FAC Explorer

Audit 13525

FY End
2023-06-30
Total Expended
$19.31M
Findings
6
Programs
10
Organization: Millikin University (IL)
Year: 2023 Accepted: 2024-01-24
Auditor: Sikich LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
9882 2023-001 - Yes E
9883 2023-002 - - N
9884 2023-003 - - A
586324 2023-001 - Yes E
586325 2023-002 - - N
586326 2023-003 - - A

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $13.03M Yes 1
84.063 Federal Pell Grant Program $3.12M Yes 1
84.038 Federal Perkins Loan - Federal Capital Contributions $1.64M Yes 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $570,582 - 0
84.033 Federal Work-Study Program $285,372 Yes 1
93.493 Community Project of Funding - Congressionally Directed Spending - Construction $260,146 - 0
84.007 Federal Supplemental Educational Opportunity Grants $209,191 Yes 0
84.425 Education Stabilization Fund $15,458 - 0
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $13,202 Yes 0
47.079 Office of International Science and Engineering $5,192 - 0

Contacts

Name Title Type
TPJKP6CRWA28 Amy Besser Auditee
2173626485 Ray Krouse Auditor
No contacts on file

Notes to SEFA

Title: Note 3 - Subrecipients Accounting Policies: BASIS OF PRESENTATION: The accompanying schedule of expenditures of federal awards includes the federal grantactivity of Millikin University and is presented on the accrual basis of accounting. Theinformation in this schedule is presented in accordance with the requirements of UniformAdministrative Requirements, Cost Principles, and Audit Requirements for FederalAwards. Therefore, some amounts presented in this schedule may differ from amountspresented in, or used in the preparation of, the financial statements. SUMMARY OF SIGNIFICANT 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 UniformGuidance wherein certain types of expenditures are not allowable or are limited as toreimbursement. The University has not elected to use the 10 percent de minimis indirectcost rate as allowed under Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimus cost rate No amounts were provided to subrecipients during the fiscal year ended June 30, 2023.
Title: Note 4 - Loans Outstanding Accounting Policies: BASIS OF PRESENTATION: The accompanying schedule of expenditures of federal awards includes the federal grantactivity of Millikin University and is presented on the accrual basis of accounting. Theinformation in this schedule is presented in accordance with the requirements of UniformAdministrative Requirements, Cost Principles, and Audit Requirements for FederalAwards. Therefore, some amounts presented in this schedule may differ from amountspresented in, or used in the preparation of, the financial statements. SUMMARY OF SIGNIFICANT 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 UniformGuidance wherein certain types of expenditures are not allowable or are limited as toreimbursement. The University has not elected to use the 10 percent de minimis indirectcost rate as allowed under Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimus cost rate Millikin University had $562,569 (net of allowance of $125,000) of outstanding loanbalances as of June 30, 2023 under the Federal Perkins Loan Program.
Title: Note 5 - Insurance Accounting Policies: BASIS OF PRESENTATION: The accompanying schedule of expenditures of federal awards includes the federal grantactivity of Millikin University and is presented on the accrual basis of accounting. Theinformation in this schedule is presented in accordance with the requirements of UniformAdministrative Requirements, Cost Principles, and Audit Requirements for FederalAwards. Therefore, some amounts presented in this schedule may differ from amountspresented in, or used in the preparation of, the financial statements. SUMMARY OF SIGNIFICANT 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 UniformGuidance wherein certain types of expenditures are not allowable or are limited as toreimbursement. The University has not elected to use the 10 percent de minimis indirectcost rate as allowed under Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimus cost rate Millikin University maintains property and liability insurance which management believesis sufficient to meet its needs. None of the insurance coverages are directly funded byFederal awards.
Title: Note 6 - Noncash assistance Accounting Policies: BASIS OF PRESENTATION: The accompanying schedule of expenditures of federal awards includes the federal grantactivity of Millikin University and is presented on the accrual basis of accounting. Theinformation in this schedule is presented in accordance with the requirements of UniformAdministrative Requirements, Cost Principles, and Audit Requirements for FederalAwards. Therefore, some amounts presented in this schedule may differ from amountspresented in, or used in the preparation of, the financial statements. SUMMARY OF SIGNIFICANT 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 UniformGuidance wherein certain types of expenditures are not allowable or are limited as toreimbursement. The University has not elected to use the 10 percent de minimis indirectcost rate as allowed under Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimus cost rate There was no noncash assistance received by Millikin University related to federal awardsduring the year ended June 30, 2023.

Finding Details

Finding 2023-001
2023-001 – Student Financial Aid Cluster – (a) Federal Supplemental Educational Opportunity Grants (b) Federal Work Study Program (c) Federal Perkins Loan Program – Federal Capital Contributions (d) Federal Pell Grant Program (e) Federal Direct Student Loans (f) Teacher Education Assistance for College and Higher Education (TEACH), Assistance Listing No. (a) 84.007 (b) 84.033 (c) 84.038 (d) 84.063 (e) 84.268 (f) 84.379 – Year Ended June 30, 2023 Criteria: 34 CFR 685.101 (b)(1) notes, “an eligible undergraduate student who is enrolled at a school participating in the Direct Loan Program may borrow under the Direct Subsidized Loan and Direct Unsubsidized Loan programs.” The order of dispersing aid requires that grants and subsidized loans be considered first. 34 CFR 685.200(a)(iii) “In the case of an undergraduate student who seeks a Direct Subsidized Loan or a Direct Unsubsidized Loan at a school that participates in the Federal Pell Grant Program, the student has received a determination of Federal Pell Grant eligibility for the period of enrollment for which the loan is sought.” Condition: In two of the 40 student files tested (5%), Subsidized and Unsubsidized Direct loans we not properly awarded. The University over awarded one student by $500 in Unsubsidized loans. Another student was under awarded $938 in Subsidized loans and under awarded $562 in Unsubsidized loans.We consider this condition to be an instance of noncompliance relating to the Eligibility compliance requirement and a repeat of prior year finding 2022-001. Statistical sampling was not used in making sample selections. Questioned Costs: $0 Cause and Effect: Without proper review of eligibility of financial aid, students may receive an incorrect amount of Title IV aid. Students should receive the proper amount of aid. Recommendation: We recommend the University evaluate policies and procedures to ensure students receive the proper amount of Title IV aid. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.
Finding 2023-002
2023-002 – Student Financial Aid Cluster – (a) Federal Supplemental Educational Opportunity Grants (b) Federal Work Study Program (c) Federal Perkins Loan Program – Federal Capital Contributions (d) Federal Pell Grant Program (e) Federal Direct Student Loans (f) Teacher Education Assistance for College and Higher Education (TEACH), Assistance Listing No. (a) 84.007 (b) 84.033 (c) 84.038 (d) 84.063 (e) 84.268 (f) 84.379 – Year Ended June 30, 2023 Criteria: 34 CFR 668.22 (a)(1) states “When a recipient of 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 in accordance with paragraph (e) of this section.” 34 CFR 668.22 (e)(2) states, “The percentage of title IV grant or loan assistance that has been earned by the student is - (i) Equal to the percentage of the payment period or period of enrollment that the student completed (as determined in accordance with paragraph (f) of this section) as of the student's withdrawal date, if this date occurs on or before - (A) Completion of 60 percent of the payment period or period of enrollment for a program that is measured in credit hours; or…” 34 CFR 668.22(j) notes, “(1) An institution must return the amount of title IV funds for which it is responsible under paragraph (g) of this section as soon as possible but no later than 45 days after the date of the institution's determination that the student withdrew as defined in paragraph (l)(3) of this section. The timeframe for returning funds is further described in § 668.173(b).” Condition: The University did not properly calculate the refunds for no passing grades withdrawal students for 1 out of the 16 students tested (6.3%) due to excluding SEOG Grant from the calculation. We consider this finding to be an instance of noncompliance in relation to Special Tests and Provisions. Statistical sampling was not used. Questioned Costs: $127 Cause and Effect: Without proper review of refund amounts returned, withdrawal students may return the incorrect amount of Title IV aid. Students should return the same amount as their Return of Title IV calculation. Recommendation: We recommend the University implement controls to help accurately track that Return of Title IV withdrawal calculations contain all awards disbursed and to be disbursed and that proper documentation is in the file when refunds are made. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.
Finding 2023-003
2023-003 – Student Financial Aid Cluster – (a) Federal Supplemental Educational Opportunity Grants (b) Federal Work Study Program (c) Federal Perkins Loan Program – Federal Capital Contributions (d) Federal Pell Grant Program (e) Federal Direct Student Loans (f) Teacher Education Assistance for College and Higher Education (TEACH), Assistance Listing No. (a) 84.007 (b) 84.033 (c) 84.038 (d) 84.063 (e) 84.268 (f) 84.379 – Year Ended June 30, 2023 Criteria: 34 CFR 675.19 (b)(2) notes “The institution must also establish and maintain program and fiscal records that (i) Include a certification by the student’s supervisor, an official of the institution or off-campus agency, that each student has worked and earned the amount being paid. The certification must include or be supported by, for students paid on an hourly basis, a time record showing the hours worked in clock time sequence, or the total hours worked per day…” Condition: During our testing of forty individuals receiving federal work study, we noted 2 individuals (5%) that either had timecards for hours worked that were not approved by a supervisor or had incorrect time entry. We consider this condition to be an instance of noncompliance relating to the Activities Allowed or Unallowed compliance requirement. Statistical sampling was not used in making sample selections. Questioned Costs: $154 Cause and Effect: Without proper review of hours worked, federal work study recipients could receive compensation that is not allowed under the Code of Federal Regulations. Recommendation: We recommend the College evaluate policies and procedures to ensure work study recipients are being paid for hours worked that have been certified by the recipients’ supervisor. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.
Finding 2023-001
2023-001 – Student Financial Aid Cluster – (a) Federal Supplemental Educational Opportunity Grants (b) Federal Work Study Program (c) Federal Perkins Loan Program – Federal Capital Contributions (d) Federal Pell Grant Program (e) Federal Direct Student Loans (f) Teacher Education Assistance for College and Higher Education (TEACH), Assistance Listing No. (a) 84.007 (b) 84.033 (c) 84.038 (d) 84.063 (e) 84.268 (f) 84.379 – Year Ended June 30, 2023 Criteria: 34 CFR 685.101 (b)(1) notes, “an eligible undergraduate student who is enrolled at a school participating in the Direct Loan Program may borrow under the Direct Subsidized Loan and Direct Unsubsidized Loan programs.” The order of dispersing aid requires that grants and subsidized loans be considered first. 34 CFR 685.200(a)(iii) “In the case of an undergraduate student who seeks a Direct Subsidized Loan or a Direct Unsubsidized Loan at a school that participates in the Federal Pell Grant Program, the student has received a determination of Federal Pell Grant eligibility for the period of enrollment for which the loan is sought.” Condition: In two of the 40 student files tested (5%), Subsidized and Unsubsidized Direct loans we not properly awarded. The University over awarded one student by $500 in Unsubsidized loans. Another student was under awarded $938 in Subsidized loans and under awarded $562 in Unsubsidized loans.We consider this condition to be an instance of noncompliance relating to the Eligibility compliance requirement and a repeat of prior year finding 2022-001. Statistical sampling was not used in making sample selections. Questioned Costs: $0 Cause and Effect: Without proper review of eligibility of financial aid, students may receive an incorrect amount of Title IV aid. Students should receive the proper amount of aid. Recommendation: We recommend the University evaluate policies and procedures to ensure students receive the proper amount of Title IV aid. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.
Finding 2023-002
2023-002 – Student Financial Aid Cluster – (a) Federal Supplemental Educational Opportunity Grants (b) Federal Work Study Program (c) Federal Perkins Loan Program – Federal Capital Contributions (d) Federal Pell Grant Program (e) Federal Direct Student Loans (f) Teacher Education Assistance for College and Higher Education (TEACH), Assistance Listing No. (a) 84.007 (b) 84.033 (c) 84.038 (d) 84.063 (e) 84.268 (f) 84.379 – Year Ended June 30, 2023 Criteria: 34 CFR 668.22 (a)(1) states “When a recipient of 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 in accordance with paragraph (e) of this section.” 34 CFR 668.22 (e)(2) states, “The percentage of title IV grant or loan assistance that has been earned by the student is - (i) Equal to the percentage of the payment period or period of enrollment that the student completed (as determined in accordance with paragraph (f) of this section) as of the student's withdrawal date, if this date occurs on or before - (A) Completion of 60 percent of the payment period or period of enrollment for a program that is measured in credit hours; or…” 34 CFR 668.22(j) notes, “(1) An institution must return the amount of title IV funds for which it is responsible under paragraph (g) of this section as soon as possible but no later than 45 days after the date of the institution's determination that the student withdrew as defined in paragraph (l)(3) of this section. The timeframe for returning funds is further described in § 668.173(b).” Condition: The University did not properly calculate the refunds for no passing grades withdrawal students for 1 out of the 16 students tested (6.3%) due to excluding SEOG Grant from the calculation. We consider this finding to be an instance of noncompliance in relation to Special Tests and Provisions. Statistical sampling was not used. Questioned Costs: $127 Cause and Effect: Without proper review of refund amounts returned, withdrawal students may return the incorrect amount of Title IV aid. Students should return the same amount as their Return of Title IV calculation. Recommendation: We recommend the University implement controls to help accurately track that Return of Title IV withdrawal calculations contain all awards disbursed and to be disbursed and that proper documentation is in the file when refunds are made. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.
Finding 2023-003
2023-003 – Student Financial Aid Cluster – (a) Federal Supplemental Educational Opportunity Grants (b) Federal Work Study Program (c) Federal Perkins Loan Program – Federal Capital Contributions (d) Federal Pell Grant Program (e) Federal Direct Student Loans (f) Teacher Education Assistance for College and Higher Education (TEACH), Assistance Listing No. (a) 84.007 (b) 84.033 (c) 84.038 (d) 84.063 (e) 84.268 (f) 84.379 – Year Ended June 30, 2023 Criteria: 34 CFR 675.19 (b)(2) notes “The institution must also establish and maintain program and fiscal records that (i) Include a certification by the student’s supervisor, an official of the institution or off-campus agency, that each student has worked and earned the amount being paid. The certification must include or be supported by, for students paid on an hourly basis, a time record showing the hours worked in clock time sequence, or the total hours worked per day…” Condition: During our testing of forty individuals receiving federal work study, we noted 2 individuals (5%) that either had timecards for hours worked that were not approved by a supervisor or had incorrect time entry. We consider this condition to be an instance of noncompliance relating to the Activities Allowed or Unallowed compliance requirement. Statistical sampling was not used in making sample selections. Questioned Costs: $154 Cause and Effect: Without proper review of hours worked, federal work study recipients could receive compensation that is not allowed under the Code of Federal Regulations. Recommendation: We recommend the College evaluate policies and procedures to ensure work study recipients are being paid for hours worked that have been certified by the recipients’ supervisor. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.