Finding 45250 (2022-002)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
$1
Year
2022
Accepted
2022-11-05
Audit: 40639
Organization: Wayland Baptist University (TX)
Auditor: Capincrouse LLP

AI Summary

  • Core Issue: The University failed to return Title IV funds correctly and on time for students who withdrew, leading to significant financial discrepancies.
  • Impacted Requirements: Compliance with 34 CFR 668.22 was not met, resulting in questioned costs of $2,649 and late returns of Title IV funds ranging from 3 to 156 days.
  • Recommended Follow-Up: Implement enhanced training and oversight on R2T4 processes, focusing on calendar accuracy, Pell recalculations, and attendance tracking.

Finding Text

Incorrect and Late Returns of Title IV Funds (R2T4) Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2021-22 Financial Aid Year Condition: The University did not correctly and timely return all required federal funds when a student withdrew or stopped attending. Criteria: 34 CFR 668.22 Questioned Costs: $2,649 Context: Out of 19 students, 4 students who withdrew during the audit period tested had funds returned late, and 2 students did not have funds returned that should have. One student was not offered a post-withdrawal disbursement when they should have been. Additionally, 6 calculations were not accurate calculations, of which 1 was a modular student. This student had an incorrect R2T4 calculation due to Pell. Pell of $812 should have been recalculated for failure to begin attendance in all classes awarded and those funds returned prior to completing the R2T4. These have not yet been corrected. Cause: There were multiple causes of the incorrect and late returns. There were incorrect calendars used, as the University has multiple campuses with different calendars. There was incorrect application of guidance within the attendance taking period before the student withdrew. One student did not have loan fees accounted for within the return, resulting in an under return. The University also experienced turnover in the financial aid department. Effect: Incorrect amounts of federal funding were returned. There were under-returns of Pell of $2,640 and under-returns of subsidized loans of $9. Title IV funds totaling $9,764 were returned late ranging from 3 to 156 days. Identification as repeat finding, if applicable: Yes, 2021-004 and 2020-003. Recommendation: We recommend that the University provide additional training and oversight on R2T4s, with specific emphasis on correct calendars, Pell recalculations, and dates attended. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Categories

Questioned Costs Student Financial Aid HUD Housing Programs Material Weakness Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 41637 2022-002
    Material Weakness Repeat
  • 45247 2022-003
    Material Weakness Repeat
  • 45248 2022-005
    -
  • 45249 2022-006
    -
  • 45251 2022-003
    Material Weakness Repeat
  • 45252 2022-004
    Significant Deficiency Repeat
  • 45253 2022-006
    -
  • 618079 2022-002
    Material Weakness Repeat
  • 621689 2022-003
    Material Weakness Repeat
  • 621690 2022-005
    -
  • 621691 2022-006
    -
  • 621692 2022-002
    Material Weakness Repeat
  • 621693 2022-003
    Material Weakness Repeat
  • 621694 2022-004
    Significant Deficiency Repeat
  • 621695 2022-006
    -

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $16.31M
84.063 Federal Pell Grant Program $4.88M
84.425 Covid-19 Education Stabilization Fund Heerf - Student Aid Portion $4.51M
84.425 Covid-19 Education Stabilization Fund Heerf - Institutional Portion $4.12M
84.007 Federal Supplemental Educational Opportunity Grants $265,650
84.033 Federal Work-Study Program $134,681
84.038 Federal Perkins Loan Program $125,412
84.425 Covid-19 Education Stabilization Fund Heerf -- Supplemental Assistance to Institutions of Higher Education Program $121,174
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $15,088