Finding 1169348 (2025-006)

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: Two students were incorrectly flagged for aggregate loan limits, leading to underawards of federal aid.
  • Impacted Requirements: Non-compliance with 34 CFR 685.203(d) regarding proper resolution of ISIR flags.
  • Recommended Follow-Up: Review and improve the system for flagging and resolving aggregate limits to prevent future errors.

Finding Text

Incorrect Resolution of ISIR Aggregate Limits Flag Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268 and 84.063 Federal Award Identification #: 2024-2025 Financial Aid Year Condition: 2 out of 61 students had incorrect resolutions to the ISIR flag for aggregate loan limits. Criteria: 34 CFR 685.203(d) Questioned Costs: $0 Context: Out of 61 students tested for ISIR flags, 2 were underawarded Pell and loans based on the remaining eligibility. This resulted in an underaward of Pell of $184 which was corrected during the audit. There was also an under award of $553 of subsidized loans and $1,333 of unsubsidized loans that could not be originated due to being past the loan period. Cause: For one student, the initial ISIR received had the aggregate limits flag and was resolved. The second ISIR received did not resolve the flags, and no aid was disbursed. For the second student, there was an incorrect proration of loans for graduation as well as an incorrect resolution of the remaining unsubsidized eligibility. Effect: Students were not resolved correctly, resulting in loss of federal aid. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend the University review the way the system is flagging aggregate limits and resolutions. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Corrective Action Plan

Incorrect Resolution of ISIR Aggregate Limits Flag Planned Corrective Action: All financial aid staff received a copy of the FAFSA Specifications Guide, Volume 7 – Comment Codes applicable to the current academic year, and are required to reference this guide for each student file they review to ensure that all comment codes requiring resolution are properly addressed. Additionally, the Assistant Director of Financial Aid distributes daily ISIR import reports to all financial aid staff. Any ISIRs requiring resolution are identified within these reports as well as within the corresponding student files in our system. 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, and Assistant Director of Financial Aid, Alyssa Shealor Anticipated Date of Completion: June 30, 2026

Categories

Eligibility 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
  • 1169342 2025-004
    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
  • 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