FAC Explorer

Audit 4590

FY End
2023-06-30
Total Expended
$8.74M
Findings
4
Programs
12
Organization: Eastern Oklahoma State College (OK)
Year: 2023 Accepted: 2023-11-29
Auditor: Arledge & Associates PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
2710 2023-002 Significant Deficiency - E
2711 2023-003 Significant Deficiency - E
579152 2023-002 Significant Deficiency - E
579153 2023-003 Significant Deficiency - E

Programs

ALN Program Spent Major Findings
84.063 Federal Pell Grant Program $2.62M Yes 1
84.334 Gaining Early Awareness and Readiness for Undergraduate Programs $1.73M - 0
17.600 Mine Health and Safety Grants $293,024 - 0
84.042 Trio_student Support Services $284,984 - 0
84.031 Higher Education_institutional Aid $254,468 - 0
84.425 Education Stabilization Fund $204,177 - 0
93.498 Provider Relief Fund $137,461 - 0
84.007 Federal Supplemental Educational Opportunity Grants $119,879 Yes 0
84.268 Federal Direct Student Loans $80,658 Yes 0
84.033 Federal Work-Study Program $62,812 Yes 0
84.048 Career and Technical Education -- Basic Grants to States $35,094 - 0
59.037 Small Business Development Centers $5,930 - 0

Contacts

Name Title Type
GLLJSSAH1DA8 Trisha White Auditee
9184651708 Kency Duarte Auditor
No contacts on file

Notes to SEFA

Title: Note A – 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. Under the Federal Direct Student Loan Program (Direct Loan Program), the U.S. Department of Education makes loans to enable a student or parent to pay the costs of the student’s attendance at a postsecondary school. The Direct Loan Program enables an eligible student or parent to obtain a loan to pay for the student’s cost of attendance directly from the U.S. Department of Education rather than through private lenders. The College administers the origination and disbursement of the loans to eligible students or parents. The College is not responsible for the collection of these loans. De Minimis Rate Used: N Rate Explanation: The College has a Negotiated Indirect Cost Rate. Agreement issued by the U.S. Department of Human services as of January 27, 2020. The negotiated rate of 39% was applied in accordance with the Agreement for the year ended June 30, 2023, except that certain grants limited the rate charged. The accompanying schedule of expenditures of federal awards (“SEFA”) includes the federal grant activity of Eastern Oklahoma State College (the “College”), under programs of the federal government for the year ended June 30, 2023. The information in this SEFA 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 College, it is not intended to and does not present the statement of net position, changes in net position, or cash flows of the College.
Title: Note B – Summary of Significant Accounting Policies 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. Under the Federal Direct Student Loan Program (Direct Loan Program), the U.S. Department of Education makes loans to enable a student or parent to pay the costs of the student’s attendance at a postsecondary school. The Direct Loan Program enables an eligible student or parent to obtain a loan to pay for the student’s cost of attendance directly from the U.S. Department of Education rather than through private lenders. The College administers the origination and disbursement of the loans to eligible students or parents. The College is not responsible for the collection of these loans. De Minimis Rate Used: N Rate Explanation: The College has a Negotiated Indirect Cost Rate. Agreement issued by the U.S. Department of Human services as of January 27, 2020. The negotiated rate of 39% was applied in accordance with the Agreement for the year ended June 30, 2023, except that certain grants limited the rate charged. 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. Under the Federal Direct Student Loan Program (Direct Loan Program), the U.S. Department of Education makes loans to enable a student or parent to pay the costs of the student’s attendance at a postsecondary school. The Direct Loan Program enables an eligible student or parent to obtain a loan to pay for the student’s cost of attendance directly from the U.S. Department of Education rather than through private lenders. The College administers the origination and disbursement of the loans to eligible students or parents. The College is not responsible for the collection of these loans.
Title: Note C – Indirect Cost Rate 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. Under the Federal Direct Student Loan Program (Direct Loan Program), the U.S. Department of Education makes loans to enable a student or parent to pay the costs of the student’s attendance at a postsecondary school. The Direct Loan Program enables an eligible student or parent to obtain a loan to pay for the student’s cost of attendance directly from the U.S. Department of Education rather than through private lenders. The College administers the origination and disbursement of the loans to eligible students or parents. The College is not responsible for the collection of these loans. De Minimis Rate Used: N Rate Explanation: The College has a Negotiated Indirect Cost Rate. Agreement issued by the U.S. Department of Human services as of January 27, 2020. The negotiated rate of 39% was applied in accordance with the Agreement for the year ended June 30, 2023, except that certain grants limited the rate charged. The College has a Negotiated Indirect Cost Rate. Agreement issued by the U.S. Department of Human services as of January 27, 2020. The negotiated rate of 39% was applied in accordance with the Agreement for the year ended June 30, 2023, except that certain grants limited the rate charged.
Title: Note D – Subrecipients 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. Under the Federal Direct Student Loan Program (Direct Loan Program), the U.S. Department of Education makes loans to enable a student or parent to pay the costs of the student’s attendance at a postsecondary school. The Direct Loan Program enables an eligible student or parent to obtain a loan to pay for the student’s cost of attendance directly from the U.S. Department of Education rather than through private lenders. The College administers the origination and disbursement of the loans to eligible students or parents. The College is not responsible for the collection of these loans. De Minimis Rate Used: N Rate Explanation: The College has a Negotiated Indirect Cost Rate. Agreement issued by the U.S. Department of Human services as of January 27, 2020. The negotiated rate of 39% was applied in accordance with the Agreement for the year ended June 30, 2023, except that certain grants limited the rate charged. During the year ended June 30, 2023, the College did not provide federal awards to subrecipients.
Title: Note E – Subsequent Events 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. Under the Federal Direct Student Loan Program (Direct Loan Program), the U.S. Department of Education makes loans to enable a student or parent to pay the costs of the student’s attendance at a postsecondary school. The Direct Loan Program enables an eligible student or parent to obtain a loan to pay for the student’s cost of attendance directly from the U.S. Department of Education rather than through private lenders. The College administers the origination and disbursement of the loans to eligible students or parents. The College is not responsible for the collection of these loans. De Minimis Rate Used: N Rate Explanation: The College has a Negotiated Indirect Cost Rate. Agreement issued by the U.S. Department of Human services as of January 27, 2020. The negotiated rate of 39% was applied in accordance with the Agreement for the year ended June 30, 2023, except that certain grants limited the rate charged. The College has evaluated the effects of all subsequent events through October 31, 2023, the date the SEFA was available to be issued, for potential recognition or disclosure in the SEFA. The College is not aware of any subsequent events which would require recognition or disclosure in the SEFA.

Finding Details

Finding 2023-002
Criteria: Per 2 CFR Part 200 Appendix A, Section IV of the Uniform Guidance; Student Financial Assistance (SFA) Programs, the determination of need based SFA award amounts is based on financial need. Financial need is defined as the student’s cost of attendance (COA) minus the student’s expected family contribution (EFC) (as computed by the central processor and included on the student’s SAR/ISIR). Once a student is awarded any financialaid, to find remaining financial need one would use the following formula – COA minus EFC minus Estimated Financial Assistance (EFA) (§ 668.2) equals remaining need. To avoid overpayments, need-based SFA awardscannot exceed the student’s overall financial need. Condition: A student received a direct subsidized loan despite showing no financial need, as the student’s EFC was higher than the student’s COA. The student’s EFC was determined to be $24,282, whereas their COA was $20,686. Despite no financial need existing, the student was awarded a direct subsidized loan of $3,500, resulting in an over award. Cause and Effect: As a result of inadequate reviews of student’s financial need during the application process, the College awarded a direct subsidized loan to an ineligible student as no EFA existed for this individual. Recommendation: We recommend that management implements a more thorough review of individual student files before distribution of direct subsidized loans and other need based SFA awards. This review process should include a careful examination of each student’s EFC and COA to ensure that only eligible students receive needbased aid. Management Response: Management agrees this student had an incorrect type of loan awarded. Based off the students EFC number the loan should have been an unsubsidized loan and not the subsidized loan. The Financial Aid office will make the corrections of the loan type to the student’s account. Financial Aid will add an internal control process to ensure there is a second verification of student federal loans in place.
Finding 2023-003
Criteria: The Payment and Disbursement Schedules established by the U.S. Department of Education sets forth the determining amounts of Pell awards. The Payment Schedule provides the maximum scheduled award a student would receive for a full academic year as a full-time student based on their EFC and COA. The Disbursement Schedules are used to determine annual awards for full-time, three-quarter time, half-time, and less-than-half-time students. The 34 CFR 668.2(b) states, for a program that measures progress in credit hours and uses standard terms (semesters, trimesters, or quarters), 12 semester hours or 12 quarter hours per academic term as a full-time student. Condition: A qualifying student was awarded a Federal Pell Grant for the Fall semester as a full-time student. Upon review of the student’s transcript, it showed the student was enrolled in 10 credit hours, categorizing the student as a three-quarter time student, therefore, an over award of Pell occurred. Cause and Effect: When a student’s withdrawal from a course is prior to the census date in the College’s student management system, the dropped course noted per the Registrar’s office will automatically remove the credit hours for the course dropped. If, however, this occurs after the census date, a manual adjustment to the enrollment credits screen is required. Although the dropped course was appropriately reflected for financial aid, direct loans, and Title IV, it was overlooked in the student management system for Pell credits. As a result, an over awarded occurred as the student was treated as full time rather than as three quarters time for Pell. Recommendation: We recommend that management reconciles student transcripts final credit hours to the credit hours noted in the student management system to ensure awarded Pell grants are at the appropriate amount. Management Response: We concur with this finding and have reinforced with enrollment staff the internal control procedures to ensure the proper process is followed for students who withdraw or are considered no-shows. The enterprise management system for the College should adjust the credit hours for all dropped courses. Due to the student being administratively withdrawn after the last day to drop courses our system did not adjust these courses from the student financial aid aspect. We are aware of this and working toward ensuring this does not occur in the future. We will be scheduling additional training with our system in the upcoming year address this.
Finding 2023-002
Criteria: Per 2 CFR Part 200 Appendix A, Section IV of the Uniform Guidance; Student Financial Assistance (SFA) Programs, the determination of need based SFA award amounts is based on financial need. Financial need is defined as the student’s cost of attendance (COA) minus the student’s expected family contribution (EFC) (as computed by the central processor and included on the student’s SAR/ISIR). Once a student is awarded any financialaid, to find remaining financial need one would use the following formula – COA minus EFC minus Estimated Financial Assistance (EFA) (§ 668.2) equals remaining need. To avoid overpayments, need-based SFA awardscannot exceed the student’s overall financial need. Condition: A student received a direct subsidized loan despite showing no financial need, as the student’s EFC was higher than the student’s COA. The student’s EFC was determined to be $24,282, whereas their COA was $20,686. Despite no financial need existing, the student was awarded a direct subsidized loan of $3,500, resulting in an over award. Cause and Effect: As a result of inadequate reviews of student’s financial need during the application process, the College awarded a direct subsidized loan to an ineligible student as no EFA existed for this individual. Recommendation: We recommend that management implements a more thorough review of individual student files before distribution of direct subsidized loans and other need based SFA awards. This review process should include a careful examination of each student’s EFC and COA to ensure that only eligible students receive needbased aid. Management Response: Management agrees this student had an incorrect type of loan awarded. Based off the students EFC number the loan should have been an unsubsidized loan and not the subsidized loan. The Financial Aid office will make the corrections of the loan type to the student’s account. Financial Aid will add an internal control process to ensure there is a second verification of student federal loans in place.
Finding 2023-003
Criteria: The Payment and Disbursement Schedules established by the U.S. Department of Education sets forth the determining amounts of Pell awards. The Payment Schedule provides the maximum scheduled award a student would receive for a full academic year as a full-time student based on their EFC and COA. The Disbursement Schedules are used to determine annual awards for full-time, three-quarter time, half-time, and less-than-half-time students. The 34 CFR 668.2(b) states, for a program that measures progress in credit hours and uses standard terms (semesters, trimesters, or quarters), 12 semester hours or 12 quarter hours per academic term as a full-time student. Condition: A qualifying student was awarded a Federal Pell Grant for the Fall semester as a full-time student. Upon review of the student’s transcript, it showed the student was enrolled in 10 credit hours, categorizing the student as a three-quarter time student, therefore, an over award of Pell occurred. Cause and Effect: When a student’s withdrawal from a course is prior to the census date in the College’s student management system, the dropped course noted per the Registrar’s office will automatically remove the credit hours for the course dropped. If, however, this occurs after the census date, a manual adjustment to the enrollment credits screen is required. Although the dropped course was appropriately reflected for financial aid, direct loans, and Title IV, it was overlooked in the student management system for Pell credits. As a result, an over awarded occurred as the student was treated as full time rather than as three quarters time for Pell. Recommendation: We recommend that management reconciles student transcripts final credit hours to the credit hours noted in the student management system to ensure awarded Pell grants are at the appropriate amount. Management Response: We concur with this finding and have reinforced with enrollment staff the internal control procedures to ensure the proper process is followed for students who withdraw or are considered no-shows. The enterprise management system for the College should adjust the credit hours for all dropped courses. Due to the student being administratively withdrawn after the last day to drop courses our system did not adjust these courses from the student financial aid aspect. We are aware of this and working toward ensuring this does not occur in the future. We will be scheduling additional training with our system in the upcoming year address this.