FAC Explorer

Audit 15573

FY End
2023-06-30
Total Expended
$10.37M
Findings
4
Programs
8
Organization: Harcum College (PA)
Year: 2023 Accepted: 2024-02-05
Auditor: Baker Tilly US LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
11757 2023-001 Significant Deficiency - N
11758 2023-001 Significant Deficiency - N
588199 2023-001 Significant Deficiency - N
588200 2023-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $6.25M Yes 1
84.063 Federal Pell Grant Program $2.62M Yes 1
84.047 Trio_upward Bound $493,604 Yes 0
84.048 Career and Technical Education -- Basic Grants to States $362,642 - 0
84.042 Trio_student Support Services $306,184 Yes 0
84.007 Federal Supplemental Educational Opportunity Grants $182,478 Yes 0
84.033 Federal Work-Study Program $105,059 Yes 0
84.038 Federal Perkins Loans $49,065 Yes 0

Contacts

Name Title Type
MPEQFUJ6ENU3 Dario Bellot Auditee
2154338925 Joseph Sassa Auditor
No contacts on file

Notes to SEFA

Title: 1. Basis of Presentation Accounting Policies: Expenditures reported in 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% de minimum indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes federal grant activity of Harcum College (the College) under programs of the federal government for the year ended June 30, 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 this 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: 2. Summary of Significant Accounting Policies Accounting Policies: Expenditures reported in 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% de minimum indirect cost rate allowed under the Uniform Guidance. Expenditures reported in 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.
Title: 3. Student Financial Assistance Loan Programs Accounting Policies: Expenditures reported in 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% de minimum indirect cost rate allowed under the Uniform Guidance. The Federal Perkins Loan Program was administered directly by the College and balances and transactions relating to these programs are included in the College's basic 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. As of June 30, 2023, there were no Federal Perkins Student Loans outstanding as the College liquidated their portfolio of loans during the year.
Title: 4. Indirect Cost Rate Accounting Policies: Expenditures reported in 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% de minimum indirect cost rate allowed under the Uniform Guidance. The College has elected not to use the 10% de minimum indirect cost rate allowed under the Uniform Guidance.
Title: 5. Federal Perkins Loan Program Liquidation Accounting Policies: Expenditures reported in 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% de minimum indirect cost rate allowed under the Uniform Guidance. In 2023, the College elected to cease participation in the Perkins Loan Program. The 2023 Single Audit included testing of the Federal Perkins Loan liquidation compliance requirements and the College properly performed end-of-participation procedures in accordance with the Uniform Guidance.

Finding Details

Finding 2023-001
Federal Program – Federal Pell Grant Program, Federal Direct Student Loan Program Federal Agency – U.S. Department of Education Pass-Through Entity – Not Applicable CFDA Number – 84.063, 84.268 Federal Award Year – June 30, 2023 Criteria: The Uniform Guidance requires recipients of federal awards to administer its federal programs with an adequate system of internal controls over applicable compliance requirements. In addition, when a recipient of Title IV grant or loan assistance withdraws from an institution during a payment period, Title IV regulations (34 CFR 668.22) require the College to determine, through a Return of Title IV Funds (R2T4) calculation, the amount of Title IV grant or loan assistance that the student earned as of the withdrawal date and return the unearned portion of the grant or loan to the Title IV programs as soon as possible but no later than 45 days after the withdrawal date. Condition/Context: The amount of Title IV aid to be refunded was not properly calculated for two out of four students tested with Return of Title IV calculations which resulted in the College returning more aid than necessary. In addition, one student, out of four students tested with R2T4 calculations, was inadvertently disbursed funds in excess of their amount earned after withdrawing from the College. This was the only student which received a post-withdrawal disbursement at the College for the 2023 fiscal year. Cause: The College did not properly calculate the number of days in a term by excluding the total amount of days in their spring break, which resulted in the incorrect unearned aid percentage to be used in all spring 2023 refund calculations. As soon as the improper calculation was brought to the attention of the College, all fourteen students for whom a Spring R2T4 calculation was performed, had their R2T4s recalculated. In addition, the full amount of the Title IV aid which was calculated as to be disbursed in one student's R2T4 calculation was disbursed, rather than just the portion earned for their time enrolled in the semester at the College. Effect: The College returned more aid than necessary based on the students’ percentage of completion in the spring 2023 semester. In addition, one student received more funds than they earned, and the College did not return the proper amount of Title IV funds to the Department of Education as a result of the student's withdrawal. Questioned Costs: The College returned $504 more in Federal Direct Loans and $100 more in Federal Pell Grants than necessary based on the inaccurate R2T4 calculations in the spring 2023 semester. $1,009 of Federal Direct Student Loans were disbursed post-withdrawal that were not earned by the student based on the students last attendance date at the College. Recommendation: The College should reevaluate their process around completing R2T4 calculations, specifically with post-withdrawal disbursements, to ensure only the amount of aid earned by a student gets disbursed. In addition, this process should involve a secondary level of review to ensure the days completed and total days in the semester are accurate based on the College’s academic calendar. View of Responsible Officials and Planned Corrective Action: Going forward, the Assistant Vice President of Financial Aid (Asst. VP) will review the academic year calendar and determine the start and end dates of each term and each break in attendance. The Asst. VP will enter the appropriate dates into the PowerFAIDS Administration POEs and Budgets module. The Associate Director of Financial Aid (Associate Director) will then review the academic calendar and confirm that the dates entered into the PowerFAIDS Administration POEs and Budgets module are accurate. An email will be sent from the Associate Director to the Asst. VP for record keeping and confirmation of the review. In addition, for a student who may be eligible for a post withdrawal disbursement, the Associate Director will calculate the amount to be disbursed and then the Asst. VP will confirm the amount to be disbursed at the time the disbursement is authorized. The College believes this two-step confirmation approach will reduce the likelihood of an error moving forward.
Finding 2023-001
Federal Program – Federal Pell Grant Program, Federal Direct Student Loan Program Federal Agency – U.S. Department of Education Pass-Through Entity – Not Applicable CFDA Number – 84.063, 84.268 Federal Award Year – June 30, 2023 Criteria: The Uniform Guidance requires recipients of federal awards to administer its federal programs with an adequate system of internal controls over applicable compliance requirements. In addition, when a recipient of Title IV grant or loan assistance withdraws from an institution during a payment period, Title IV regulations (34 CFR 668.22) require the College to determine, through a Return of Title IV Funds (R2T4) calculation, the amount of Title IV grant or loan assistance that the student earned as of the withdrawal date and return the unearned portion of the grant or loan to the Title IV programs as soon as possible but no later than 45 days after the withdrawal date. Condition/Context: The amount of Title IV aid to be refunded was not properly calculated for two out of four students tested with Return of Title IV calculations which resulted in the College returning more aid than necessary. In addition, one student, out of four students tested with R2T4 calculations, was inadvertently disbursed funds in excess of their amount earned after withdrawing from the College. This was the only student which received a post-withdrawal disbursement at the College for the 2023 fiscal year. Cause: The College did not properly calculate the number of days in a term by excluding the total amount of days in their spring break, which resulted in the incorrect unearned aid percentage to be used in all spring 2023 refund calculations. As soon as the improper calculation was brought to the attention of the College, all fourteen students for whom a Spring R2T4 calculation was performed, had their R2T4s recalculated. In addition, the full amount of the Title IV aid which was calculated as to be disbursed in one student's R2T4 calculation was disbursed, rather than just the portion earned for their time enrolled in the semester at the College. Effect: The College returned more aid than necessary based on the students’ percentage of completion in the spring 2023 semester. In addition, one student received more funds than they earned, and the College did not return the proper amount of Title IV funds to the Department of Education as a result of the student's withdrawal. Questioned Costs: The College returned $504 more in Federal Direct Loans and $100 more in Federal Pell Grants than necessary based on the inaccurate R2T4 calculations in the spring 2023 semester. $1,009 of Federal Direct Student Loans were disbursed post-withdrawal that were not earned by the student based on the students last attendance date at the College. Recommendation: The College should reevaluate their process around completing R2T4 calculations, specifically with post-withdrawal disbursements, to ensure only the amount of aid earned by a student gets disbursed. In addition, this process should involve a secondary level of review to ensure the days completed and total days in the semester are accurate based on the College’s academic calendar. View of Responsible Officials and Planned Corrective Action: Going forward, the Assistant Vice President of Financial Aid (Asst. VP) will review the academic year calendar and determine the start and end dates of each term and each break in attendance. The Asst. VP will enter the appropriate dates into the PowerFAIDS Administration POEs and Budgets module. The Associate Director of Financial Aid (Associate Director) will then review the academic calendar and confirm that the dates entered into the PowerFAIDS Administration POEs and Budgets module are accurate. An email will be sent from the Associate Director to the Asst. VP for record keeping and confirmation of the review. In addition, for a student who may be eligible for a post withdrawal disbursement, the Associate Director will calculate the amount to be disbursed and then the Asst. VP will confirm the amount to be disbursed at the time the disbursement is authorized. The College believes this two-step confirmation approach will reduce the likelihood of an error moving forward.
Finding 2023-001
Federal Program – Federal Pell Grant Program, Federal Direct Student Loan Program Federal Agency – U.S. Department of Education Pass-Through Entity – Not Applicable CFDA Number – 84.063, 84.268 Federal Award Year – June 30, 2023 Criteria: The Uniform Guidance requires recipients of federal awards to administer its federal programs with an adequate system of internal controls over applicable compliance requirements. In addition, when a recipient of Title IV grant or loan assistance withdraws from an institution during a payment period, Title IV regulations (34 CFR 668.22) require the College to determine, through a Return of Title IV Funds (R2T4) calculation, the amount of Title IV grant or loan assistance that the student earned as of the withdrawal date and return the unearned portion of the grant or loan to the Title IV programs as soon as possible but no later than 45 days after the withdrawal date. Condition/Context: The amount of Title IV aid to be refunded was not properly calculated for two out of four students tested with Return of Title IV calculations which resulted in the College returning more aid than necessary. In addition, one student, out of four students tested with R2T4 calculations, was inadvertently disbursed funds in excess of their amount earned after withdrawing from the College. This was the only student which received a post-withdrawal disbursement at the College for the 2023 fiscal year. Cause: The College did not properly calculate the number of days in a term by excluding the total amount of days in their spring break, which resulted in the incorrect unearned aid percentage to be used in all spring 2023 refund calculations. As soon as the improper calculation was brought to the attention of the College, all fourteen students for whom a Spring R2T4 calculation was performed, had their R2T4s recalculated. In addition, the full amount of the Title IV aid which was calculated as to be disbursed in one student's R2T4 calculation was disbursed, rather than just the portion earned for their time enrolled in the semester at the College. Effect: The College returned more aid than necessary based on the students’ percentage of completion in the spring 2023 semester. In addition, one student received more funds than they earned, and the College did not return the proper amount of Title IV funds to the Department of Education as a result of the student's withdrawal. Questioned Costs: The College returned $504 more in Federal Direct Loans and $100 more in Federal Pell Grants than necessary based on the inaccurate R2T4 calculations in the spring 2023 semester. $1,009 of Federal Direct Student Loans were disbursed post-withdrawal that were not earned by the student based on the students last attendance date at the College. Recommendation: The College should reevaluate their process around completing R2T4 calculations, specifically with post-withdrawal disbursements, to ensure only the amount of aid earned by a student gets disbursed. In addition, this process should involve a secondary level of review to ensure the days completed and total days in the semester are accurate based on the College’s academic calendar. View of Responsible Officials and Planned Corrective Action: Going forward, the Assistant Vice President of Financial Aid (Asst. VP) will review the academic year calendar and determine the start and end dates of each term and each break in attendance. The Asst. VP will enter the appropriate dates into the PowerFAIDS Administration POEs and Budgets module. The Associate Director of Financial Aid (Associate Director) will then review the academic calendar and confirm that the dates entered into the PowerFAIDS Administration POEs and Budgets module are accurate. An email will be sent from the Associate Director to the Asst. VP for record keeping and confirmation of the review. In addition, for a student who may be eligible for a post withdrawal disbursement, the Associate Director will calculate the amount to be disbursed and then the Asst. VP will confirm the amount to be disbursed at the time the disbursement is authorized. The College believes this two-step confirmation approach will reduce the likelihood of an error moving forward.
Finding 2023-001
Federal Program – Federal Pell Grant Program, Federal Direct Student Loan Program Federal Agency – U.S. Department of Education Pass-Through Entity – Not Applicable CFDA Number – 84.063, 84.268 Federal Award Year – June 30, 2023 Criteria: The Uniform Guidance requires recipients of federal awards to administer its federal programs with an adequate system of internal controls over applicable compliance requirements. In addition, when a recipient of Title IV grant or loan assistance withdraws from an institution during a payment period, Title IV regulations (34 CFR 668.22) require the College to determine, through a Return of Title IV Funds (R2T4) calculation, the amount of Title IV grant or loan assistance that the student earned as of the withdrawal date and return the unearned portion of the grant or loan to the Title IV programs as soon as possible but no later than 45 days after the withdrawal date. Condition/Context: The amount of Title IV aid to be refunded was not properly calculated for two out of four students tested with Return of Title IV calculations which resulted in the College returning more aid than necessary. In addition, one student, out of four students tested with R2T4 calculations, was inadvertently disbursed funds in excess of their amount earned after withdrawing from the College. This was the only student which received a post-withdrawal disbursement at the College for the 2023 fiscal year. Cause: The College did not properly calculate the number of days in a term by excluding the total amount of days in their spring break, which resulted in the incorrect unearned aid percentage to be used in all spring 2023 refund calculations. As soon as the improper calculation was brought to the attention of the College, all fourteen students for whom a Spring R2T4 calculation was performed, had their R2T4s recalculated. In addition, the full amount of the Title IV aid which was calculated as to be disbursed in one student's R2T4 calculation was disbursed, rather than just the portion earned for their time enrolled in the semester at the College. Effect: The College returned more aid than necessary based on the students’ percentage of completion in the spring 2023 semester. In addition, one student received more funds than they earned, and the College did not return the proper amount of Title IV funds to the Department of Education as a result of the student's withdrawal. Questioned Costs: The College returned $504 more in Federal Direct Loans and $100 more in Federal Pell Grants than necessary based on the inaccurate R2T4 calculations in the spring 2023 semester. $1,009 of Federal Direct Student Loans were disbursed post-withdrawal that were not earned by the student based on the students last attendance date at the College. Recommendation: The College should reevaluate their process around completing R2T4 calculations, specifically with post-withdrawal disbursements, to ensure only the amount of aid earned by a student gets disbursed. In addition, this process should involve a secondary level of review to ensure the days completed and total days in the semester are accurate based on the College’s academic calendar. View of Responsible Officials and Planned Corrective Action: Going forward, the Assistant Vice President of Financial Aid (Asst. VP) will review the academic year calendar and determine the start and end dates of each term and each break in attendance. The Asst. VP will enter the appropriate dates into the PowerFAIDS Administration POEs and Budgets module. The Associate Director of Financial Aid (Associate Director) will then review the academic calendar and confirm that the dates entered into the PowerFAIDS Administration POEs and Budgets module are accurate. An email will be sent from the Associate Director to the Asst. VP for record keeping and confirmation of the review. In addition, for a student who may be eligible for a post withdrawal disbursement, the Associate Director will calculate the amount to be disbursed and then the Asst. VP will confirm the amount to be disbursed at the time the disbursement is authorized. The College believes this two-step confirmation approach will reduce the likelihood of an error moving forward.