Audit 18679

FY End
2022-05-31
Total Expended
$133.08M
Findings
2
Programs
28
Organization: Loyola Marymount University (CA)
Year: 2022 Accepted: 2023-02-26

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
20080 2022-001 - Yes I
596522 2022-001 - Yes I

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $98.34M Yes 0
84.425F Education Stabilization Fund $9.42M Yes 1
84.425E Education Stabilization Fund $8.45M Yes 0
84.038 Federal Perkins Loan Program $5.64M Yes 0
84.063 Federal Pell Grant Program $4.81M Yes 0
84.033 Federal Work-Study Program $1.46M Yes 0
84.007 Federal Supplemental Educational Opportunity Grants $603,838 Yes 0
47.083 Integrative Activities $515,789 - 0
16.582 Crime Victim Assistance/discretionary Grants $368,453 - 0
84.042A Trio_student Support Services $302,442 - 0
84.217A Trio_mcnair Post-Baccalaureate Achievement $297,461 - 0
84.220A Centers for International Business Education $288,809 - 0
84.365Z English Language Acquisition State Grants $260,759 Yes 0
84.047M Trio_upward Bound $255,947 - 0
84.047A Trio_upward Bound $221,587 - 0
16.746 Capital Case Litigation Initiative $190,051 - 0
16.820 Postconviction Testing of Dna Evidence to Exonerate the Innocent $132,044 - 0
12.900 Language Grant Program $118,525 - 0
47.076 Education and Human Resources $114,047 - 0
93.847 Diabetes, Digestive, and Kidney Diseases Extramural Research $99,379 - 0
47.074 Biological Sciences $56,122 - 0
93.859 Biomedical Research and Research Training $55,427 - 0
84.367A Improving Teacher Quality State Grants $44,801 - 0
47.050 Geosciences $37,349 - 0
93.273 Alcohol Research Programs $33,641 - 0
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $30,176 Yes 0
45.313 Laura Bush 21st Century Librarian Program $19,301 - 0
10.699 Partnership Agreements $4,934 - 0

Contacts

Name Title Type
MQSXELH2KMB6 Aimee Uen Auditee
3103387544 Sarah Ramos Auditor
No contacts on file

Notes to SEFA

Title: 3. Commingled Assistance Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) summarizes the expenditures of Loyola Marymount University (the University) under programs of the federal government for the year ended May 31, 2022. The information presented in the Schedule is presented on the accrual basis of accounting and prepared in accordance the requirements of Title 2 U.S. Code of Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform 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.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, wherein certain types of expenditures are not allowable or are limited as to reimbursement.For purposes of this Schedule, federal awards include all grants, contracts, and similar agreements entered into directly and indirectly between the University and agencies and departments of the federal government. De Minimis Rate Used: N Rate Explanation: The University has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The University has an approved predetermined indirect cost rate of 43.9% of modified total direct costs and a separate fringe benefit rate of 27.9% of salaries and wages effective through May 31, 2025. Some of the grants currently in effect, which include indirect costs, use a rate lower than the federally approved indirect cost rate. The California Student Aid Commission (CSAC) administers the State Cal Grant A and B Programs, selects the student recipients of these grant awards, and provides funds to participating institutions for disbursement. Federal Temporary Assistance for Needy Families (TANF) funds, Assistant Listing Number 93.558, from the United States Department of Health and Human Services are commingled with general state funding when providing grants and a specific amount of TANF funding provided is not able to be determined for these Cal Grant awards and excluded from the Schedule accordingly. In fiscal year 2022, the University received Cal Grant A and B funds in the amount of $6,662,067.
Title: 4. Federal Perkins Loan Program Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) summarizes the expenditures of Loyola Marymount University (the University) under programs of the federal government for the year ended May 31, 2022. The information presented in the Schedule is presented on the accrual basis of accounting and prepared in accordance the requirements of Title 2 U.S. Code of Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform 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.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, wherein certain types of expenditures are not allowable or are limited as to reimbursement.For purposes of this Schedule, federal awards include all grants, contracts, and similar agreements entered into directly and indirectly between the University and agencies and departments of the federal government. De Minimis Rate Used: N Rate Explanation: The University has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The University has an approved predetermined indirect cost rate of 43.9% of modified total direct costs and a separate fringe benefit rate of 27.9% of salaries and wages effective through May 31, 2025. Some of the grants currently in effect, which include indirect costs, use a rate lower than the federally approved indirect cost rate. The Federal Perkins Loan Program, Assistant Listing Number 84.038, is administered directly by the University, with balances and transactions relating to this program are included in the Universitys financial statements. For the year ended May 31, 2022, federal expenditures presented in the Schedule include loans outstanding at the beginning of the year. Due to the cessation of the Perkins Loan Program, no new loans were made during the year. The balance of loans outstanding at May 31, 2022 was $4,447,388.
Title: 5. Department of Education - Higher Education Emergency Relief Fund Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) summarizes the expenditures of Loyola Marymount University (the University) under programs of the federal government for the year ended May 31, 2022. The information presented in the Schedule is presented on the accrual basis of accounting and prepared in accordance the requirements of Title 2 U.S. Code of Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform 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.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, wherein certain types of expenditures are not allowable or are limited as to reimbursement.For purposes of this Schedule, federal awards include all grants, contracts, and similar agreements entered into directly and indirectly between the University and agencies and departments of the federal government. De Minimis Rate Used: N Rate Explanation: The University has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The University has an approved predetermined indirect cost rate of 43.9% of modified total direct costs and a separate fringe benefit rate of 27.9% of salaries and wages effective through May 31, 2025. Some of the grants currently in effect, which include indirect costs, use a rate lower than the federally approved indirect cost rate. The University was the recipient of funding under assistance listing number 84.425, Higher Education Emergency Relief Fund (HEERF). Of the amounts on the Schedule, $3,742,855 are supported by lost revenue. As such, this amount represents a reconciling item between the federal expenses in the University's financial statements and the amount included on the Schedule.

Finding Details

Finding 2022-001 ? Suspension and Debarment Verification Federal Awarding Agency: Department of Education Award Name: COVID-19 ? Education Stabilization Fund ? Institutional Portion Award Number: ED-GRANTS-042120-004 Award Year: June 1,2021 - May 31,2022 Assistant Listing Title: HEERF Institutional Portion Assistant Listing Number: 84.425F Pass-through entities: Not applicable Criteria Per 2 CFR 180.220, suspension and debarment checks are required to be performed for covered transactions that equal or exceed $25,000. Condition As discussed in the Summary Schedule of Prior Audit Findings and Status, we identified a finding in fiscal year 2021 related to suspension and debarment checks not being performed in advance of making the determination to seek reimbursement of an expenditure with federal funding. In December 2021, management took corrective actions to address the finding. During fiscal year 2022, we selected five of the University?s procurements which equalled or exceeded the covered transaction threshold. Two samples totaling $313,500 which were purchased prior to December 2021 had no documentation to evidence that a suspension and debarment check was performed prior to utilizing federal funding to reimburse the University for the expenditure. No exceptions were noted related to the three samples that were made during the period of time after management?s corrective actions were taken in December 2021. Cause The University has a process to ensure that suspension and debarment verifications are performed for expenditures that will be reimbursed by federal award funding within the Office for Research & Sponsored Projects. However, at the time these procurements were made, the decision to utilize federal award funding to reimburse the University for the expenditures had not been made. As a result, these procurements were made through the University?s standard operational procurement process, and suspension and debarment procedures were not performed. Effect Procurements could be improperly entered into with vendors that are suspended or debarred. In the case above, the entities were not found to be suspended or debarred at the time of testing. Questioned Costs None noted. Recommendation We recommend management continue to ensure suspension and debarment checks are performed on a timely basis consistent with the policies and procedures implemented in December 2021. Management?s Corrective Action Plan Management?s response is reported on ?Management?s Views and Corrective Action Plan? at the end of this report.
Finding 2022-001 ? Suspension and Debarment Verification Federal Awarding Agency: Department of Education Award Name: COVID-19 ? Education Stabilization Fund ? Institutional Portion Award Number: ED-GRANTS-042120-004 Award Year: June 1,2021 - May 31,2022 Assistant Listing Title: HEERF Institutional Portion Assistant Listing Number: 84.425F Pass-through entities: Not applicable Criteria Per 2 CFR 180.220, suspension and debarment checks are required to be performed for covered transactions that equal or exceed $25,000. Condition As discussed in the Summary Schedule of Prior Audit Findings and Status, we identified a finding in fiscal year 2021 related to suspension and debarment checks not being performed in advance of making the determination to seek reimbursement of an expenditure with federal funding. In December 2021, management took corrective actions to address the finding. During fiscal year 2022, we selected five of the University?s procurements which equalled or exceeded the covered transaction threshold. Two samples totaling $313,500 which were purchased prior to December 2021 had no documentation to evidence that a suspension and debarment check was performed prior to utilizing federal funding to reimburse the University for the expenditure. No exceptions were noted related to the three samples that were made during the period of time after management?s corrective actions were taken in December 2021. Cause The University has a process to ensure that suspension and debarment verifications are performed for expenditures that will be reimbursed by federal award funding within the Office for Research & Sponsored Projects. However, at the time these procurements were made, the decision to utilize federal award funding to reimburse the University for the expenditures had not been made. As a result, these procurements were made through the University?s standard operational procurement process, and suspension and debarment procedures were not performed. Effect Procurements could be improperly entered into with vendors that are suspended or debarred. In the case above, the entities were not found to be suspended or debarred at the time of testing. Questioned Costs None noted. Recommendation We recommend management continue to ensure suspension and debarment checks are performed on a timely basis consistent with the policies and procedures implemented in December 2021. Management?s Corrective Action Plan Management?s response is reported on ?Management?s Views and Corrective Action Plan? at the end of this report.