Finding 1082010 (2024-002)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2024-11-13
Audit: 328266
Organization: Southwest Baptist University (MO)

AI Summary

  • Core Issue: The University failed to retain necessary documentation for the FISAP, leading to unsupported reported information.
  • Impacted Requirements: Compliance with annual reporting requirements for federal financial assistance programs.
  • Recommended Follow-Up: Implement a policy to ensure all supporting documentation is retained and accessible for future audits.

Finding Text

Federal Agency Program – U.S. Department of Education, Student Financial Assistance Cluster, Federal Pell Grant Program, Assistance Listing Number 84.063; Federal Direct Loan Program, Assistance Listing Number 84.268 Program Year - June 1, 2023 – May 31, 2024 Criteria or Specific Requirement – Reporting - ED Form 646-1, Fiscal Operations Report and Application to Participate (FISAP) is submitted annually to receive funds for the campus-based programs. The institution uses Fiscal Operations Report portion to report its expenditures in the previous award year and the Application to Participate portion to apply for the following year. Condition – During our testing, we noted supporting documentation for one section of the FISAP was not retained by the institution. Questioned Costs – $0 Context – During our testing, it was noted that the University could not provide us with supporting documentation to support the reported information in Part III. Federal Perkins Loan Program for Award Year July 1, 2022 through June 30, 2023. Of a sample of six parts to the FISAP one section was not supported by required documentation. Cause – The University did not retain appropriate supporting documentation. Effect – The University reported incorrect information on the 2022-2023 FISAP. Identification as a Repeat Finding – N/A Recommendation – We recommend that the University has a policy in place to retain supporting documentation to provide evidence of the appropriateness of information reported annually on the FISAP. Views of Responsible Officials and Planned Corrective Actions - Due to turnover in the Controller position, the calculations for the FISAP cash balances was not retained in a shared drive for future reference and audit review. This practice is against University policy and resulted in the inability of current staff to produce the documentation for audit review. To address these issues, SBU employees have taken the following corrective measures: 1. The current Controller will adhere to University policy and save documentation in a shared drive for future review and reference.

Categories

Student Financial Aid Reporting Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 505568 2024-002
    Significant Deficiency
  • 505569 2024-002
    Significant Deficiency
  • 505570 2024-003
    Significant Deficiency Repeat
  • 505571 2024-003
    Significant Deficiency Repeat
  • 1082011 2024-002
    Significant Deficiency
  • 1082012 2024-003
    Significant Deficiency Repeat
  • 1082013 2024-003
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $13.84M
84.063 Federal Pell Grant Program $2.95M
84.038 Federal Perkins Loan Program $1.16M
93.364 Nursing Student Loans $768,989
93.264 Nurse Faculty Loan Program (nflp) $449,973
84.033 Federal Work-Study Program $254,811
84.007 Federal Supplemental Educational Opportunity Grants $164,998