FAC Explorer

Audit 19527

FY End
2022-06-30
Total Expended
$44.36M
Findings
2
Programs
8
Organization: Bethany College (WV)
Year: 2022 Accepted: 2023-03-28
Auditor: Baker Tilly

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
15890 2022-002 Significant Deficiency Yes N
592332 2022-002 Significant Deficiency Yes N

Programs

ALN Program Spent Major Findings
10.766 Community Facilities Loans and Grants $34.60M Yes 0
84.268 Federal Direct Student Loans $3.87M Yes 1
84.038 Federal Perkins Loan Program $3.22M Yes 0
84.063 Federal Pell Grant Program $1.17M Yes 0
84.007 Federal Supplemental Educational Opportunity Grants $502,900 Yes 0
84.425 Education Stabilization Fund $74,449 Yes 0
84.033 Federal Work-Study Program $70,503 Yes 0
43.008 Education $11,000 - 0

Contacts

Name Title Type
EU9HZ9RKLAL3 Susan R Halulko Auditee
3048297033 Susan Maloney Auditor
No contacts on file

Notes to SEFA

Title: Relationship to Basic Financial Statements Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) presents the expenditures of all federal awards programs of Bethany College and Affiliate (collectively, the College) using the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Because the 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: Student Financial Assistance and Loan Programs Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) presents the expenditures of all federal awards programs of Bethany College and Affiliate (collectively, the College) using the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The total loans granted under the Federal Direct Student Loan Program, which were not made by the College but were received by its students, were approximately $3,867,000 for the year ended June 30, 2022.The total loans outstanding under the Federal Perkins Loan Program at June 30, 2022 were approximately $2,669,000.Federal awards expenditures include loans administered under the Federal Direct Student Loan Program during the year ended June 30, 2022, and Federal Perkins Loans outstanding as of June 30, 2021 plus loans awarded during the year ended June 30, 2022.
Title: Community Facilities Loan (USDA Loan) Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) presents the expenditures of all federal awards programs of Bethany College and Affiliate (collectively, the College) using the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The USDA loan included on the schedule of expenditures of federal awards is administered directly by the College and the balance and transactions related to this program are included in the College's consolidated financial statements. In accordance with the Uniform Guidance, the schedule of expenditures of federal awards reflects the new loans made or received during the year ended June 30, 2022. There was no balance on the loan as of June 30, 2021. The balance of the loan outstanding at June 30, 2022 was $34,600,000.

Finding Details

Finding 2022-002
Federal Program: Student Financial Assistance Cluster, Federal Direct Student Loans Federal Agency: Department of Education Assistance Listing Number: 84.268 Federal Award Year: June 30, 2022 Criteria: Title IV regulations (34 CFR 685.309(b)) require that upon receipt of an enrollment report from the Secretary, institutions must update all information included in the report and return the report to the Secretary: (i) in the manner and format prescribed by the Secretary; and (ii) within the timeframe prescribed by the Secretary. Unless it expects to submit its next updated enrollment report to the Secretary within the next 60 days, an institution must notify the Secretary within 30 days after the date the institution discovers that: (i) a loan under Title IV of the Act was made to or on behalf of a student who was enrolled or accepted for enrollment at the institution, and the student has ceased to be enrolled on at least a half-time basis or failed to enroll on at least a half-time basis for the period for which the loan was intended; or (ii) a student who is enrolled at the institution and who received a loan under Title IV of the Act has changed his or her permanent address. Condition/Context: The change in student status for 25 of 25 students tested was not reported to the National Student Loan Data System (NSLDS) within 30 days or included in a response to a roster file within 60 days. However, the students were ultimately reported to the NSLDS. The sample was not a statistically valid sample. Questioned Costs: There are no questioned costs associated with this finding. Cause: The College's procedures for reporting students were not designed appropriately in order to allow for timely reporting to the NSLDS. Effect: The accuracy of Title IV student loan records depends heavily on the accuracy of the enrollment information reported by schools. If an institution does not review, update and verify student enrollment statuses, effective dates of the enrollment status, and the anticipated completion dates, then the Title IV student loan records will be inaccurate. Recommendation: We recommend that the College review its procedures for student status changes and NSLDS notifications to ensure there are follow-up and review procedures being performed for all students with status changes at the College. Management's Response: Management concurs with the finding and the College will periodically perform independent reviews of the information provided to the NSLDS to ensure the status change information has been updated in the NSLDS during the required time period.
Finding 2022-002
Federal Program: Student Financial Assistance Cluster, Federal Direct Student Loans Federal Agency: Department of Education Assistance Listing Number: 84.268 Federal Award Year: June 30, 2022 Criteria: Title IV regulations (34 CFR 685.309(b)) require that upon receipt of an enrollment report from the Secretary, institutions must update all information included in the report and return the report to the Secretary: (i) in the manner and format prescribed by the Secretary; and (ii) within the timeframe prescribed by the Secretary. Unless it expects to submit its next updated enrollment report to the Secretary within the next 60 days, an institution must notify the Secretary within 30 days after the date the institution discovers that: (i) a loan under Title IV of the Act was made to or on behalf of a student who was enrolled or accepted for enrollment at the institution, and the student has ceased to be enrolled on at least a half-time basis or failed to enroll on at least a half-time basis for the period for which the loan was intended; or (ii) a student who is enrolled at the institution and who received a loan under Title IV of the Act has changed his or her permanent address. Condition/Context: The change in student status for 25 of 25 students tested was not reported to the National Student Loan Data System (NSLDS) within 30 days or included in a response to a roster file within 60 days. However, the students were ultimately reported to the NSLDS. The sample was not a statistically valid sample. Questioned Costs: There are no questioned costs associated with this finding. Cause: The College's procedures for reporting students were not designed appropriately in order to allow for timely reporting to the NSLDS. Effect: The accuracy of Title IV student loan records depends heavily on the accuracy of the enrollment information reported by schools. If an institution does not review, update and verify student enrollment statuses, effective dates of the enrollment status, and the anticipated completion dates, then the Title IV student loan records will be inaccurate. Recommendation: We recommend that the College review its procedures for student status changes and NSLDS notifications to ensure there are follow-up and review procedures being performed for all students with status changes at the College. Management's Response: Management concurs with the finding and the College will periodically perform independent reviews of the information provided to the NSLDS to ensure the status change information has been updated in the NSLDS during the required time period.