HOWARD PAYNE UNIVERSITY

Incorrect Return of Title IV Funds Calculations Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: There were two incorrect calculations of returned funds for students that withdrew during the term. Criteria: 34 CFR 668.22 Questioned Costs: $2,861 Context: Out of 11 students, 1 student who withdrew during the audit period tested had funds returned late. This was due to the student’s calculation initially being for the full summer term instead of just one module, and the student did not complete more than 60% of the module, and therefore had not met the 49% exemption. One student’s R2T4 had been calculated based on the date the registrar had processed the paperwork for the withdrawal instead of the date of the official withdrawal or last date of attendance, whichever is later. Both students were corrected during the audit process. Cause: These were oversights by the University. Effect: Incorrect amounts of federal funding were returned. There were under-returns of Pell of $1,400 and under-returns of plus loans of $1,461. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend the University use the student’s last date of attendance or official withdrawal date for calculating the R2T4. We also recommend the University use the student’s original enrolled module schedules for determining the number of days in the term. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Incorrect Summer Pell Calculations DEPARTMENT OF EDUCATION ALN #: 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: Two students out of 35 were not properly awarded Pell based on summer enrollment status. Criteria: 34 CFR 690.63(b) Questioned Costs: $0 Context: One student was not paid Pell for a summer class in which they began attendance. This student was underawarded $556 of Pell. One student’s FAFSA was not received until after the student had earned 0 credits for a class in the summer, and so the student was not originally picked up as Pell eligible for that class, resulting in an underaward of $924 of Pell. Both students are in the process of being corrected. We understand the University has been working with the software provider (Powerfaids) to ensure summer Pell is paid correctly as a header. Cause: These were oversights by the University. Effect: There was an incorrect amount of Pell paid to these two students. Identification as repeat finding, if applicable: Yes, 2023-002. Recommendation: We continue to recommend seeking resolution with Powerfaids to ensure the proper awarding going forward. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Enrollment Reporting to NSLDS DEPARTMENT OF EDUCATION ALN #: 84.268 Federal Award Identification #: 2022-2023 Award Year Condition: The NSLDS enrollment status effective date for withdrawals was not accurately sent to NSLDS from the system. Criteria: 34 CFR 685.309 Questioned Costs: $-0- Context: Out of 63 students tested, 2 students had incorrect effective dates reported for their enrollment status. Both of these students were withdrawal students. These students were corrected during the audit. Cause: The last date of attendance was not correctly being pulled out of the system for NSLDS enrollment reporting. Effect: Inaccurate reporting can impact a student’s loan grace period in school deferment eligibility, beginning loan repayments, appropriate interest charges, etc. Identification as repeat finding, if applicable: Yes, 2022-002 Recommendation: We recommend the University continue to work with the registrar and National Student Clearinghouse to accurately report enrollment. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Incorrect Summer Pell Calculations DEPARTMENT OF EDUCATION ALN #: 84.063 Federal Award Identification #: 2022-2023 Award Year Condition: 2 students out of 39 were not properly awarded summer Pell based on enrollment status. Criteria: 34 CFR 690.63(b) Questioned Costs: $-0- Context: One student was eligible for $862 of summer Pell, but was awarded through Powerfaids $619. One student was eligible for $1,724 but awarded $619. The University is investigating why the Pell charts pulled these amounts, and has escalated the case with the software vendor. The University is in the process of correcting these two students. Cause: The calculations pulled from the government charts did not accurately award Pell based on enrollment status, expected family contribution, and cost of attendance. Effect: Pell was not awarded correctly based on enrollment status. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend seeking resolution with Powerfaids to ensure proper awarding going forward. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.