FAC Explorer

Audit 5956

FY End
2023-06-30
Total Expended
$8.32M
Findings
4
Programs
6
Organization: Oklahoma Wesleyan University (OK)
Year: 2023 Accepted: 2023-12-08
Auditor: Keller & Owens LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
3770 2023-001 - - E
3771 2023-001 - - E
580212 2023-001 - - E
580213 2023-001 - - E

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $6.42M Yes 1
84.063 Federal Pell Grant Program $1.44M Yes 0
84.033 Federal Work-Study Program $138,030 Yes 1
84.038 Federal Perkins Loan $113,600 Yes 0
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $108,916 Yes 0
84.007 Federal Supplemental Educational Opportunity Grants $90,235 Yes 0

Contacts

Name Title Type
JJMWYHKXKRJ6 Kirk Jackson Auditee
9183356836 Robert Simmons Auditor
No contacts on file

Notes to SEFA

Title: FEDERAL DIRECT STUDENT LOANS Accounting Policies: The schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Oklahoma Wesleyan University (the “University”) under programs of the federal government for the year ended June 30, 2023. The information in this Schedule is presented in accordance with the requirements 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 assets, or cash flows of the University. The University includes loans granted under the Federal Direct Student Loans Program as expenditures of federal awards. Federal Direct Student Loan Program balances are not included in the financial statements of the University. 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 limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. If the University is required to match certain federal assistance, as defined by grant agreements, no such matching has been included as expenditures in the Schedule. De Minimis Rate Used: N Rate Explanation: The University used the Department of Education formula's to determine the administrative cost allowance. During the fiscal year ended June 30, 2023, 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): See Notes to the SEFA for the chart/table.
Title: FEDERAL PELL GRANT Accounting Policies: The schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Oklahoma Wesleyan University (the “University”) under programs of the federal government for the year ended June 30, 2023. The information in this Schedule is presented in accordance with the requirements 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 assets, or cash flows of the University. The University includes loans granted under the Federal Direct Student Loans Program as expenditures of federal awards. Federal Direct Student Loan Program balances are not included in the financial statements of the University. 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 limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. If the University is required to match certain federal assistance, as defined by grant agreements, no such matching has been included as expenditures in the Schedule. De Minimis Rate Used: N Rate Explanation: The University used the Department of Education formula's to determine the administrative cost allowance. Included in the Federal PELL Grant expenditures is an administrative cost allowance of $1,605.
Title: FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANT Accounting Policies: The schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Oklahoma Wesleyan University (the “University”) under programs of the federal government for the year ended June 30, 2023. The information in this Schedule is presented in accordance with the requirements 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 assets, or cash flows of the University. The University includes loans granted under the Federal Direct Student Loans Program as expenditures of federal awards. Federal Direct Student Loan Program balances are not included in the financial statements of the University. 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 limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. If the University is required to match certain federal assistance, as defined by grant agreements, no such matching has been included as expenditures in the Schedule. De Minimis Rate Used: N Rate Explanation: The University used the Department of Education formula's to determine the administrative cost allowance. The following is included as Federal Supplemental Educational Opportunity Grant (FSEOG) expenditures: See Notes to the SEFA for the chart/table.
Title: FEDERAL WORK STUDY Accounting Policies: The schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Oklahoma Wesleyan University (the “University”) under programs of the federal government for the year ended June 30, 2023. The information in this Schedule is presented in accordance with the requirements 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 assets, or cash flows of the University. The University includes loans granted under the Federal Direct Student Loans Program as expenditures of federal awards. Federal Direct Student Loan Program balances are not included in the financial statements of the University. 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 limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. If the University is required to match certain federal assistance, as defined by grant agreements, no such matching has been included as expenditures in the Schedule. De Minimis Rate Used: N Rate Explanation: The University used the Department of Education formula's to determine the administrative cost allowance. The following is included as Federal Work Study (FWS) expenditures: See Notes to the SEFA for the chart/table.
Title: FEDERAL PERKINS LOAN Accounting Policies: The schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Oklahoma Wesleyan University (the “University”) under programs of the federal government for the year ended June 30, 2023. The information in this Schedule is presented in accordance with the requirements 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 assets, or cash flows of the University. The University includes loans granted under the Federal Direct Student Loans Program as expenditures of federal awards. Federal Direct Student Loan Program balances are not included in the financial statements of the University. 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 limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. If the University is required to match certain federal assistance, as defined by grant agreements, no such matching has been included as expenditures in the Schedule. De Minimis Rate Used: N Rate Explanation: The University used the Department of Education formula's to determine the administrative cost allowance. 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 doubtful accounts, was $106,856 at June 30, 2023. 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

Finding 2023-001
Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Direct Student Loan Program and Federal Work Study Program ALN and Program Expenditures: 84.268 ($6,424,016) and 84.033 ($ 138,030) Award Number: P268K232030 and P033A223400 Federal Award Year: July 1, 2022 to June 30, 2023 Questioned Costs: $1,145 (ALN 84.033) Condition Found: Need-based Title IV financial aid exceeded students’ eligibility for four of the sixty students in our sample. Criteria: Need-based Title IV financial aid is limited to a student’s cost of attendance less their expected family contribution and other Non-title IV financial aid received. Cause: Need-based Title IV financial aid was not limited to the calculation listed in the criteria section. Possible Asserted Effect: The effect for each student was as follows: The first student received $2,000 of subsidized federal direct loans that the student was ineligible to receive. The second student received $382 of subsidized federal direct loans that the student was ineligible to receive. The third student received $1,649 of subsidized federal direct loans that the student was ineligible to receive. The fourth student received $1,145 of federal work study that the student was ineligible to receive. 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 recommendation for each student is as follows: For the first student, $2,000 of subsidized federal direct loans should be reallocated to unsubsidized federal direct loans. For the second student, $382 of subsidized federal direct loans should be reallocated to unsubsidized federal direct loans. For the third student, $1,649 of subsidized federal direct loans should be reallocated to unsubsidized federal direct loans. For the fourth student, $1,145 of federal work study funds should be returned to the Department of Education. The funds should be replaced with institutional funds. Management Response: The Financial Aid Director recalculated the “need” for each student in question. The Financial Aid Director agreed with the auditor’s calculations. The following corrections were made on August 8, 2023: For the first student, $2,000 of subsidized federal direct loans were reallocated to unsubsidized federal direct loans. For the second student, $382 of subsidized federal direct loans were reallocated to unsubsidized federal direct loans. For the third student, $1,649 of subsidized federal direct loans were reallocated to unsubsidized federal direct loans. For the fourth student, $1,145 of federal work study funds were returned to the Department of Education. The student had already worked for the University and earned the funds in question. He was treated as a regular employee of the University and paid with institutional funds instead of federal work study funds.
Finding 2023-001
Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Direct Student Loan Program and Federal Work Study Program ALN and Program Expenditures: 84.268 ($6,424,016) and 84.033 ($ 138,030) Award Number: P268K232030 and P033A223400 Federal Award Year: July 1, 2022 to June 30, 2023 Questioned Costs: $1,145 (ALN 84.033) Condition Found: Need-based Title IV financial aid exceeded students’ eligibility for four of the sixty students in our sample. Criteria: Need-based Title IV financial aid is limited to a student’s cost of attendance less their expected family contribution and other Non-title IV financial aid received. Cause: Need-based Title IV financial aid was not limited to the calculation listed in the criteria section. Possible Asserted Effect: The effect for each student was as follows: The first student received $2,000 of subsidized federal direct loans that the student was ineligible to receive. The second student received $382 of subsidized federal direct loans that the student was ineligible to receive. The third student received $1,649 of subsidized federal direct loans that the student was ineligible to receive. The fourth student received $1,145 of federal work study that the student was ineligible to receive. 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 recommendation for each student is as follows: For the first student, $2,000 of subsidized federal direct loans should be reallocated to unsubsidized federal direct loans. For the second student, $382 of subsidized federal direct loans should be reallocated to unsubsidized federal direct loans. For the third student, $1,649 of subsidized federal direct loans should be reallocated to unsubsidized federal direct loans. For the fourth student, $1,145 of federal work study funds should be returned to the Department of Education. The funds should be replaced with institutional funds. Management Response: The Financial Aid Director recalculated the “need” for each student in question. The Financial Aid Director agreed with the auditor’s calculations. The following corrections were made on August 8, 2023: For the first student, $2,000 of subsidized federal direct loans were reallocated to unsubsidized federal direct loans. For the second student, $382 of subsidized federal direct loans were reallocated to unsubsidized federal direct loans. For the third student, $1,649 of subsidized federal direct loans were reallocated to unsubsidized federal direct loans. For the fourth student, $1,145 of federal work study funds were returned to the Department of Education. The student had already worked for the University and earned the funds in question. He was treated as a regular employee of the University and paid with institutional funds instead of federal work study funds.
Finding 2023-001
Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Direct Student Loan Program and Federal Work Study Program ALN and Program Expenditures: 84.268 ($6,424,016) and 84.033 ($ 138,030) Award Number: P268K232030 and P033A223400 Federal Award Year: July 1, 2022 to June 30, 2023 Questioned Costs: $1,145 (ALN 84.033) Condition Found: Need-based Title IV financial aid exceeded students’ eligibility for four of the sixty students in our sample. Criteria: Need-based Title IV financial aid is limited to a student’s cost of attendance less their expected family contribution and other Non-title IV financial aid received. Cause: Need-based Title IV financial aid was not limited to the calculation listed in the criteria section. Possible Asserted Effect: The effect for each student was as follows: The first student received $2,000 of subsidized federal direct loans that the student was ineligible to receive. The second student received $382 of subsidized federal direct loans that the student was ineligible to receive. The third student received $1,649 of subsidized federal direct loans that the student was ineligible to receive. The fourth student received $1,145 of federal work study that the student was ineligible to receive. 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 recommendation for each student is as follows: For the first student, $2,000 of subsidized federal direct loans should be reallocated to unsubsidized federal direct loans. For the second student, $382 of subsidized federal direct loans should be reallocated to unsubsidized federal direct loans. For the third student, $1,649 of subsidized federal direct loans should be reallocated to unsubsidized federal direct loans. For the fourth student, $1,145 of federal work study funds should be returned to the Department of Education. The funds should be replaced with institutional funds. Management Response: The Financial Aid Director recalculated the “need” for each student in question. The Financial Aid Director agreed with the auditor’s calculations. The following corrections were made on August 8, 2023: For the first student, $2,000 of subsidized federal direct loans were reallocated to unsubsidized federal direct loans. For the second student, $382 of subsidized federal direct loans were reallocated to unsubsidized federal direct loans. For the third student, $1,649 of subsidized federal direct loans were reallocated to unsubsidized federal direct loans. For the fourth student, $1,145 of federal work study funds were returned to the Department of Education. The student had already worked for the University and earned the funds in question. He was treated as a regular employee of the University and paid with institutional funds instead of federal work study funds.
Finding 2023-001
Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Direct Student Loan Program and Federal Work Study Program ALN and Program Expenditures: 84.268 ($6,424,016) and 84.033 ($ 138,030) Award Number: P268K232030 and P033A223400 Federal Award Year: July 1, 2022 to June 30, 2023 Questioned Costs: $1,145 (ALN 84.033) Condition Found: Need-based Title IV financial aid exceeded students’ eligibility for four of the sixty students in our sample. Criteria: Need-based Title IV financial aid is limited to a student’s cost of attendance less their expected family contribution and other Non-title IV financial aid received. Cause: Need-based Title IV financial aid was not limited to the calculation listed in the criteria section. Possible Asserted Effect: The effect for each student was as follows: The first student received $2,000 of subsidized federal direct loans that the student was ineligible to receive. The second student received $382 of subsidized federal direct loans that the student was ineligible to receive. The third student received $1,649 of subsidized federal direct loans that the student was ineligible to receive. The fourth student received $1,145 of federal work study that the student was ineligible to receive. 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 recommendation for each student is as follows: For the first student, $2,000 of subsidized federal direct loans should be reallocated to unsubsidized federal direct loans. For the second student, $382 of subsidized federal direct loans should be reallocated to unsubsidized federal direct loans. For the third student, $1,649 of subsidized federal direct loans should be reallocated to unsubsidized federal direct loans. For the fourth student, $1,145 of federal work study funds should be returned to the Department of Education. The funds should be replaced with institutional funds. Management Response: The Financial Aid Director recalculated the “need” for each student in question. The Financial Aid Director agreed with the auditor’s calculations. The following corrections were made on August 8, 2023: For the first student, $2,000 of subsidized federal direct loans were reallocated to unsubsidized federal direct loans. For the second student, $382 of subsidized federal direct loans were reallocated to unsubsidized federal direct loans. For the third student, $1,649 of subsidized federal direct loans were reallocated to unsubsidized federal direct loans. For the fourth student, $1,145 of federal work study funds were returned to the Department of Education. The student had already worked for the University and earned the funds in question. He was treated as a regular employee of the University and paid with institutional funds instead of federal work study funds.