Audit 12375

FY End
2023-06-30
Total Expended
$55.90M
Findings
2
Programs
29
Organization: Morehouse College (GA)
Year: 2023 Accepted: 2024-01-18
Auditor: Kpmg LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
9043 2023-001 Significant Deficiency - N
585485 2023-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $35.21M Yes 1
84.063 Federal Pell Grant Program $6.10M Yes 0
84.038 Federal Perkins Student Loan Program $1.83M Yes 0
84.007 Federal Supplemental Educational Opportunity Grants $1.09M Yes 0
84.031 Higher Education_institutional Aid $595,822 Yes 0
93.456 Cdc Undergraduate Public Health Scholars Program (cups): A Public Health Experience to Expose Undergraduates Interested in Minority Health to Public Health and the Public Health Professions $341,731 - 0
84.044 Trio_talent Search $251,587 - 0
84.425 Education Stabilization Fund $245,743 - 0
84.217 Trio_mcnair Post-Baccalaureate Achievement $178,185 - 0
81.123 National Nuclear Security Administration (nnsa) Minority Serving Institutions (msi) Program $115,987 - 0
59.037 Small Business Development Centers $110,680 - 0
47.074 Biological Sciences $108,578 - 0
84.033 Federal Work-Study Program $105,171 Yes 0
10.559 Summer Food Service Program for Children $99,317 - 0
19.040 Public Diplomacy Programs $95,034 - 0
12.598 Centers for Academic Excellence $91,939 - 0
11.802 Minority Business Resource Development $90,791 - 0
47.049 Mathematical and Physical Sciences $87,714 - 0
47.041 Engineering $84,621 - 0
45.149 Promotion of the Humanities_division of Preservation and Access $80,977 - 0
47.076 Education and Human Resources $52,694 - 0
84.116 Fund for the Improvement of Postsecondary Education $20,734 - 0
93.859 Biomedical Research and Research Training $6,643 - 0
94.013 Volunteers in Service to America $2,044 - 0
93.283 Centers for Disease Control and Prevention_investigations and Technical Assistance $0 - 0
47.070 Computer and Information Science and Engineering $0 - 0
81.094 Stem Scholarship Program $0 - 0
15.904 Historic Preservation Fund Grants-in-Aid $0 - 0
93.135 Centers for Research and Demonstration for Health Promotion and Disease Prevention $-273 - 0

Contacts

Name Title Type
KTE2MFWTKAE5 Haskell Ruff Auditee
4706390525 Dasha Walker Auditor
No contacts on file

Notes to SEFA

Title: Noncash Federal Assistance Accounting Policies: (1) Basis of Presentation The accompying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Morehouse College (the College) and is presented on the accrual basis of accounting. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost of Principles, and Audit Requirements for Federal Awards (the Uniform Guidance). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the financial statements. Expenditures include a portion of costs associated with general college activities (indirect costs), which are allocated to federal awards under negotiated formulas commonly referred to as indirect cost rates. Indirect costs and related revenue in the Colleges basic financial statements. Restricted grants and contracts and other agreements are recognized in the Schedule when funds are expended and receviable from the federal government. De Minimis Rate Used: N Rate Explanation: (2) Indirect Cost Rate The College did not elect to use the 10% de minimis indirect cost rate, as allowed in accordance with Uniform Guidance Section 200.414. (3) Noncash Federal Assistance Most federal financial assistance is in the form of cash awards. However, there are a number of federal programs that do not involve cash transactions with the College. These noncash awards include the Federal Direct Student Loan Program (FDSLP) (which includes the Federal Stafford Student Loan Program and the Federal Parent Loans for Undergraduate Students) and the Federal Perkins Student Loan Program. Loans advanced and related expenditures for the year ended June 30, 2023 are as follows for the following student loan programs: (See the Notes to the SEFA for chart/table.).The College is only responsible for the performance of certain administrative duties with respect to the FDSLP. Therefore, it is not practicable to determine the balance of loans outstanding to students and former students of the College under these programs as of June 30, 2023. These loans are not included in the College’s financial statements. The Federal Perkins Student Loan Program is administered directly by the College, and balances and transactions relating to this program are included in the College’s financial statements. The balance of loans outstanding under the Federal Perkins Student Loan Program is $1,374,507 at June 30, 2023. Perkins Loans advanced in 2023 totaled $0.
Title: Administrative Cost Allowance Accounting Policies: (1) Basis of Presentation The accompying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Morehouse College (the College) and is presented on the accrual basis of accounting. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost of Principles, and Audit Requirements for Federal Awards (the Uniform Guidance). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the financial statements. Expenditures include a portion of costs associated with general college activities (indirect costs), which are allocated to federal awards under negotiated formulas commonly referred to as indirect cost rates. Indirect costs and related revenue in the Colleges basic financial statements. Restricted grants and contracts and other agreements are recognized in the Schedule when funds are expended and receviable from the federal government. De Minimis Rate Used: N Rate Explanation: (2) Indirect Cost Rate The College did not elect to use the 10% de minimis indirect cost rate, as allowed in accordance with Uniform Guidance Section 200.414. (4) Administrative Cost Allowance The College claimed an administrative cost allowance of $0 under the Federal Work Study Program for the year ended June 30, 2023, which is included in the Federal Work Study Program and Federal Supplemental Educational Opportunity Grant balances in the accompanying Schedule.

Finding Details

Finding No. 2023-001 Reporting Federal Program Student Financial Assistance Cluster AL No. 84.268 Federal Direct Student Loans Federal Agency U.S. Department of Education Federal Award Years October 1, 2021 to September 30, 2022 October 1, 2022 to September 30, 2023 Criteria or Requirement Institutions that implement an affirmative confirmation process (as described in 34 CFR 668.165 (a)(6)(i)) must make this notification to the student or parent no earlier than 30 days before, and no later than 30 days after, crediting the student’s account at the institution with Direct Loan or TEACH Grants. Condition and Context During our testwork, we selected a sample of 40 students that were awarded federal loans during fiscal year 2023. Within our sample, we noted 10 out of 160 instances across 9 students in which the College did notify the student, no earlier than 30 days before, and no later than 30 days, after crediting the student’s account with Direct Loan as required. Cause and Potential Effect Noncompliance due to no control in place to ensure that all notifications of loan disbursements are submitted promptly. The federal loan disbursement notification reporting exceptions are systemic in nature. Questioned Cost There were no questioned cost associated with the finding. Statistically Valid Sample The sample was not intended to be, and was not, a statistically valid sample. Identification of Whether the Audit Finding is a Repeat Finding in the Immediately Prior Audit This is not a repeat finding in the immediately prior year audit. Recommendation We recommend that the College strengthen its processes and controls to ensure timely reporting of loan disbursement notifications to students and that additional supervisory review procedures be implemented to monitor timely reporting of these notifications. View of Responsible Officials Management agrees with the finding. An enhanced internal control process will be implemented by the Office of Financial Aid and Scholarship Department to ensure that all disbursement notifications are reported to the student within the 30 day reporting requirement
Finding No. 2023-001 Reporting Federal Program Student Financial Assistance Cluster AL No. 84.268 Federal Direct Student Loans Federal Agency U.S. Department of Education Federal Award Years October 1, 2021 to September 30, 2022 October 1, 2022 to September 30, 2023 Criteria or Requirement Institutions that implement an affirmative confirmation process (as described in 34 CFR 668.165 (a)(6)(i)) must make this notification to the student or parent no earlier than 30 days before, and no later than 30 days after, crediting the student’s account at the institution with Direct Loan or TEACH Grants. Condition and Context During our testwork, we selected a sample of 40 students that were awarded federal loans during fiscal year 2023. Within our sample, we noted 10 out of 160 instances across 9 students in which the College did notify the student, no earlier than 30 days before, and no later than 30 days, after crediting the student’s account with Direct Loan as required. Cause and Potential Effect Noncompliance due to no control in place to ensure that all notifications of loan disbursements are submitted promptly. The federal loan disbursement notification reporting exceptions are systemic in nature. Questioned Cost There were no questioned cost associated with the finding. Statistically Valid Sample The sample was not intended to be, and was not, a statistically valid sample. Identification of Whether the Audit Finding is a Repeat Finding in the Immediately Prior Audit This is not a repeat finding in the immediately prior year audit. Recommendation We recommend that the College strengthen its processes and controls to ensure timely reporting of loan disbursement notifications to students and that additional supervisory review procedures be implemented to monitor timely reporting of these notifications. View of Responsible Officials Management agrees with the finding. An enhanced internal control process will be implemented by the Office of Financial Aid and Scholarship Department to ensure that all disbursement notifications are reported to the student within the 30 day reporting requirement