FAC Explorer

Audit 959

FY End
2023-05-31
Total Expended
$7.68M
Findings
4
Programs
5
Organization: Howard Payne University (TX)
Year: 2023 Accepted: 2023-10-23
Auditor: Capincrouse LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
436 2023-001 - Yes N
437 2023-002 - - E
576878 2023-001 - Yes N
576879 2023-002 - - E

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $5.62M Yes 1
84.063 Federal Pell Grant Program $1.59M Yes 1
84.007 Federal Supplemental Educational Opportunity Grants $195,651 Yes 0
84.038 Federal Perkins Loan Program $140,447 Yes 0
84.033 Federal Work-Study Program $133,072 Yes 0

Contacts

Name Title Type
F4KEMCA9Y4P3 Karen Laquey Auditee
3256498805 Dan Campbell, CPA Auditor
No contacts on file

Notes to SEFA

Title: RELATIONSHIP TO FINANCIAL STATEMENTS Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Howard Payne University (University) under programs of the federal government for the year ending May 31, 2023. The information in the schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Expenditures in 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. 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 the grant agreements, no such matching has been included as expenditures in the schedule. De Minimis Rate Used: N Rate Explanation: N/A See the Notes to the SEFA for chart/table
Title: SUBRECIPIENTS, NON-CASH ASSISTANCE, FEDERAL INSURANCE, LOANS, AND LOAN GUARANTEES Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Howard Payne University (University) under programs of the federal government for the year ending May 31, 2023. The information in the schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Expenditures in 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. 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 the grant agreements, no such matching has been included as expenditures in the schedule. De Minimis Rate Used: N Rate Explanation: N/A The University did not provide any federal funds to subrecipients nor did they receive any federal non-cash assistance, insurance, loans, or loan guarantees.
Title: FEDERAL PERKINS LOAN PROGRAM Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Howard Payne University (University) under programs of the federal government for the year ending May 31, 2023. The information in the schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Expenditures in 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. 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 the grant agreements, no such matching has been included as expenditures in the schedule. De Minimis Rate Used: N Rate Explanation: N/A See the Notes to the SEFA for chart/table

Finding Details

Finding 2023-001
Enrollment Reporting to NSLDS DEPARTMENT OF EDUCATION ALN #: 84.268 Federal Award Identification #: 2022-2023 Award Year Condition: The NSLDS enrollment status effective date for withdrawals was not accurately sent to NSLDS from the system. Criteria: 34 CFR 685.309 Questioned Costs: $-0- Context: Out of 63 students tested, 2 students had incorrect effective dates reported for their enrollment status. Both of these students were withdrawal students. These students were corrected during the audit. Cause: The last date of attendance was not correctly being pulled out of the system for NSLDS enrollment reporting. Effect: Inaccurate reporting can impact a student’s loan grace period in school deferment eligibility, beginning loan repayments, appropriate interest charges, etc. Identification as repeat finding, if applicable: Yes, 2022-002 Recommendation: We recommend the University continue to work with the registrar and National Student Clearinghouse to accurately report enrollment. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2023-002
Incorrect Summer Pell Calculations DEPARTMENT OF EDUCATION ALN #: 84.063 Federal Award Identification #: 2022-2023 Award Year Condition: 2 students out of 39 were not properly awarded summer Pell based on enrollment status. Criteria: 34 CFR 690.63(b) Questioned Costs: $-0- Context: One student was eligible for $862 of summer Pell, but was awarded through Powerfaids $619. One student was eligible for $1,724 but awarded $619. The University is investigating why the Pell charts pulled these amounts, and has escalated the case with the software vendor. The University is in the process of correcting these two students. Cause: The calculations pulled from the government charts did not accurately award Pell based on enrollment status, expected family contribution, and cost of attendance. Effect: Pell was not awarded correctly based on enrollment status. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend seeking resolution with Powerfaids to ensure proper awarding going forward. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2023-001
Enrollment Reporting to NSLDS DEPARTMENT OF EDUCATION ALN #: 84.268 Federal Award Identification #: 2022-2023 Award Year Condition: The NSLDS enrollment status effective date for withdrawals was not accurately sent to NSLDS from the system. Criteria: 34 CFR 685.309 Questioned Costs: $-0- Context: Out of 63 students tested, 2 students had incorrect effective dates reported for their enrollment status. Both of these students were withdrawal students. These students were corrected during the audit. Cause: The last date of attendance was not correctly being pulled out of the system for NSLDS enrollment reporting. Effect: Inaccurate reporting can impact a student’s loan grace period in school deferment eligibility, beginning loan repayments, appropriate interest charges, etc. Identification as repeat finding, if applicable: Yes, 2022-002 Recommendation: We recommend the University continue to work with the registrar and National Student Clearinghouse to accurately report enrollment. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2023-002
Incorrect Summer Pell Calculations DEPARTMENT OF EDUCATION ALN #: 84.063 Federal Award Identification #: 2022-2023 Award Year Condition: 2 students out of 39 were not properly awarded summer Pell based on enrollment status. Criteria: 34 CFR 690.63(b) Questioned Costs: $-0- Context: One student was eligible for $862 of summer Pell, but was awarded through Powerfaids $619. One student was eligible for $1,724 but awarded $619. The University is investigating why the Pell charts pulled these amounts, and has escalated the case with the software vendor. The University is in the process of correcting these two students. Cause: The calculations pulled from the government charts did not accurately award Pell based on enrollment status, expected family contribution, and cost of attendance. Effect: Pell was not awarded correctly based on enrollment status. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend seeking resolution with Powerfaids to ensure proper awarding going forward. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.