FAC Explorer

Audit 12902

FY End
2023-05-31
Total Expended
$54.15M
Findings
4
Programs
16
Organization: Lipscomb University (TN)
Year: 2023 Accepted: 2024-01-22
Auditor: Lbmc PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
9405 2023-001 - - N
9406 2023-001 - - N
585847 2023-001 - - N
585848 2023-001 - - N

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $49.11M Yes 1
84.063 Federal Pell Grant Program $3.64M Yes 1
93.732 Mental and Behavioral Health Education and Training Grants $337,030 - 0
84.007 Federal Supplemental Educational Opportunity Grants $331,500 Yes 0
84.425 Education Stabilization Fund $256,532 - 0
84.033 Federal Work-Study Program $189,176 Yes 0
47.076 Education and Human Resources $161,440 - 0
93.837 Cardiovascular Diseases Research $38,719 - 0
47.041 Engineering $33,318 - 0
43.008 Education $12,000 - 0
93.847 Diabetes, Digestive, and Kidney Diseases Extramural Research $11,716 - 0
93.307 Minority Health and Health Disparities Research $8,530 - 0
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $7,544 Yes 0
20.205 Highway Planning and Construction $6,120 - 0
84.184 Safe and Drug-Free Schools and Communities_national Programs $4,136 - 0
84.367 Improving Teacher Quality State Grants $1,226 - 0

Contacts

Name Title Type
LUENG479WQW1 Ashley Borders Auditee
6159666162 Chad Milom Auditor
No contacts on file

Notes to SEFA

Title: Basis of presentation Accounting Policies: For purposes of the Schedule, expenditures for federal and state programs are recognized on the accrual basis of accounting. Expenditures for federal student financial aid programs are recognized as incurred. These programs included Federal Pell program grants to students, the federal share of students' Federal Supplemental Educational Opportunity Grant (FSEOG) program grants, Federal Work-Study (FWS) program earnings, and certain other federal financial assistance grants for students and administrative cost allowances, where applicable. The amount of Pell grant disbursements does not include the administrative cost allowances totaling $3,910 for 2023. Additionally, no amounts were passed through to a subrecipient. De Minimis Rate Used: N Rate Explanation: The University elected not to use the 10% de minimis indirect cost rate. The accompanying Schedule of Expenditures of Federal Awards and State Financial Assistance (the "Schedule") summarizes the expenditures of Lipscomb University (the "University") under federal and state programs for the year ended May 31, 2023. 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 Principles, and Audit Requirements for Federal Awards ("Uniform Guidance"). Because the Schedule presents only a selected portion of the operations of the University, it is not intended to, and does not, present the consolidated financial position, changes in net assets or cash flows of the University. The University receives federal awards primarily from the United States Department of Education to provide financial assistance to eligible students through direct grants and loan programs. In accordance with the Department of Education's guidelines, the University is allowed to utilize a certain percentage of the federal awards for allowable administrative expenses related to the grant, work-study and student loan programs offered to students. For purposes of the Schedule, federal and state awards include all grants, contracts and similar agreements entered into directly between the University and agencies and departments of the federal government and all subawards to the University by nonfederal organizations pursuant to federal grants, contracts, and similar agreements as well as awards received directly from the State of Tennessee.
Title: Guaranteed loan programs Accounting Policies: For purposes of the Schedule, expenditures for federal and state programs are recognized on the accrual basis of accounting. Expenditures for federal student financial aid programs are recognized as incurred. These programs included Federal Pell program grants to students, the federal share of students' Federal Supplemental Educational Opportunity Grant (FSEOG) program grants, Federal Work-Study (FWS) program earnings, and certain other federal financial assistance grants for students and administrative cost allowances, where applicable. The amount of Pell grant disbursements does not include the administrative cost allowances totaling $3,910 for 2023. Additionally, no amounts were passed through to a subrecipient. De Minimis Rate Used: N Rate Explanation: The University elected not to use the 10% de minimis indirect cost rate. The University is responsible for the performance of certain administrative duties with respect to guaranteed loan programs. It is not necessary to determine the balance of loans outstanding to students and former students of the University under these programs for the year ended May 31, 2023 as the University has no liability for these loans; and therefore, the loans are not included in the University's consolidated financial statements.
Title: Federal Perkins Loan Program Accounting Policies: For purposes of the Schedule, expenditures for federal and state programs are recognized on the accrual basis of accounting. Expenditures for federal student financial aid programs are recognized as incurred. These programs included Federal Pell program grants to students, the federal share of students' Federal Supplemental Educational Opportunity Grant (FSEOG) program grants, Federal Work-Study (FWS) program earnings, and certain other federal financial assistance grants for students and administrative cost allowances, where applicable. The amount of Pell grant disbursements does not include the administrative cost allowances totaling $3,910 for 2023. Additionally, no amounts were passed through to a subrecipient. De Minimis Rate Used: N Rate Explanation: The University elected not to use the 10% de minimis indirect cost rate. The Federal Perkins Loan Program is administered directly by the University and balances and transactions relating to this program are included in the University's consolidated financial statements. The authority to make new loans under this program ended on June 30, 2018. The Department of Education has enacted procedures to return the notes receivable from debtors to the Department of Education, and the Department of Education would service the collection of the loans. The University has begun enacting these procedures. The balance of these loans as shown on the Consolidated Statements of Financial Position on May 31, 2023 and 2022 was $16,513 and $1,177,588, respectively. During the fiscal years ending May 31, 2023 and 2022, the University returned from its Perkins Loan Program $181,313 and $305,296, respectively, to the Department of Education and reimbursed itself $24,990 and $36,377, respectively, for prior years expenses incurred in operating the loan program. During the termination of the Perkins Loan Program, the University will continue to collect principal and interest on the outstanding loans. Periodically the University will be notified by the Department of Education of the amounts the University must return to the Department of Education and the amounts the University may retain. These amounts are not determinable at the present time.

Finding Details

Finding 2023-001
Condition: The amount refunded to a student that withdrew during the period of enrollment was more than the amount calculated on the R2T4 form. Criteria: When a recipient of a Title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV grant or loan assistance that the student earned as of the student's withdrawal date and must return the amount of Title IV funds for which it is responsible as soon as possible but no later than 45 days after the date of the institution's determination that the student withdrew (34 CFR 668.22(j)(1)). Questioned Costs: $324 Cause: The Return of Title IV calculation for the student in question was originally completed by an interim staff member using incorrect dates (she did not include semester scheduled days off). This calculation created a larger portion of the Federal Pell Grant to be returned. The error was found and corrected promptly. However, the term ended and the student was not registered for the next semester. It was determined the University was unable to re-request funding past the end of the term. Effect: The University was not in compliance with the return of Title IV funds based on the refund returned being greater than the calculated amount. Context: Out of 34 that withdrew during the period of enrollment and received title IV funds, one student out of four tested had a return which was greater than the calculated amount per the R2T4 form. Identification as a repeat finding, if applicable: Not applicable Recommendation: We recommend that a supervisor of the individual processing the return review all amounts being returned to verify the amounts match the approved RT24 form prior to final submission of payment. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. See corrective action plan.
Finding 2023-001
Condition: The amount refunded to a student that withdrew during the period of enrollment was more than the amount calculated on the R2T4 form. Criteria: When a recipient of a Title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV grant or loan assistance that the student earned as of the student's withdrawal date and must return the amount of Title IV funds for which it is responsible as soon as possible but no later than 45 days after the date of the institution's determination that the student withdrew (34 CFR 668.22(j)(1)). Questioned Costs: $324 Cause: The Return of Title IV calculation for the student in question was originally completed by an interim staff member using incorrect dates (she did not include semester scheduled days off). This calculation created a larger portion of the Federal Pell Grant to be returned. The error was found and corrected promptly. However, the term ended and the student was not registered for the next semester. It was determined the University was unable to re-request funding past the end of the term. Effect: The University was not in compliance with the return of Title IV funds based on the refund returned being greater than the calculated amount. Context: Out of 34 that withdrew during the period of enrollment and received title IV funds, one student out of four tested had a return which was greater than the calculated amount per the R2T4 form. Identification as a repeat finding, if applicable: Not applicable Recommendation: We recommend that a supervisor of the individual processing the return review all amounts being returned to verify the amounts match the approved RT24 form prior to final submission of payment. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. See corrective action plan.
Finding 2023-001
Condition: The amount refunded to a student that withdrew during the period of enrollment was more than the amount calculated on the R2T4 form. Criteria: When a recipient of a Title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV grant or loan assistance that the student earned as of the student's withdrawal date and must return the amount of Title IV funds for which it is responsible as soon as possible but no later than 45 days after the date of the institution's determination that the student withdrew (34 CFR 668.22(j)(1)). Questioned Costs: $324 Cause: The Return of Title IV calculation for the student in question was originally completed by an interim staff member using incorrect dates (she did not include semester scheduled days off). This calculation created a larger portion of the Federal Pell Grant to be returned. The error was found and corrected promptly. However, the term ended and the student was not registered for the next semester. It was determined the University was unable to re-request funding past the end of the term. Effect: The University was not in compliance with the return of Title IV funds based on the refund returned being greater than the calculated amount. Context: Out of 34 that withdrew during the period of enrollment and received title IV funds, one student out of four tested had a return which was greater than the calculated amount per the R2T4 form. Identification as a repeat finding, if applicable: Not applicable Recommendation: We recommend that a supervisor of the individual processing the return review all amounts being returned to verify the amounts match the approved RT24 form prior to final submission of payment. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. See corrective action plan.
Finding 2023-001
Condition: The amount refunded to a student that withdrew during the period of enrollment was more than the amount calculated on the R2T4 form. Criteria: When a recipient of a Title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV grant or loan assistance that the student earned as of the student's withdrawal date and must return the amount of Title IV funds for which it is responsible as soon as possible but no later than 45 days after the date of the institution's determination that the student withdrew (34 CFR 668.22(j)(1)). Questioned Costs: $324 Cause: The Return of Title IV calculation for the student in question was originally completed by an interim staff member using incorrect dates (she did not include semester scheduled days off). This calculation created a larger portion of the Federal Pell Grant to be returned. The error was found and corrected promptly. However, the term ended and the student was not registered for the next semester. It was determined the University was unable to re-request funding past the end of the term. Effect: The University was not in compliance with the return of Title IV funds based on the refund returned being greater than the calculated amount. Context: Out of 34 that withdrew during the period of enrollment and received title IV funds, one student out of four tested had a return which was greater than the calculated amount per the R2T4 form. Identification as a repeat finding, if applicable: Not applicable Recommendation: We recommend that a supervisor of the individual processing the return review all amounts being returned to verify the amounts match the approved RT24 form prior to final submission of payment. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. See corrective action plan.