Finding 2735 (2023-001)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2023
Accepted
2023-11-30
Audit: 4707
Organization: Northwest Nazarene University (ID)

AI Summary

  • Core Issue: A student received Title IV aid without meeting the required satisfactory academic progress (SAP) standards.
  • Impacted Requirements: Compliance with 34 CFR 668.32(f) and 34 CFR 668.34 regarding SAP evaluation before aid disbursement.
  • Recommended Follow-Up: The University should review and improve its SAP policies to ensure timely assessments before disbursing Title IV funds.

Finding Text

2023-001 – Satisfactory Academic Progress Federal Agency: Department of Education Federal Program: Title: Student Financial Assistance Cluster CFDA Numbers: 84.007 – Federal Supplemental Education Opportunity Grants 84.033 – Federal Work Study Program 84.063 – Federal Pell Grant Program 84.268 – Federal Direct Student Loans 84.379 – Teacher Education Assistance for College and Higher Education Grants Award Period: July 1, 2022 to June 30, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 668.32(f) requires a student to maintain satisfactory academic progress (SAP) in his or her course of study according to the institution’s published standards of satisfactory academic progress that meet the requirements of 34 CFR 668.34. Condition: During our testing student eligibility, we noted one student of 40 tested that was not meeting the SAP requirements and no appeal was on file to make the student eligible to receive Title IV aid. Questioned Costs: None Cause: The University’s processes and controls did not ensure that SAP was measured prior to disbursing Title IV disbursements. Effect: The student received Title IV aid when they were not eligible to receive the aid. Repeat Finding: No Recommendation: We recommend the University review its SAP review policies to ensure it is completed timely and before Title IV disbursements occur. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.

Corrective Action Plan

Title: Student Financial Assistance Cluster – Assistance Listing Nos. 84.007, 84.033, 84.063, 84.268 Recommendation: We recommend the University review its SAP review policies to ensure it is completed timely and before Title IV disbursements occur. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Prior to this finding, in November 2022 our Registrar implemented a change in process to require a form when assigning either an L and I grade to a student. This ensures that the correct grade type is used in all cases depending on the nature of the work still outstanding. In doing so, it allows more accurate and timely assess a student’s GPA for SAP status on a regular schedule within the timeline expected for each type of grade when a final grade is determined. The Financial Aid office had also implemented an additional tracking mechanism outside of our ERP system to monitor the SAP status of each student to augment deficiencies in our ERP related to tracking the correct status over time. This tracking occurs regardless of the timing of a FAFSA being completed or the consistency of student enrollment from one semester to the next. This allows us to know the eligibility status of a student prior to awarding and disbursement, and require an appeal when appropriate. This was implemented May 2023. Regardless, as per policy and as we’ve been doing, we will continue to evaluate grade changes at the time of the next regular SAP evaluation period, and enforce the policy based on their status from that point forward. Name(s) of the contact person(s) responsible for corrective action: Dwight R Berreth Planned completion date for corrective action plan: August 2023

Categories

Student Financial Aid Eligibility Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 2736 2023-001
    Significant Deficiency
  • 2737 2023-001
    Significant Deficiency
  • 2738 2023-001
    Significant Deficiency
  • 2739 2023-001
    Significant Deficiency
  • 579177 2023-001
    Significant Deficiency
  • 579178 2023-001
    Significant Deficiency
  • 579179 2023-001
    Significant Deficiency
  • 579180 2023-001
    Significant Deficiency
  • 579181 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $12.06M
84.063 Federal Pell Grant Program $1.64M
84.007 Federal Supplemental Educational Opportunity Grants $180,212
84.033 Federal Work-Study Program $139,032
47.083 Integrative Activities $18,212
43.008 Education $17,297
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $8,801
10.170 Specialty Crop Block Grant Program - Farm Bill $6,494
93.859 Biomedical Research and Research Training $5,551