IOWA WESLEYAN UNIVERSITY

Iowa Wesleyan University respectfully submits the following corrective action plan for the year ended May 31, 2021. Name and address of independent public accounting firm: TDT CPAs and Advisors, P.C. 1700 42nd St NE Cedar Rapids, IA 52402 The findings from the May 31, 2021 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. 3) Findings and Questioned Costs for Federal Awards (a) Internal Control over Compliance Material Weakness: Finding 2021-001 - Disclosure of Consumer Information to Students Criteria and Condition: Department of Education requirements indicate that consumer information must be disclosed to students at least annually. The University has included all consumer information on its website but did not notify students as required. See Finding 2021- 004 for further details. Context: The University had several personnel changes in the student financial aid depaitment in the past year. Cause: The requirement for communicating consumer information to students was overlooked as financial aid staff were not aware of the requirement. Effect: The University did not comply with the requirement to disclose consumer information to students each semester (see compliance finding 2021-004) Recommendation: We recommend the University implement and document procedures to ensure consumer information is communicated to students at the beginning of each academic period. Response: The University has updated its procedure documentation to ensure consumer information is communicated each academic period.

2021-002 - Return of Title IV Funds (R2T4) Calculation Errors Criteria and Condition: Out of a sample of 5 students, we noted the University used the incorrect last date of attendance (LDA) for its calculation of Return of Title IV Funds for one withdrawing student. The error was not identified by the University's procedures for preparing and reviewing the R2T4 calculation. and the return of Title rv funds was not completed within the 45-day requirement from the time the University determined the student's withdrawal. Context: In the case of the student tested, the last date of attendance was evident from the documentation related to the student withdrawal. The number of days completed was entered as 21 days whereas the student completed 22 days. In addition, the final return was not processed through the Common Origination and Disbursement system within the required 45 days from the date the University determined the withdrawal. Cause: The University's preparation and review process did not timely identify the error. Effect: The University returned $50 more than required to the DOE as a Return of Title rv funds, which is not material to the federal program. Recommendation: We recommend the University evaluate its procedures for reviewing R2T4 calculations and implement changes to validate the inputs to the calculation. Response: The University has implemented additional oversight procedures to monitor the calculations for Return of Title rv funds.

Finding 2021-003 - Review of Student Files and Awarding Procedures Criteria and Condition: Out of a sample of 40 students, we identified errors in awarding for three students. The errors were not identified by the University's monitoring procedures over student files. Context: One student was awarded an incorrect Pell allocation (was entitled to an additional $50 per semester). One student exceeded the aggregate limit for direct loans of $31,000 by $1,061. One student received a direct loan, but the University was unable to locate the student certification accepting the loan. Cause: The University's monitoring procedures did not identify the errors or maintain the required documentation for the student files noted. Effect: Errors were made in awards made to students and not detected. The errors were not material to the federal program. Recommendation: We suggest the University implement a more detailed review of student files to ensure all documentation is included and awards are calculated correctly based on the student's financial information. Response: The University has implemented additional review procedures to monitor the student aid awarding and packaging.

The audit disclosed one instance of noncompliance that is required to be reported according to the Uniform Guidance (UG). Finding 2021-004 - Consumer Information Criteria and Condition: A school must annually provide a notice directly to all enrolled students describing the availability of the required consumer information. The notice must contain a brief description of the various disclosures and how to obtain the full disclosures. The University did not disclose consumer information to students as required. Finding 2021-004 - Consumer Information (Continued) Context: The University had several personnel changes in the student financial aid department in the past year. Cause: The requirement for communicating consumer information to students was overlooked as financial aid staff were not aware of the requirement. Effect: The University did not comply with the requirement to disclose consumer information to students. Recommendation: We recommend the University implement and document procedures to ensure consumer information is communicated to students at the beginning of each academic period. Response: The University has updated its procedure documentation to ensure consumer information is communicated each academic period. Questioned Costs: $0 If the Department of Education has questions regarding this plan, please contact Chris Plunkett, President at 319-385-6204. Sincerely, Iowa Wesleyan University

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