FAC Explorer

Audit 56687

FY End
2022-08-31
Total Expended
$6.06M
Findings
2
Programs
6
Organization: East-West University (IL)
Year: 2022 Accepted: 2023-03-14
Auditor: Sikich LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
61450 2022-002 - - E
637892 2022-002 - - E

Programs

ALN Program Spent Major Findings
84.063 Federal Pell Grant Program $1.86M Yes 1
84.268 Federal Direct Student Loans $1.77M Yes 0
84.425 Covid-19 Education Stabilization Fund $1.55M Yes 0
84.268 Federal Direct Student Loans- Plus Loans $365,993 Yes 0
84.007 Federal Supplemental Educational Opportunity Grants $78,665 Yes 0
84.033 Federal Work-Study Programs $31,631 Yes 0

Contacts

Name Title Type
DRLXSNVEH6M7 Dr. Madhu Jain Auditee
3129390111 Ray Krouse Auditor
No contacts on file

Notes to SEFA

Title: VALUE OF NONCASH ASSISTANCE Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the East-West University (the University) under programs of the federal government for the year ended August 31, 2022. The information in this Schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedulepresents 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. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. There was no noncash assistance expended during the year ended August 31, 2022.
Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the East-West University (the University) under programs of the federal government for the year ended August 31, 2022. The information in this Schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedulepresents 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. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the UniformGuidance wherein certain types of expenditures are not allowable or are limited as toreimbursement.
Title: INSURANCE, LOANS, OR LOAN GUARANTEES Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the East-West University (the University) under programs of the federal government for the year ended August 31, 2022. The information in this Schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedulepresents 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. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. Other than Federal Direct Student Loans included on the Schedule, there were no otherinsurance, loans, or loan guarantees outstanding as of and for the year ended August 31,2022.
Title: SUBRECIPIENTS Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the East-West University (the University) under programs of the federal government for the year ended August 31, 2022. The information in this Schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedulepresents 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. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. There were no amounts provided to subrecipients from any federal program during the yearended August 31, 2022.

Finding Details

Finding 2022-002
2022-002: Incorrect Pell Disbursement - Student Financial Aid Cluster Assistance Listing Number 84.007, 84.033, 84.063, 84.268, Grant Period - Year Ended August 31, 2022 Criteria: According to 34 CFR 690.63 students may qualify for a maximum Pell Grant award of $6,495 for an award year. The maximum amount is awarded to students with a zero Expected Family Contribution (EFC) and full-time enrollment status. Students with less than full-time enrollment or more than a zero EFC are eligible for a reduced Pell award. Condition: During our student file testing we noted two students out of forty were not disbursed the correct Pell Grant. For the students the wrong Pell chart was used resulting in an under award of $150 for each student. We consider these errors to be instance of noncompliance relating to the Eligibility Compliance Requirement. See Schedule of Findings and Questioned Costs for chart/table. Statistical sampling was not used when making sample selections. Questioned Costs: $0 Effect: Two students received an incorrect amount of Pell award and were under awarded an amount of $150 each. Cause: The University?s internal controls did not identify that the incorrect amount of Pell grant was awarded to the student. According to the Department of Education?s Pell matrix chart, the students were under awarded Pell in the amount of $150 each. Recommendation: We recommend the University closely monitor all student?s enrollment status to ensure all students receiving financial aid are disbursed the correct amount. Views of Responsible Officials: Management agrees with the Single Audit finding and a response is included in the Corrective Action Plan.
Finding 2022-002
2022-002: Incorrect Pell Disbursement - Student Financial Aid Cluster Assistance Listing Number 84.007, 84.033, 84.063, 84.268, Grant Period - Year Ended August 31, 2022 Criteria: According to 34 CFR 690.63 students may qualify for a maximum Pell Grant award of $6,495 for an award year. The maximum amount is awarded to students with a zero Expected Family Contribution (EFC) and full-time enrollment status. Students with less than full-time enrollment or more than a zero EFC are eligible for a reduced Pell award. Condition: During our student file testing we noted two students out of forty were not disbursed the correct Pell Grant. For the students the wrong Pell chart was used resulting in an under award of $150 for each student. We consider these errors to be instance of noncompliance relating to the Eligibility Compliance Requirement. See Schedule of Findings and Questioned Costs for chart/table. Statistical sampling was not used when making sample selections. Questioned Costs: $0 Effect: Two students received an incorrect amount of Pell award and were under awarded an amount of $150 each. Cause: The University?s internal controls did not identify that the incorrect amount of Pell grant was awarded to the student. According to the Department of Education?s Pell matrix chart, the students were under awarded Pell in the amount of $150 each. Recommendation: We recommend the University closely monitor all student?s enrollment status to ensure all students receiving financial aid are disbursed the correct amount. Views of Responsible Officials: Management agrees with the Single Audit finding and a response is included in the Corrective Action Plan.