Finding 3848 (2023-001)

-
Requirement
E
Questioned Costs
$1
Year
2023
Accepted
2023-12-11
Audit: 6063
Organization: Western Governors University (UT)
Auditor: Tanner LLC

AI Summary

  • Core Issue: WGU failed to properly identify students with the TPD code due to system misconfiguration, leading to premature disbursement of Title IV funds.
  • Impacted Requirements: Students with a TPD code must be reviewed and documented before receiving additional Title IV funds, as mandated by the DOE.
  • Recommended Follow-Up: Reconfigure the system to align with DOE reporting changes and ensure compliance by reviewing TPD students before fund disbursement.

Finding Text

In June 2023, during an internal quality assurance review, WGU identified a population of students that had the comment code 282 – Total and Permanent Disability (TPD). Students with a TPD code have had prior loans discharged due to total and permanent disability and must be reviewed before they are eligible for additional Title IV funds. As a result of not reconfiguring WGU’s system after changes were made by the U.S. Department of Education ( DOE) in how certain codes are reported to participating universities, WGU’s system did not properly identify students with the TPD code and, therefore, WGU did not initially obtain additional documentation from these students, as required, before disbursing additional Title IV funds to these students.

Corrective Action Plan

WGU has implemented the appropriate identification of the TPD comment codes with our new aid year configuration and will continue this course of action whenever the new aid year FAFSA is released. The comment code numbering changed in 2024‐ 2025 from 2023‐2024. WGU will review and match the new 2024‐2025 codes with its corresponding 2023‐2024 codes to ensure our system is configured to identify ISIR records that are flagged by FSA requiring further action accordingly. Auditee Contact Person(s) Responsible for Corrective Action: Patti Kohler Vice President, Financial Aid.

Categories

Questioned Costs Student Financial Aid Matching / Level of Effort / Earmarking

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $587.61M
84.063 Federal Pell Grant Program $231.23M
84.007 Federal Supplemental Educational Opportunity Grants $6.88M
84.033 Federal Work-Study Program $2.56M
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $1.15M
84.126 Rehabilitation Services - Vocational Rehabilitation Grants to States $584,738
21.027 Coronavirus State and Local Fiscal Recovery Funds $503,316
17.245 Trade Adjustment Assistance $197,806
17.258 Workforce Innvation and Opportunity Act - Adult Program $7,700
84.408 Postsecondary Education Scholarships for Veteran's Dependents $6,501