Corrective Actions See corrective action plan.
Finding ? Eligibility - Student Financial Assistance Cluster, all CFDA #'s included on Schedule of Expenditures of Federal Awards, June 30, 2022 Award Year; U.S. Department of Education Criteria or Specific Requirement The annual maximum loan amount an undergraduate student may receive must be prorated when the borrower is enrolled in a program that is shorter than a full academic year; or enrolled in a program that is one academic year or more in length, but is in a remaining period of study that is shorter than a full academic year. (2021 - 2022 Student Financial Aid Bank Book, Volume 3, Chapter 5, Page 3-160, 34 CFR 685.203(a),(b),(c)) The amount of a student's Pell Grant for an academic year is based upon the payment and disbursement schedules published by the Secretary for each award year. (2021 - 2022 Student Financial Aid Handbook, Volume 3, Chapter 3, Page 3-68, 34 CFR 690.62) Condition Of the 40 students selected for eligibility testing, two students within the sample were incorrectly awarded aid based upon their specific circumstances. This was not a statistically valid sample. Cause In one instance, a student was over awarded Direct Loans. The student's remaining period of study was less than one full academic year, as they graduated at the completion of the fall semester. As such, loan proration is required. The student received a full year's worth of Direct Loans. In one instance, a student was under awarded Pell Grant funds. An updated ISIR was issued following the award packaging process. The University did not correct the Pell Grant award following this correction. Effect The University's system of internal control did not prevent or detect these instances, thus, these students were either over or under awarded Title IV aid. Questioned Costs $3,324 Identification as a Repeat Finding This is not a repeat finding. Recommendation The University should implement periodic quality control reports to allow for further accuracy checks. Views of Responsible Officials and Corrective Actions See corrective action plan.