Finding 2229 (2023-005)

Significant Deficiency Repeat Finding
Requirement
E
Questioned Costs
$1
Year
2023
Accepted
2023-11-20
Audit: 3804
Organization: Wayland Baptist University (TX)
Auditor: Capincrouse LLP

AI Summary

  • Core Issue: Four students received incorrect Pell awards due to enrollment status errors, leading to both overawards and underawards.
  • Impacted Requirements: Compliance with 34 CFR 690.63(b) regarding proper Pell calculations.
  • Recommended Follow-Up: Implement a verification process to ensure Pell awards align with actual enrollment status.

Finding Text

Incorrect Pell Calculations Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.063 Federal Award Identification #: 2022-2023 Financial Aid Year Condition: 4 students out of 60 were not properly awarded Pell based on enrollment status. Criteria: 34 CFR 690.63(b) Questioned Costs: $2,280 Context: Two students were inadvertently awarded and paid Pell for more classes than they attended, resulting is $2,280 overawards. This was not corrected during the audit. One student was not paid Pell for all classes attended, resulting in an underaward of $381. One student was paid the fall 2022 Pell award but was not paid for spring and summer. This student was corrected during the audit process. Cause: There was not an internal report run to verify that all changes in attendance resulted in the students being paid Pell for the classes in which they began attendance. Effect: Pell was not awarded correctly based on enrollment status, resulting in overawards to some students and underawards to other students. Identification as repeat finding, if applicable: Yes, 2022-005. Recommendation: We recommend a process be used to adjust Pell to be paid in alignment with enrollment status. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Corrective Action Plan

Incorrect Pell Calculations Planned Corrective Action: PowerFAIDS set-up has been adjusted to accommodate individual Period of Enrollment processing for the 2023-24 academic year. Related procedures have also been updated. These adjustments should reduce the amount of manual calculation of Pell eligibility needed for modular enrollment, which will reduce the chance of similar over and under awarding in the future by reducing the risk of human error. Executive Director has provided in-house training to all advising staff to ensure proper understanding of calculating Pell. In June 2023, WBU hired a full-time staff member to serve as a Financial Aid Compliance Specialist in the Office of Financial Aid and this position is devoted to internal audit and federal/state regulation compliance. Person Responsible for Corrective Action Plan: Christy Miller, Executive Director of Financial Aid Anticipated Date of Completion: October 31, 2023

Categories

Questioned Costs Significant Deficiency

Other Findings in this Audit

  • 2219 2023-002
    Material Weakness Repeat
  • 2220 2023-002
    Material Weakness Repeat
  • 2221 2023-003
    Material Weakness Repeat
  • 2222 2023-003
    Material Weakness Repeat
  • 2223 2023-004
    Significant Deficiency
  • 2224 2023-004
    Significant Deficiency
  • 2225 2023-004
    Significant Deficiency
  • 2226 2023-004
    Significant Deficiency
  • 2227 2023-004
    Significant Deficiency
  • 2228 2023-004
    Significant Deficiency
  • 2230 2023-006
    - Repeat
  • 578661 2023-002
    Material Weakness Repeat
  • 578662 2023-002
    Material Weakness Repeat
  • 578663 2023-003
    Material Weakness Repeat
  • 578664 2023-003
    Material Weakness Repeat
  • 578665 2023-004
    Significant Deficiency
  • 578666 2023-004
    Significant Deficiency
  • 578667 2023-004
    Significant Deficiency
  • 578668 2023-004
    Significant Deficiency
  • 578669 2023-004
    Significant Deficiency
  • 578670 2023-004
    Significant Deficiency
  • 578671 2023-005
    Significant Deficiency Repeat
  • 578672 2023-006
    - Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $14.56M
84.063 Federal Pell Grant Program $4.75M
84.425 Covid-19 Education Stabilization Fund Heerf-Minority Serving Institutions $545,865
84.007 Federal Supplemental Educational Opportunity Grants $281,477
84.031 Higher Education_institutional Aid $188,222
84.033 Federal Work-Study Program $170,000
84.425 Covid-19 Education Stabilization Fund-Supplemental Assistance to Institutions of Higher Education Program $143,000
84.038 Federal Perkins Loan Program $106,276
47.076 Stem Education $97,666
16.525 Grants to Reduce Domestic Violence, Dating Violence, Sexual Assault, and Stalking on Campus $77,914
84.116 Fund for the Improvement of Postsecondary Education $58,758
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $10,373