FAC Explorer

Audit 18257

FY End
2022-06-30
Total Expended
$1.32M
Findings
10
Programs
5
Organization: Manna University (NC)
Year: 2022 Accepted: 2023-03-21
Auditor: Capincrouse LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
23049 2022-003 Significant Deficiency - N
23050 2022-004 - Yes N
23051 2022-003 Significant Deficiency - N
23052 2022-004 - Yes N
23053 2022-005 - Yes E
599491 2022-003 Significant Deficiency - N
599492 2022-004 - Yes N
599493 2022-003 Significant Deficiency - N
599494 2022-004 - Yes N
599495 2022-005 - Yes E

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $446,858 Yes 2
84.425 Covid-19 Education Stabilization Fund Heerf - Fund for the Improvement of Postsecondary Education Formula Grant $379,936 - 0
84.063 Federal Pell Grant Program $364,523 Yes 3
84.425 Covid-19 Education Stabilization Fund Heerf - Student Aid Portion $78,833 - 0
84.425 Covid-19 Education Stabilization Fund Heerf - Institutional Portion $54,175 - 0

Contacts

Name Title Type
F4C8C9NAKGP6 Ron McBride Auditee
9102212224 Dan Campbell, CPA Auditor
No contacts on file

Notes to SEFA

Title: RELATIONSHIP TO FINANCIAL STATEMENTS Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Manna University (the University) under programs of the federal government for the year ending June 30, 2022. 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 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 table in SEFA Note 3.
Title: SUBRECIPIENTS, NON-CASH ASSISTANCE, FEDERAL INSURANCE, LOANS, AND LOAN GUAR Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Manna University (the University) under programs of the federal government for the year ending June 30, 2022. 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 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.

Finding Details

Finding 2022-003
Monthly Reconciliations of Pell Grant and Federal Direct Loans Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2021-22 Financial Aid Year Condition: Under Federal Financial Responsibility regulations and Federal Direct Loan regulations, the College is required to reconcile the Pell grants and Direct Loans disbursed between Common Origination and Disbursement (COD), the student information system, and student accounts on a monthly basis. This reconciliation should be on a student-by-student basis to identify any discrepancies between systems. Additionally, any discrepancies that arise during the reconciliation process should be resolved at that time. Criteria: 34 CFR 685.300(b)(5) and 34 CFR 668 Subpart L Questioned Costs:$0 Context: During the fiscal year-end, the University did not complete any monthly reconciliations on a student-by-student basis. Cause: This was an oversight by the University. Effect: There could be discrepancies between systems that could impact student eligibility and institutional eligibility for Federal Student Aid. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend that the University implement monthly reconciliations and resolve any discrepancies as outlined in the regulations. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2022-004
Incorrect Return of Title IV Funds Calculations DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2021-22 Financial Aid Year Condition: Return to Title IV calculations were not always accurate based on the actual amounts disbursed to students. Criteria: 34 CFR 668.22 Questioned Costs: $689 Context: Out of 3 R2T4 calculations tested, 1 student?s return calculation did not use the actual amount of Pell grant disbursed to the student. Cause: This was an oversight by the University. Effect: The error resulted in an additional $689 of Pell grant to be returned to Title IV. This was corrected during the audit. Identification as repeat finding, if applicable: 2021-007 Recommendation: We recommend that the University work with their third-party administrator to regularly review R2T4 calculations for accuracy. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2022-003
Monthly Reconciliations of Pell Grant and Federal Direct Loans Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2021-22 Financial Aid Year Condition: Under Federal Financial Responsibility regulations and Federal Direct Loan regulations, the College is required to reconcile the Pell grants and Direct Loans disbursed between Common Origination and Disbursement (COD), the student information system, and student accounts on a monthly basis. This reconciliation should be on a student-by-student basis to identify any discrepancies between systems. Additionally, any discrepancies that arise during the reconciliation process should be resolved at that time. Criteria: 34 CFR 685.300(b)(5) and 34 CFR 668 Subpart L Questioned Costs:$0 Context: During the fiscal year-end, the University did not complete any monthly reconciliations on a student-by-student basis. Cause: This was an oversight by the University. Effect: There could be discrepancies between systems that could impact student eligibility and institutional eligibility for Federal Student Aid. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend that the University implement monthly reconciliations and resolve any discrepancies as outlined in the regulations. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2022-004
Incorrect Return of Title IV Funds Calculations DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2021-22 Financial Aid Year Condition: Return to Title IV calculations were not always accurate based on the actual amounts disbursed to students. Criteria: 34 CFR 668.22 Questioned Costs: $689 Context: Out of 3 R2T4 calculations tested, 1 student?s return calculation did not use the actual amount of Pell grant disbursed to the student. Cause: This was an oversight by the University. Effect: The error resulted in an additional $689 of Pell grant to be returned to Title IV. This was corrected during the audit. Identification as repeat finding, if applicable: 2021-007 Recommendation: We recommend that the University work with their third-party administrator to regularly review R2T4 calculations for accuracy. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2022-005
Incorrect Pell Calculations DEPARTMENT OF EDUCATION ALN #: 84.063 Federal Award Identification #: 2021-22 Financial Aid Year Condition: One student out of 30 were not properly awarded Pell based on enrollment status. Criteria: 34 CFR 690.63(b) Questioned Costs: $0 Context: There was one student who was not disbursed their maximum Pell eligibility based on their enrollment status. Cause: Oversight by management when packaging the student. Effect: Pell was not awarded correctly based on enrollment status. Identification as repeat finding, if applicable: 2021-009 Recommendation: We recommend that the University periodically review enrollment status and Pell grant disbursements to ensure students are being disbursed the proper Pell Grant amount as determined by the annual Pell grant tables. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2022-003
Monthly Reconciliations of Pell Grant and Federal Direct Loans Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2021-22 Financial Aid Year Condition: Under Federal Financial Responsibility regulations and Federal Direct Loan regulations, the College is required to reconcile the Pell grants and Direct Loans disbursed between Common Origination and Disbursement (COD), the student information system, and student accounts on a monthly basis. This reconciliation should be on a student-by-student basis to identify any discrepancies between systems. Additionally, any discrepancies that arise during the reconciliation process should be resolved at that time. Criteria: 34 CFR 685.300(b)(5) and 34 CFR 668 Subpart L Questioned Costs:$0 Context: During the fiscal year-end, the University did not complete any monthly reconciliations on a student-by-student basis. Cause: This was an oversight by the University. Effect: There could be discrepancies between systems that could impact student eligibility and institutional eligibility for Federal Student Aid. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend that the University implement monthly reconciliations and resolve any discrepancies as outlined in the regulations. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2022-004
Incorrect Return of Title IV Funds Calculations DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2021-22 Financial Aid Year Condition: Return to Title IV calculations were not always accurate based on the actual amounts disbursed to students. Criteria: 34 CFR 668.22 Questioned Costs: $689 Context: Out of 3 R2T4 calculations tested, 1 student?s return calculation did not use the actual amount of Pell grant disbursed to the student. Cause: This was an oversight by the University. Effect: The error resulted in an additional $689 of Pell grant to be returned to Title IV. This was corrected during the audit. Identification as repeat finding, if applicable: 2021-007 Recommendation: We recommend that the University work with their third-party administrator to regularly review R2T4 calculations for accuracy. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2022-003
Monthly Reconciliations of Pell Grant and Federal Direct Loans Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2021-22 Financial Aid Year Condition: Under Federal Financial Responsibility regulations and Federal Direct Loan regulations, the College is required to reconcile the Pell grants and Direct Loans disbursed between Common Origination and Disbursement (COD), the student information system, and student accounts on a monthly basis. This reconciliation should be on a student-by-student basis to identify any discrepancies between systems. Additionally, any discrepancies that arise during the reconciliation process should be resolved at that time. Criteria: 34 CFR 685.300(b)(5) and 34 CFR 668 Subpart L Questioned Costs:$0 Context: During the fiscal year-end, the University did not complete any monthly reconciliations on a student-by-student basis. Cause: This was an oversight by the University. Effect: There could be discrepancies between systems that could impact student eligibility and institutional eligibility for Federal Student Aid. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend that the University implement monthly reconciliations and resolve any discrepancies as outlined in the regulations. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2022-004
Incorrect Return of Title IV Funds Calculations DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2021-22 Financial Aid Year Condition: Return to Title IV calculations were not always accurate based on the actual amounts disbursed to students. Criteria: 34 CFR 668.22 Questioned Costs: $689 Context: Out of 3 R2T4 calculations tested, 1 student?s return calculation did not use the actual amount of Pell grant disbursed to the student. Cause: This was an oversight by the University. Effect: The error resulted in an additional $689 of Pell grant to be returned to Title IV. This was corrected during the audit. Identification as repeat finding, if applicable: 2021-007 Recommendation: We recommend that the University work with their third-party administrator to regularly review R2T4 calculations for accuracy. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2022-005
Incorrect Pell Calculations DEPARTMENT OF EDUCATION ALN #: 84.063 Federal Award Identification #: 2021-22 Financial Aid Year Condition: One student out of 30 were not properly awarded Pell based on enrollment status. Criteria: 34 CFR 690.63(b) Questioned Costs: $0 Context: There was one student who was not disbursed their maximum Pell eligibility based on their enrollment status. Cause: Oversight by management when packaging the student. Effect: Pell was not awarded correctly based on enrollment status. Identification as repeat finding, if applicable: 2021-009 Recommendation: We recommend that the University periodically review enrollment status and Pell grant disbursements to ensure students are being disbursed the proper Pell Grant amount as determined by the annual Pell grant tables. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.