Finding 621694 (2022-004)

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

AI Summary

  • Core Issue: Students were incorrectly awarded federal financial aid due to outdated information not being updated after changes in their ISIR.
  • Impacted Requirements: This violates 34 CFR 685.203, leading to inaccurate awarding and disbursing of need-based aid.
  • Recommended Follow-Up: The University should base aid awards solely on credits earned, disregarding the FAFSA line, to ensure accurate financial aid distribution.

Finding Text

Need Analysis Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268 Federal Award Identification #: 2021-22 Financial Aid Year Condition: Students were not initially appropriately awarded subsidized aid based on need. Students were not appropriately awarded subsidized loans based on need. When there was a change in student?s information on the ISIR and a subsequent ISIR was produced, in some instances, the University did not update the student?s federal financial aid awarding to reflect the updated information. Errors in need analysis for federal financial aid let to inaccurate awarding and disbursing need based federal financial aid. Criteria: 34 CFR 685.203 Questioned Costs: $2,000 Context: 5 students out of 60 were not awarded the correct amount of subsidized and unsubsidized loans based on the year of enrollment as defined by the credit hours earned at the University. Of these 5 students, 2 students attended one semester so they were not over-awarded for the whole year. One student was awarded as a senior but was only a sophomore, resulting in $1,000 sub and $1,000 unsub to be returned. The other two students were under-awarded by $4,000. These are not yet corrected. Cause: The University imported the self-reported line from the FAFSA and did not override this field for all students based on credits earned at the time of the awarding. Effect: One student received subsidized and unsubsidized federal aid for which they were not eligible while 2 others did not receive the aid for which they were eligible. Identification as repeat finding, if applicable: Yes, 2021-008. Recommendation: We recommend the University ignore the FAFSA line and only use the credits earned for awarding. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Categories

Questioned Costs Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 41637 2022-002
    Material Weakness Repeat
  • 45247 2022-003
    Material Weakness Repeat
  • 45248 2022-005
    -
  • 45249 2022-006
    -
  • 45250 2022-002
    Material Weakness Repeat
  • 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
  • 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