FAC Explorer

Audit 13102

FY End
2023-05-31
Total Expended
$7.77M
Findings
2
Programs
12
Organization: Hendrix College (AR)
Year: 2023 Accepted: 2024-01-23
Auditor: Forvis LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
9505 2023-001 Significant Deficiency Yes N
585947 2023-001 Significant Deficiency Yes N

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $4.94M Yes 0
84.063 Federal Pell Grant Program $1.35M Yes 0
84.038 Federal Perkins Loan Program $581,630 Yes 1
93.859 Biomedical Research and Research Training $320,996 - 0
84.033 Federal Work-Study Program $207,302 Yes 0
84.007 Federal Supplemental Educational Opportunity Grants $174,354 Yes 0
47.074 Biological Sciences $104,194 - 0
47.076 Education and Human Resources $77,581 - 0
43.008 Education $15,076 - 0
15.634 State Wildlife Grants $5,906 - 0
66.509 Science to Achieve Results (star) Research Program $1,491 - 0
15.615 Cooperative Endangered Species Conservation Fund $72 - 0

Contacts

Name Title Type
FJQNLA23C6K1 Shawn Mathis Auditee
5014501333 Corey Jennings Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The College has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of the College under programs of the federal government for the year ended May 31, 2023. The information in this 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 College, it is not intended to and does not present the financial position, changes in net assets or cash flows of the College.
Title: Federal Loan Programs Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The College has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The federal loan programs listed subsequently are administered directly by the College, and balances and transactions relating to these programs are included in the College’s consolidated financial statements. Loans outstanding at the beginning of the year and loans made during the year are included in the federal expenditures presented in the Schedule. The balance of loans outstanding at May 31, 2023, consists of: Assistance Listing Number 84.038 Federal Perkins Loan Program with an outstanding balance at May 31, 2023 of $328,663.

Finding Details

Finding 2023-001
Student Financial Assistance Cluster Federal Perkins Loan Program, Assistance Listing Number 84.038 U.S. Department of Education Program Year 2022-2023 Criteria: Special Tests and Provisions – Perkins Loan Recordkeeping and Record Retention – Institutions are required to properly maintain its Perkins loan records in the manner set forth in 34 CFR 674.19.(e). Condition: The College did not maintain Perkins loan records in the manner set forth in 34 CFR 674.19.(e). (Other Instance of Noncompliance) Questioned Costs: None. Context: During testing of Perkins loan recordkeeping and record retention, for open loans at year end May 31, 2023, 13 of 40 selections did not have records of the related master promissory note (MPN) and related documents. A sample of 40 were selected for testing from a population of 372. For loans retired or assigned within the previous three years, 2 of 29 selections did not have records of the related MPN and related documents. A sample of 29 were selected for testing from a population of 189. Our sample selections were not, and were not intended to be, statistically valid. Effect: The College does not have documentation of MPNs and related documents for the errors identified. Cause: The College’s processes did not ensure MPNs and related documents were properly retained. Identification as a Repeat Finding, if Applicable: 2022-002 Recommendation: The College should revisit the record retention for student related files. Views of Responsible Officials and Planned Corrective Actions: Administration concurs with the finding. As of November 30, 2023, the Administration has reviewed documentation for the remaining 220 active loans with balances greater than $0.00. It was determined the College has MPNs for 182 or 82.73% of the outstanding loans. Of the remaining 38 loans, 30 loans contain student-initiated activity that substantiates the debt. 8 Loans, or 3.6%, did not have a record of a MPN or alternative documentation.
Finding 2023-001
Student Financial Assistance Cluster Federal Perkins Loan Program, Assistance Listing Number 84.038 U.S. Department of Education Program Year 2022-2023 Criteria: Special Tests and Provisions – Perkins Loan Recordkeeping and Record Retention – Institutions are required to properly maintain its Perkins loan records in the manner set forth in 34 CFR 674.19.(e). Condition: The College did not maintain Perkins loan records in the manner set forth in 34 CFR 674.19.(e). (Other Instance of Noncompliance) Questioned Costs: None. Context: During testing of Perkins loan recordkeeping and record retention, for open loans at year end May 31, 2023, 13 of 40 selections did not have records of the related master promissory note (MPN) and related documents. A sample of 40 were selected for testing from a population of 372. For loans retired or assigned within the previous three years, 2 of 29 selections did not have records of the related MPN and related documents. A sample of 29 were selected for testing from a population of 189. Our sample selections were not, and were not intended to be, statistically valid. Effect: The College does not have documentation of MPNs and related documents for the errors identified. Cause: The College’s processes did not ensure MPNs and related documents were properly retained. Identification as a Repeat Finding, if Applicable: 2022-002 Recommendation: The College should revisit the record retention for student related files. Views of Responsible Officials and Planned Corrective Actions: Administration concurs with the finding. As of November 30, 2023, the Administration has reviewed documentation for the remaining 220 active loans with balances greater than $0.00. It was determined the College has MPNs for 182 or 82.73% of the outstanding loans. Of the remaining 38 loans, 30 loans contain student-initiated activity that substantiates the debt. 8 Loans, or 3.6%, did not have a record of a MPN or alternative documentation.