Audit 178652

FY End
2022-06-30
Total Expended
$24.71M
Findings
10
Programs
19
Organization: The Shaw University, Inc. (NC)
Year: 2022 Accepted: 2023-03-28
Auditor: Bdo USA LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
195003 2022-001 - - LN
195004 2022-001 - - LN
195005 2022-002 - - L
195006 2022-002 - - L
195007 2022-002 - - L
771445 2022-001 - - LN
771446 2022-001 - - LN
771447 2022-002 - - L
771448 2022-002 - - L
771449 2022-002 - - L

Contacts

Name Title Type
J8FNZF53QBD3 David Byrd Auditee
9195468237 Michael Dannar Auditor
No contacts on file

Notes to SEFA

Title: Contingency 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 and State Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The University has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The grant revenue amounts received are subject to audit and adjustment. If any expenditures are disallowed by the grantor agencies as a result of such an audit, any claim for reimbursement to the grantor agencies would become a liability of the University. In the opinion of management, and with the exception of certain findings presented in the accompanying schedule of findings and questioned costs, all grant expenditures are in compliance with the terms of the grant agreements and applicable federal and state laws and regulations.
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 and State Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The University 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 and state awards (the Schedule) includes the federal and state award activity of The Shaw University, Inc. (the University) under programs of the federal and state governments for the year ended June 30, 2022. 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) and the North Carolina State Education Assistance Authority Guide (State 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 financial position, changes in net assets or cash flows of the University.
Title: Federal Direct Student Loans 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 and State Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The University has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The University is responsible only for the performance of certain administrative duties with respect to its Federal Direct Student Loan programs and, accordingly, these loans are not included in the Universitys financial statements. It is not practicable to determine the balance of loans outstanding to students and former students of the University under these programs as of June 30, 2022. Loan advances during the fiscal year ended June 30, 2022 have been reflected in the Schedule.
Title: Federal Perkins Loan Program 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 and State Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The University has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Federal Perkins Loan Program (the FPL Program) is partially administered by a third-party service provider. During fiscal year 2014, the University began close out and liquidation procedures related to its FPL Program. As of June 30, 2022, approximately $3,498,456 of student loans outstanding had been assigned and accepted by the U.S Department of Education. No new loans were advanced under the FPL Program during the year ended June 30, 2022. The University is in the process of liquidating the FPL Program and plans to complete the process during fiscal year 2023.

Finding Details

Program Information: Federal Pell Grant Program (ALN: 84.063) and Federal Direct Loan Program (ALN: 84.268) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): N. Special Tests and Provisions ? Borrower Data Transmission and Reconciliation ? Federal regulations require that the University submit Federal Direct Loan Program (?Direct Loan?) disbursement records for students to the Common Origination and Disbursement (?COD?) in an accurate and timely manner (no earlier than 7 days before and no later than 15 days after disbursement of funds). L. Reporting - Additionally, all schools receiving Federal Pell Grant Program (?Pell?) funds must submit Pell payment data to the through the COD System. Institutions must report student payment data within 15 calendar days after the school makes a payment or becomes aware of the need to make an adjustment to previously reported student payment data or expected student payment data. Condition: For certain students, the University did not submit disbursement information for Direct Loan and Pell GRANT awards through the COD system within the required timeframes. Additionally, while the University submitted certain disbursement information within the required timeframe, the disbursement date submitted was not accurate, as it did not reflect the actual date in which Direct Loan and/or Pell grant funds were credited to certain students? account. Cause: Administrative oversight with respect to accurate and timely reporting of federal awards. Effect or Potential Effect: The University is not in compliance with COD reporting requirements. Questioned Costs: None. Context: We noted the following exceptions: ? For 18 of 40 students selected for Direct Loan disbursement testing, the University did not report an accurate disbursement date within the COD system. ? For 5 of 40 students selected for Direct Loan disbursement testing, the University did not report accurate disbursement information to the COD within the required time frame. ? For 7 of 25 students selected for Pell grant disbursement testing, the University did not report an accurate disbursement date within the COD system. ? For 1 of 25 students selected for Pell grant disbursement testing, the University did not report accurate disbursement information to the COD within the required time frame. Repeat Finding: No similar findings noted in the prior year. Recommendation: We recommend that the University ensure that Direct Loan and Pell grant disbursement dates are entered into the COD website no earlier than 7 days before and no later than 15 days after disbursement as required by federal regulations.
Program Information: Federal Pell Grant Program (ALN: 84.063) and Federal Direct Loan Program (ALN: 84.268) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): N. Special Tests and Provisions ? Borrower Data Transmission and Reconciliation ? Federal regulations require that the University submit Federal Direct Loan Program (?Direct Loan?) disbursement records for students to the Common Origination and Disbursement (?COD?) in an accurate and timely manner (no earlier than 7 days before and no later than 15 days after disbursement of funds). L. Reporting - Additionally, all schools receiving Federal Pell Grant Program (?Pell?) funds must submit Pell payment data to the through the COD System. Institutions must report student payment data within 15 calendar days after the school makes a payment or becomes aware of the need to make an adjustment to previously reported student payment data or expected student payment data. Condition: For certain students, the University did not submit disbursement information for Direct Loan and Pell GRANT awards through the COD system within the required timeframes. Additionally, while the University submitted certain disbursement information within the required timeframe, the disbursement date submitted was not accurate, as it did not reflect the actual date in which Direct Loan and/or Pell grant funds were credited to certain students? account. Cause: Administrative oversight with respect to accurate and timely reporting of federal awards. Effect or Potential Effect: The University is not in compliance with COD reporting requirements. Questioned Costs: None. Context: We noted the following exceptions: ? For 18 of 40 students selected for Direct Loan disbursement testing, the University did not report an accurate disbursement date within the COD system. ? For 5 of 40 students selected for Direct Loan disbursement testing, the University did not report accurate disbursement information to the COD within the required time frame. ? For 7 of 25 students selected for Pell grant disbursement testing, the University did not report an accurate disbursement date within the COD system. ? For 1 of 25 students selected for Pell grant disbursement testing, the University did not report accurate disbursement information to the COD within the required time frame. Repeat Finding: No similar findings noted in the prior year. Recommendation: We recommend that the University ensure that Direct Loan and Pell grant disbursement dates are entered into the COD website no earlier than 7 days before and no later than 15 days after disbursement as required by federal regulations.
Program Information: COVID-19 ? Education Stabilization Fund (?ESF?) (ALN: 84.425E, 84.425F and 84.425J) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): L. Reporting ? ESF Special Reporting ? Quarterly Public Reporting ? The University is required to publicly post certain information for the Student Aid Portion award on the University?s website in a conspicuous location. Institutions must post certain key line items identified by the ED as critical information directly to their website each calendar quarter, and reports must be updated no later than 10 days after the end of each calendar quarter. Condition: Certain key line items were not correctly reported in the University?s quarterly reports. Additionally, the University did not prepare quarterly reports using the appropriate reporting form, thus certain information could not be reconciled to underlying documentation. Cause: Administrative oversight with respect to ESF quarterly public reporting requirements. Effect or Potential Effect: The University is not in compliance with ESF reporting requirements. Questioned Costs: None. Context: For 2 of 2 quarters selected for testing, certain required key line items for the Student Aid Portion awards reported on the University?s website were not correctly reported. Additionally, the University did not prepare quarterly reports using the appropriate reporting form, thus certain information could not be reconciled to underlying documentation. Identification of Repeat Finding: No similar findings noted in the prior year. Recommendation: We recommend the University enhance its policies and procedures over ESF quarterly reporting to ensure that all required information is reported accurately and in accordance with federal regulations.
Program Information: COVID-19 ? Education Stabilization Fund (?ESF?) (ALN: 84.425E, 84.425F and 84.425J) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): L. Reporting ? ESF Special Reporting ? Quarterly Public Reporting ? The University is required to publicly post certain information for the Student Aid Portion award on the University?s website in a conspicuous location. Institutions must post certain key line items identified by the ED as critical information directly to their website each calendar quarter, and reports must be updated no later than 10 days after the end of each calendar quarter. Condition: Certain key line items were not correctly reported in the University?s quarterly reports. Additionally, the University did not prepare quarterly reports using the appropriate reporting form, thus certain information could not be reconciled to underlying documentation. Cause: Administrative oversight with respect to ESF quarterly public reporting requirements. Effect or Potential Effect: The University is not in compliance with ESF reporting requirements. Questioned Costs: None. Context: For 2 of 2 quarters selected for testing, certain required key line items for the Student Aid Portion awards reported on the University?s website were not correctly reported. Additionally, the University did not prepare quarterly reports using the appropriate reporting form, thus certain information could not be reconciled to underlying documentation. Identification of Repeat Finding: No similar findings noted in the prior year. Recommendation: We recommend the University enhance its policies and procedures over ESF quarterly reporting to ensure that all required information is reported accurately and in accordance with federal regulations.
Program Information: COVID-19 ? Education Stabilization Fund (?ESF?) (ALN: 84.425E, 84.425F and 84.425J) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): L. Reporting ? ESF Special Reporting ? Quarterly Public Reporting ? The University is required to publicly post certain information for the Student Aid Portion award on the University?s website in a conspicuous location. Institutions must post certain key line items identified by the ED as critical information directly to their website each calendar quarter, and reports must be updated no later than 10 days after the end of each calendar quarter. Condition: Certain key line items were not correctly reported in the University?s quarterly reports. Additionally, the University did not prepare quarterly reports using the appropriate reporting form, thus certain information could not be reconciled to underlying documentation. Cause: Administrative oversight with respect to ESF quarterly public reporting requirements. Effect or Potential Effect: The University is not in compliance with ESF reporting requirements. Questioned Costs: None. Context: For 2 of 2 quarters selected for testing, certain required key line items for the Student Aid Portion awards reported on the University?s website were not correctly reported. Additionally, the University did not prepare quarterly reports using the appropriate reporting form, thus certain information could not be reconciled to underlying documentation. Identification of Repeat Finding: No similar findings noted in the prior year. Recommendation: We recommend the University enhance its policies and procedures over ESF quarterly reporting to ensure that all required information is reported accurately and in accordance with federal regulations.
Program Information: Federal Pell Grant Program (ALN: 84.063) and Federal Direct Loan Program (ALN: 84.268) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): N. Special Tests and Provisions ? Borrower Data Transmission and Reconciliation ? Federal regulations require that the University submit Federal Direct Loan Program (?Direct Loan?) disbursement records for students to the Common Origination and Disbursement (?COD?) in an accurate and timely manner (no earlier than 7 days before and no later than 15 days after disbursement of funds). L. Reporting - Additionally, all schools receiving Federal Pell Grant Program (?Pell?) funds must submit Pell payment data to the through the COD System. Institutions must report student payment data within 15 calendar days after the school makes a payment or becomes aware of the need to make an adjustment to previously reported student payment data or expected student payment data. Condition: For certain students, the University did not submit disbursement information for Direct Loan and Pell GRANT awards through the COD system within the required timeframes. Additionally, while the University submitted certain disbursement information within the required timeframe, the disbursement date submitted was not accurate, as it did not reflect the actual date in which Direct Loan and/or Pell grant funds were credited to certain students? account. Cause: Administrative oversight with respect to accurate and timely reporting of federal awards. Effect or Potential Effect: The University is not in compliance with COD reporting requirements. Questioned Costs: None. Context: We noted the following exceptions: ? For 18 of 40 students selected for Direct Loan disbursement testing, the University did not report an accurate disbursement date within the COD system. ? For 5 of 40 students selected for Direct Loan disbursement testing, the University did not report accurate disbursement information to the COD within the required time frame. ? For 7 of 25 students selected for Pell grant disbursement testing, the University did not report an accurate disbursement date within the COD system. ? For 1 of 25 students selected for Pell grant disbursement testing, the University did not report accurate disbursement information to the COD within the required time frame. Repeat Finding: No similar findings noted in the prior year. Recommendation: We recommend that the University ensure that Direct Loan and Pell grant disbursement dates are entered into the COD website no earlier than 7 days before and no later than 15 days after disbursement as required by federal regulations.
Program Information: Federal Pell Grant Program (ALN: 84.063) and Federal Direct Loan Program (ALN: 84.268) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): N. Special Tests and Provisions ? Borrower Data Transmission and Reconciliation ? Federal regulations require that the University submit Federal Direct Loan Program (?Direct Loan?) disbursement records for students to the Common Origination and Disbursement (?COD?) in an accurate and timely manner (no earlier than 7 days before and no later than 15 days after disbursement of funds). L. Reporting - Additionally, all schools receiving Federal Pell Grant Program (?Pell?) funds must submit Pell payment data to the through the COD System. Institutions must report student payment data within 15 calendar days after the school makes a payment or becomes aware of the need to make an adjustment to previously reported student payment data or expected student payment data. Condition: For certain students, the University did not submit disbursement information for Direct Loan and Pell GRANT awards through the COD system within the required timeframes. Additionally, while the University submitted certain disbursement information within the required timeframe, the disbursement date submitted was not accurate, as it did not reflect the actual date in which Direct Loan and/or Pell grant funds were credited to certain students? account. Cause: Administrative oversight with respect to accurate and timely reporting of federal awards. Effect or Potential Effect: The University is not in compliance with COD reporting requirements. Questioned Costs: None. Context: We noted the following exceptions: ? For 18 of 40 students selected for Direct Loan disbursement testing, the University did not report an accurate disbursement date within the COD system. ? For 5 of 40 students selected for Direct Loan disbursement testing, the University did not report accurate disbursement information to the COD within the required time frame. ? For 7 of 25 students selected for Pell grant disbursement testing, the University did not report an accurate disbursement date within the COD system. ? For 1 of 25 students selected for Pell grant disbursement testing, the University did not report accurate disbursement information to the COD within the required time frame. Repeat Finding: No similar findings noted in the prior year. Recommendation: We recommend that the University ensure that Direct Loan and Pell grant disbursement dates are entered into the COD website no earlier than 7 days before and no later than 15 days after disbursement as required by federal regulations.
Program Information: COVID-19 ? Education Stabilization Fund (?ESF?) (ALN: 84.425E, 84.425F and 84.425J) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): L. Reporting ? ESF Special Reporting ? Quarterly Public Reporting ? The University is required to publicly post certain information for the Student Aid Portion award on the University?s website in a conspicuous location. Institutions must post certain key line items identified by the ED as critical information directly to their website each calendar quarter, and reports must be updated no later than 10 days after the end of each calendar quarter. Condition: Certain key line items were not correctly reported in the University?s quarterly reports. Additionally, the University did not prepare quarterly reports using the appropriate reporting form, thus certain information could not be reconciled to underlying documentation. Cause: Administrative oversight with respect to ESF quarterly public reporting requirements. Effect or Potential Effect: The University is not in compliance with ESF reporting requirements. Questioned Costs: None. Context: For 2 of 2 quarters selected for testing, certain required key line items for the Student Aid Portion awards reported on the University?s website were not correctly reported. Additionally, the University did not prepare quarterly reports using the appropriate reporting form, thus certain information could not be reconciled to underlying documentation. Identification of Repeat Finding: No similar findings noted in the prior year. Recommendation: We recommend the University enhance its policies and procedures over ESF quarterly reporting to ensure that all required information is reported accurately and in accordance with federal regulations.
Program Information: COVID-19 ? Education Stabilization Fund (?ESF?) (ALN: 84.425E, 84.425F and 84.425J) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): L. Reporting ? ESF Special Reporting ? Quarterly Public Reporting ? The University is required to publicly post certain information for the Student Aid Portion award on the University?s website in a conspicuous location. Institutions must post certain key line items identified by the ED as critical information directly to their website each calendar quarter, and reports must be updated no later than 10 days after the end of each calendar quarter. Condition: Certain key line items were not correctly reported in the University?s quarterly reports. Additionally, the University did not prepare quarterly reports using the appropriate reporting form, thus certain information could not be reconciled to underlying documentation. Cause: Administrative oversight with respect to ESF quarterly public reporting requirements. Effect or Potential Effect: The University is not in compliance with ESF reporting requirements. Questioned Costs: None. Context: For 2 of 2 quarters selected for testing, certain required key line items for the Student Aid Portion awards reported on the University?s website were not correctly reported. Additionally, the University did not prepare quarterly reports using the appropriate reporting form, thus certain information could not be reconciled to underlying documentation. Identification of Repeat Finding: No similar findings noted in the prior year. Recommendation: We recommend the University enhance its policies and procedures over ESF quarterly reporting to ensure that all required information is reported accurately and in accordance with federal regulations.
Program Information: COVID-19 ? Education Stabilization Fund (?ESF?) (ALN: 84.425E, 84.425F and 84.425J) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): L. Reporting ? ESF Special Reporting ? Quarterly Public Reporting ? The University is required to publicly post certain information for the Student Aid Portion award on the University?s website in a conspicuous location. Institutions must post certain key line items identified by the ED as critical information directly to their website each calendar quarter, and reports must be updated no later than 10 days after the end of each calendar quarter. Condition: Certain key line items were not correctly reported in the University?s quarterly reports. Additionally, the University did not prepare quarterly reports using the appropriate reporting form, thus certain information could not be reconciled to underlying documentation. Cause: Administrative oversight with respect to ESF quarterly public reporting requirements. Effect or Potential Effect: The University is not in compliance with ESF reporting requirements. Questioned Costs: None. Context: For 2 of 2 quarters selected for testing, certain required key line items for the Student Aid Portion awards reported on the University?s website were not correctly reported. Additionally, the University did not prepare quarterly reports using the appropriate reporting form, thus certain information could not be reconciled to underlying documentation. Identification of Repeat Finding: No similar findings noted in the prior year. Recommendation: We recommend the University enhance its policies and procedures over ESF quarterly reporting to ensure that all required information is reported accurately and in accordance with federal regulations.