Finding 1169342 (2025-004)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2025
Accepted
2026-01-16
Audit: 382279
Organization: Wayland Baptist University (TX)
Auditor: CAPINCROUSE LLC

AI Summary

  • Core Issue: Four students were under awarded subsidized loans due to a need analysis error.
  • Impacted Requirements: Compliance with 34 CFR 685.203 regarding proper awarding of federal aid.
  • Recommended Follow-Up: Implement regular reports in the student information system to monitor federal aid awards.

Finding Text

Need Analysis Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268 Federal Award Identification #: 2024-2025 Financial Aid Year Condition: Students were not initially appropriately awarded subsidized aid based on need. Criteria: 34 CFR 685.203 Questioned Costs: $0 Context: 4 students out of 61 were under awarded subsidized loans based on need analysis and year of enrollment. These students were corrected during the audit process by reallocating unsubsidized loans to subsidized loans for a total of $5,010 reallocated. One of these four students was also under awarded unsubsidized loans. Due to the loan period, the University could not originate the loan to correct the student. Cause: There is a manual review process that did not catch these students. Effect: Students did not receive subsidized federal aid for which they were eligible. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend the University set up reports in the student information system to periodically check for over or under awarding of need based federal aid. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Corrective Action Plan

Need Analysis Planned Corrective Action: The Assistant Director of Compliance & Reporting developed reports to help identify any students who were not properly offered the subsidized loan which was reviewed before the start of the first term of the current academic year. In addition, the reports will be reviewed periodically throughout the aid year to identify enrollment or academic record changes that may affect loan eligibility. When discrepancies are identified, loan offers will be adjusted promptly to ensure compliance with federal loan limits. These corrective actions strengthen oversight, improve accuracy in loan awarding, and enhance internal controls to prevent recurrence of this issue. To address the system limitations identified, the University has acquired a new Software-as-a-Service (SaaS) financial aid management system. Person Responsible for Corrective Action Plan: Executive Director of Financial Aid, Robert Hamilton, and Assistant Director of Compliance & Reporting, Brooke Tyler Anticipated Date of Completion: June 30, 2026

Categories

Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 1169339 2025-001
    Material Weakness Repeat
  • 1169340 2025-002
    Material Weakness Repeat
  • 1169341 2025-003
    Material Weakness Repeat
  • 1169343 2025-006
    Material Weakness Repeat
  • 1169344 2025-001
    Material Weakness Repeat
  • 1169345 2025-002
    Material Weakness Repeat
  • 1169346 2025-003
    Material Weakness Repeat
  • 1169347 2025-005
    Material Weakness Repeat
  • 1169348 2025-006
    Material Weakness Repeat
  • 1169349 2025-001
    Material Weakness Repeat
  • 1169350 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $15.52M
84.063 FEDERAL PELL GRANT PROGRAM $7.03M
84.031 HIGHER EDUCATION INSTITUTIONAL AID $639,577
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $222,842
84.116 FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDUCATION $189,776
84.033 FEDERAL WORK-STUDY PROGRAM $171,842
47.076 STEM EDUCATION (FORMERLY EDUCATION AND HUMAN RESOURCES) $138,122
84.021 OVERSEAS PROGRAMS - GROUP PROJECTS ABROAD $58,948
16.525 GRANTS TO REDUCE DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, AND STALKING ON CAMPUS $57,851