FAC Explorer

Audit 1692

FY End
2023-06-30
Total Expended
$12.74M
Findings
16
Programs
12
Organization: John Brown University and Affiliates (AR)
Year: 2023 Accepted: 2023-10-30
Auditor: Capincrouse LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
907 2023-001 Significant Deficiency - N
908 2023-001 Significant Deficiency - N
909 2023-002 - - N
910 2023-002 - - N
911 2023-002 - - N
912 2023-002 - - N
913 2023-002 - - N
914 2023-002 - - N
577349 2023-001 Significant Deficiency - N
577350 2023-001 Significant Deficiency - N
577351 2023-002 - - N
577352 2023-002 - - N
577353 2023-002 - - N
577354 2023-002 - - N
577355 2023-002 - - N
577356 2023-002 - - N

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $9.17M Yes 2
84.063 Federal Pell Grant Program $2.06M Yes 2
84.038 Federal Perkins Loan Program $496,194 Yes 1
84.042 Trio_student Support Services $272,066 - 0
84.425 Covid-19 Education Stabilization Fund American Rescue Plan--Elementary and Secondary School Emergencuy Relief $271,191 - 0
84.033 Federal Work-Study Program $149,454 Yes 1
84.425 Covid-19 Education Stabilization Fund Governor's Emergency Education Relief Fund $143,136 - 0
84.007 Federal Supplemental Educational Opportunity Grants $107,622 Yes 1
97.008 Non-Profit Security Program $18,149 - 0
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $18,104 Yes 1
93.859 Biomedical Research and Research Training $17,309 - 0
43.008 National Aeronautics and Space Administration Education $806 - 0

Contacts

Name Title Type
E8JMLPBES6E6 David Burney Auditee
4795247427 Fran Brown, CPA Auditor
No contacts on file

Notes to SEFA

Title: RELATIONSHIP TO THE CONSOLIDATED FINANCIAL STATEMENTS Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of John Brown University and Affiliates (the University) under programs of the federal government for the year ended June 30, 2023. The information in the schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of, the basic consolidated financial statements. Expenditures 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. Negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. If the University is required to match certain federal assistance, as defined by the grant agreements, no such matching has been included as expenditures in the schedule. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate See the Notes to the SEFA for chart/table
Title: SUBRECIPIENTS, NON-CASH ASSISTANCE, FEDERAL INSURANCE, LOANS, AND LOAN GUARANTEES Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of John Brown University and Affiliates (the University) under programs of the federal government for the year ended June 30, 2023. The information in the schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of, the basic consolidated financial statements. Expenditures 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. Negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. If the University is required to match certain federal assistance, as defined by the grant agreements, no such matching has been included as expenditures in the schedule. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate The University did not provide any federal funds to subrecipients nor did they receive any federal non-cash assistance, insurance, loans, or loan guarantees.
Title: FEDERAL PERKINS LOAN PROGRAM Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of John Brown University and Affiliates (the University) under programs of the federal government for the year ended June 30, 2023. The information in the schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of, the basic consolidated financial statements. Expenditures 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. Negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. If the University is required to match certain federal assistance, as defined by the grant agreements, no such matching has been included as expenditures in the schedule. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate See the Notes to the SEFA for chart/table

Finding Details

Finding 2023-001
Inaccurate and Untimely Return of Title IV Funds (R2T4) Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268 and 84.063 Federal Award Identification #: 2022-2023 Financial Aid Year Condition: When students withdrew either officially or unofficially, the University did not always return unearned Title IV aid timely or accurately. Criteria: 34 CFR 668.22 Questioned Costs: $44 Context: 3 of 10 withdrawals tested were not returned timely totaling $7,676 and ranging from 6 to 178 days late. Of those, 1 student did not have the correct amount returned, resulting in a $44 under-return of federal direct loans. Additionally, out of the 10 withdraws tested, 1 student had a calculation error in the R2T4 form and had $147 more in federal direct loans returned than required. This was due to an inaccurate tuition amount used in the calculation. Cause: This was an oversight by the University. Effect: Incorrect amounts of federal funding were returned, and funds were not returned timely. Identification as repeat finding, if applicable: n/a Recommendation: We recommend an individual in financial aid with the appropriate level of experience periodically review student's R2T4 calculations and returns to help ensure that internal controls over such process can operate effectively and achieve compliance. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2023-001
Inaccurate and Untimely Return of Title IV Funds (R2T4) Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268 and 84.063 Federal Award Identification #: 2022-2023 Financial Aid Year Condition: When students withdrew either officially or unofficially, the University did not always return unearned Title IV aid timely or accurately. Criteria: 34 CFR 668.22 Questioned Costs: $44 Context: 3 of 10 withdrawals tested were not returned timely totaling $7,676 and ranging from 6 to 178 days late. Of those, 1 student did not have the correct amount returned, resulting in a $44 under-return of federal direct loans. Additionally, out of the 10 withdraws tested, 1 student had a calculation error in the R2T4 form and had $147 more in federal direct loans returned than required. This was due to an inaccurate tuition amount used in the calculation. Cause: This was an oversight by the University. Effect: Incorrect amounts of federal funding were returned, and funds were not returned timely. Identification as repeat finding, if applicable: n/a Recommendation: We recommend an individual in financial aid with the appropriate level of experience periodically review student's R2T4 calculations and returns to help ensure that internal controls over such process can operate effectively and achieve compliance. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2023-002
Gramm-Leach-Bliley Act (GLBA) Compliance Other Matter DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063, 84.007, 84.033, 84.038 and 84.379; Student Financial Assistance Cluster Federal Award Identification #: 2022-2023 Financial Aid Year Condition: The University has gaps in two areas with the updated requirements of GLBA. Criteria: 16 CFR 314.4 Questioned Costs: $0 Context: The University has not implemented multi-factor authentication on one system containing non-financial personally identifiable information (PII). Additionally, the written annual report to the board does not include all the required areas based on the updated regulations. Cause: The University has made significant progress on GLBA and has a couple of components to be in full compliance with the updated requirements of GLBA. University personnel were unaware of the system’s ability to support MFA. Effect: The University may have unintended exposure of non-financial student information to security risks. Identification as repeat finding, if applicable: n/a Recommendation: We recommend the University implement the remaining components of the revised regulations. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2023-002
Gramm-Leach-Bliley Act (GLBA) Compliance Other Matter DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063, 84.007, 84.033, 84.038 and 84.379; Student Financial Assistance Cluster Federal Award Identification #: 2022-2023 Financial Aid Year Condition: The University has gaps in two areas with the updated requirements of GLBA. Criteria: 16 CFR 314.4 Questioned Costs: $0 Context: The University has not implemented multi-factor authentication on one system containing non-financial personally identifiable information (PII). Additionally, the written annual report to the board does not include all the required areas based on the updated regulations. Cause: The University has made significant progress on GLBA and has a couple of components to be in full compliance with the updated requirements of GLBA. University personnel were unaware of the system’s ability to support MFA. Effect: The University may have unintended exposure of non-financial student information to security risks. Identification as repeat finding, if applicable: n/a Recommendation: We recommend the University implement the remaining components of the revised regulations. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2023-002
Gramm-Leach-Bliley Act (GLBA) Compliance Other Matter DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063, 84.007, 84.033, 84.038 and 84.379; Student Financial Assistance Cluster Federal Award Identification #: 2022-2023 Financial Aid Year Condition: The University has gaps in two areas with the updated requirements of GLBA. Criteria: 16 CFR 314.4 Questioned Costs: $0 Context: The University has not implemented multi-factor authentication on one system containing non-financial personally identifiable information (PII). Additionally, the written annual report to the board does not include all the required areas based on the updated regulations. Cause: The University has made significant progress on GLBA and has a couple of components to be in full compliance with the updated requirements of GLBA. University personnel were unaware of the system’s ability to support MFA. Effect: The University may have unintended exposure of non-financial student information to security risks. Identification as repeat finding, if applicable: n/a Recommendation: We recommend the University implement the remaining components of the revised regulations. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2023-002
Gramm-Leach-Bliley Act (GLBA) Compliance Other Matter DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063, 84.007, 84.033, 84.038 and 84.379; Student Financial Assistance Cluster Federal Award Identification #: 2022-2023 Financial Aid Year Condition: The University has gaps in two areas with the updated requirements of GLBA. Criteria: 16 CFR 314.4 Questioned Costs: $0 Context: The University has not implemented multi-factor authentication on one system containing non-financial personally identifiable information (PII). Additionally, the written annual report to the board does not include all the required areas based on the updated regulations. Cause: The University has made significant progress on GLBA and has a couple of components to be in full compliance with the updated requirements of GLBA. University personnel were unaware of the system’s ability to support MFA. Effect: The University may have unintended exposure of non-financial student information to security risks. Identification as repeat finding, if applicable: n/a Recommendation: We recommend the University implement the remaining components of the revised regulations. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2023-002
Gramm-Leach-Bliley Act (GLBA) Compliance Other Matter DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063, 84.007, 84.033, 84.038 and 84.379; Student Financial Assistance Cluster Federal Award Identification #: 2022-2023 Financial Aid Year Condition: The University has gaps in two areas with the updated requirements of GLBA. Criteria: 16 CFR 314.4 Questioned Costs: $0 Context: The University has not implemented multi-factor authentication on one system containing non-financial personally identifiable information (PII). Additionally, the written annual report to the board does not include all the required areas based on the updated regulations. Cause: The University has made significant progress on GLBA and has a couple of components to be in full compliance with the updated requirements of GLBA. University personnel were unaware of the system’s ability to support MFA. Effect: The University may have unintended exposure of non-financial student information to security risks. Identification as repeat finding, if applicable: n/a Recommendation: We recommend the University implement the remaining components of the revised regulations. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2023-002
Gramm-Leach-Bliley Act (GLBA) Compliance Other Matter DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063, 84.007, 84.033, 84.038 and 84.379; Student Financial Assistance Cluster Federal Award Identification #: 2022-2023 Financial Aid Year Condition: The University has gaps in two areas with the updated requirements of GLBA. Criteria: 16 CFR 314.4 Questioned Costs: $0 Context: The University has not implemented multi-factor authentication on one system containing non-financial personally identifiable information (PII). Additionally, the written annual report to the board does not include all the required areas based on the updated regulations. Cause: The University has made significant progress on GLBA and has a couple of components to be in full compliance with the updated requirements of GLBA. University personnel were unaware of the system’s ability to support MFA. Effect: The University may have unintended exposure of non-financial student information to security risks. Identification as repeat finding, if applicable: n/a Recommendation: We recommend the University implement the remaining components of the revised regulations. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2023-001
Inaccurate and Untimely Return of Title IV Funds (R2T4) Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268 and 84.063 Federal Award Identification #: 2022-2023 Financial Aid Year Condition: When students withdrew either officially or unofficially, the University did not always return unearned Title IV aid timely or accurately. Criteria: 34 CFR 668.22 Questioned Costs: $44 Context: 3 of 10 withdrawals tested were not returned timely totaling $7,676 and ranging from 6 to 178 days late. Of those, 1 student did not have the correct amount returned, resulting in a $44 under-return of federal direct loans. Additionally, out of the 10 withdraws tested, 1 student had a calculation error in the R2T4 form and had $147 more in federal direct loans returned than required. This was due to an inaccurate tuition amount used in the calculation. Cause: This was an oversight by the University. Effect: Incorrect amounts of federal funding were returned, and funds were not returned timely. Identification as repeat finding, if applicable: n/a Recommendation: We recommend an individual in financial aid with the appropriate level of experience periodically review student's R2T4 calculations and returns to help ensure that internal controls over such process can operate effectively and achieve compliance. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2023-001
Inaccurate and Untimely Return of Title IV Funds (R2T4) Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268 and 84.063 Federal Award Identification #: 2022-2023 Financial Aid Year Condition: When students withdrew either officially or unofficially, the University did not always return unearned Title IV aid timely or accurately. Criteria: 34 CFR 668.22 Questioned Costs: $44 Context: 3 of 10 withdrawals tested were not returned timely totaling $7,676 and ranging from 6 to 178 days late. Of those, 1 student did not have the correct amount returned, resulting in a $44 under-return of federal direct loans. Additionally, out of the 10 withdraws tested, 1 student had a calculation error in the R2T4 form and had $147 more in federal direct loans returned than required. This was due to an inaccurate tuition amount used in the calculation. Cause: This was an oversight by the University. Effect: Incorrect amounts of federal funding were returned, and funds were not returned timely. Identification as repeat finding, if applicable: n/a Recommendation: We recommend an individual in financial aid with the appropriate level of experience periodically review student's R2T4 calculations and returns to help ensure that internal controls over such process can operate effectively and achieve compliance. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2023-002
Gramm-Leach-Bliley Act (GLBA) Compliance Other Matter DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063, 84.007, 84.033, 84.038 and 84.379; Student Financial Assistance Cluster Federal Award Identification #: 2022-2023 Financial Aid Year Condition: The University has gaps in two areas with the updated requirements of GLBA. Criteria: 16 CFR 314.4 Questioned Costs: $0 Context: The University has not implemented multi-factor authentication on one system containing non-financial personally identifiable information (PII). Additionally, the written annual report to the board does not include all the required areas based on the updated regulations. Cause: The University has made significant progress on GLBA and has a couple of components to be in full compliance with the updated requirements of GLBA. University personnel were unaware of the system’s ability to support MFA. Effect: The University may have unintended exposure of non-financial student information to security risks. Identification as repeat finding, if applicable: n/a Recommendation: We recommend the University implement the remaining components of the revised regulations. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2023-002
Gramm-Leach-Bliley Act (GLBA) Compliance Other Matter DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063, 84.007, 84.033, 84.038 and 84.379; Student Financial Assistance Cluster Federal Award Identification #: 2022-2023 Financial Aid Year Condition: The University has gaps in two areas with the updated requirements of GLBA. Criteria: 16 CFR 314.4 Questioned Costs: $0 Context: The University has not implemented multi-factor authentication on one system containing non-financial personally identifiable information (PII). Additionally, the written annual report to the board does not include all the required areas based on the updated regulations. Cause: The University has made significant progress on GLBA and has a couple of components to be in full compliance with the updated requirements of GLBA. University personnel were unaware of the system’s ability to support MFA. Effect: The University may have unintended exposure of non-financial student information to security risks. Identification as repeat finding, if applicable: n/a Recommendation: We recommend the University implement the remaining components of the revised regulations. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2023-002
Gramm-Leach-Bliley Act (GLBA) Compliance Other Matter DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063, 84.007, 84.033, 84.038 and 84.379; Student Financial Assistance Cluster Federal Award Identification #: 2022-2023 Financial Aid Year Condition: The University has gaps in two areas with the updated requirements of GLBA. Criteria: 16 CFR 314.4 Questioned Costs: $0 Context: The University has not implemented multi-factor authentication on one system containing non-financial personally identifiable information (PII). Additionally, the written annual report to the board does not include all the required areas based on the updated regulations. Cause: The University has made significant progress on GLBA and has a couple of components to be in full compliance with the updated requirements of GLBA. University personnel were unaware of the system’s ability to support MFA. Effect: The University may have unintended exposure of non-financial student information to security risks. Identification as repeat finding, if applicable: n/a Recommendation: We recommend the University implement the remaining components of the revised regulations. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2023-002
Gramm-Leach-Bliley Act (GLBA) Compliance Other Matter DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063, 84.007, 84.033, 84.038 and 84.379; Student Financial Assistance Cluster Federal Award Identification #: 2022-2023 Financial Aid Year Condition: The University has gaps in two areas with the updated requirements of GLBA. Criteria: 16 CFR 314.4 Questioned Costs: $0 Context: The University has not implemented multi-factor authentication on one system containing non-financial personally identifiable information (PII). Additionally, the written annual report to the board does not include all the required areas based on the updated regulations. Cause: The University has made significant progress on GLBA and has a couple of components to be in full compliance with the updated requirements of GLBA. University personnel were unaware of the system’s ability to support MFA. Effect: The University may have unintended exposure of non-financial student information to security risks. Identification as repeat finding, if applicable: n/a Recommendation: We recommend the University implement the remaining components of the revised regulations. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2023-002
Gramm-Leach-Bliley Act (GLBA) Compliance Other Matter DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063, 84.007, 84.033, 84.038 and 84.379; Student Financial Assistance Cluster Federal Award Identification #: 2022-2023 Financial Aid Year Condition: The University has gaps in two areas with the updated requirements of GLBA. Criteria: 16 CFR 314.4 Questioned Costs: $0 Context: The University has not implemented multi-factor authentication on one system containing non-financial personally identifiable information (PII). Additionally, the written annual report to the board does not include all the required areas based on the updated regulations. Cause: The University has made significant progress on GLBA and has a couple of components to be in full compliance with the updated requirements of GLBA. University personnel were unaware of the system’s ability to support MFA. Effect: The University may have unintended exposure of non-financial student information to security risks. Identification as repeat finding, if applicable: n/a Recommendation: We recommend the University implement the remaining components of the revised regulations. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2023-002
Gramm-Leach-Bliley Act (GLBA) Compliance Other Matter DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063, 84.007, 84.033, 84.038 and 84.379; Student Financial Assistance Cluster Federal Award Identification #: 2022-2023 Financial Aid Year Condition: The University has gaps in two areas with the updated requirements of GLBA. Criteria: 16 CFR 314.4 Questioned Costs: $0 Context: The University has not implemented multi-factor authentication on one system containing non-financial personally identifiable information (PII). Additionally, the written annual report to the board does not include all the required areas based on the updated regulations. Cause: The University has made significant progress on GLBA and has a couple of components to be in full compliance with the updated requirements of GLBA. University personnel were unaware of the system’s ability to support MFA. Effect: The University may have unintended exposure of non-financial student information to security risks. Identification as repeat finding, if applicable: n/a Recommendation: We recommend the University implement the remaining components of the revised regulations. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.