Audit 21005

FY End
2022-06-30
Total Expended
$16.96M
Findings
8
Programs
7
Organization: William Jessup University (CA)
Year: 2022 Accepted: 2023-02-14
Auditor: Capincrouse LLP

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
25266 2022-001 Material Weakness - N
25267 2022-001 Material Weakness - N
25268 2022-001 Material Weakness - N
25269 2022-002 - - L
601708 2022-001 Material Weakness - N
601709 2022-001 Material Weakness - N
601710 2022-001 Material Weakness - N
601711 2022-002 - - L

Contacts

Name Title Type
FBXYMNPM5KS6 Alison Hayes Auditee
9165772232 Christopher Gordon, 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 William Jessup 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 William Jessup 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

Late Returns of Title IV Calculations Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.007, 84.063 and 84.268 Federal Award Identification #: 2021-22 Financial Aid Year Condition: When students withdrew either officially or unofficially, the University did not always complete R2T4 calculations accurately and return unearned Title IV aid timely. Criteria: 34 CFR 668.22 Questioned Costs: $10,417 Context: Out of 29 withdrawn students tested for timely and accurate R2T4?s, 13 had either late returns, inaccurate returns or both. 6 students had a total of $12,154 returned late ranging from 9 to 154 days, with $811 included in questioned costs for a return made as part of audit process. 2 students had $22,715 returned late ranging from 21 to 151 days, which includes $9,606 in questioned costs for miscalculations identified in the audit resulting in additional funds required to be returned. 3 students had $5,490 returned late ranging from 6 to 28 days late, however 2 had correct calculations but $1,009 more was returned than required and the other had an incorrect calculation resulting in $3,516 more returned than required. 1 student who withdrew from a modular program met an exemption but the University returned $1,652 that the student was eligible to keep. 1 other student had a $615 post withdraw disbursement that was made 90 days late. Cause: Significant staff turnover in financial aid office as well as a system conversion. There is also a lack of understanding regarding the new modular withdraw regulations. Effect: The correct amount of Title IV funds not returned timely as required. Noncompliance with new R2T4 regulations regarding withdrawals from modular programs. Identification as repeat finding, if applicable: N/A Recommendation: We recommend that additional training be completed on R2T4 calculations and the new modular withdraw regulations. We also recommend that financial aid office work with the registrar to put procedures in place for timely notification when students stop attending. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Late Returns of Title IV Calculations Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.007, 84.063 and 84.268 Federal Award Identification #: 2021-22 Financial Aid Year Condition: When students withdrew either officially or unofficially, the University did not always complete R2T4 calculations accurately and return unearned Title IV aid timely. Criteria: 34 CFR 668.22 Questioned Costs: $10,417 Context: Out of 29 withdrawn students tested for timely and accurate R2T4?s, 13 had either late returns, inaccurate returns or both. 6 students had a total of $12,154 returned late ranging from 9 to 154 days, with $811 included in questioned costs for a return made as part of audit process. 2 students had $22,715 returned late ranging from 21 to 151 days, which includes $9,606 in questioned costs for miscalculations identified in the audit resulting in additional funds required to be returned. 3 students had $5,490 returned late ranging from 6 to 28 days late, however 2 had correct calculations but $1,009 more was returned than required and the other had an incorrect calculation resulting in $3,516 more returned than required. 1 student who withdrew from a modular program met an exemption but the University returned $1,652 that the student was eligible to keep. 1 other student had a $615 post withdraw disbursement that was made 90 days late. Cause: Significant staff turnover in financial aid office as well as a system conversion. There is also a lack of understanding regarding the new modular withdraw regulations. Effect: The correct amount of Title IV funds not returned timely as required. Noncompliance with new R2T4 regulations regarding withdrawals from modular programs. Identification as repeat finding, if applicable: N/A Recommendation: We recommend that additional training be completed on R2T4 calculations and the new modular withdraw regulations. We also recommend that financial aid office work with the registrar to put procedures in place for timely notification when students stop attending. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Late Returns of Title IV Calculations Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.007, 84.063 and 84.268 Federal Award Identification #: 2021-22 Financial Aid Year Condition: When students withdrew either officially or unofficially, the University did not always complete R2T4 calculations accurately and return unearned Title IV aid timely. Criteria: 34 CFR 668.22 Questioned Costs: $10,417 Context: Out of 29 withdrawn students tested for timely and accurate R2T4?s, 13 had either late returns, inaccurate returns or both. 6 students had a total of $12,154 returned late ranging from 9 to 154 days, with $811 included in questioned costs for a return made as part of audit process. 2 students had $22,715 returned late ranging from 21 to 151 days, which includes $9,606 in questioned costs for miscalculations identified in the audit resulting in additional funds required to be returned. 3 students had $5,490 returned late ranging from 6 to 28 days late, however 2 had correct calculations but $1,009 more was returned than required and the other had an incorrect calculation resulting in $3,516 more returned than required. 1 student who withdrew from a modular program met an exemption but the University returned $1,652 that the student was eligible to keep. 1 other student had a $615 post withdraw disbursement that was made 90 days late. Cause: Significant staff turnover in financial aid office as well as a system conversion. There is also a lack of understanding regarding the new modular withdraw regulations. Effect: The correct amount of Title IV funds not returned timely as required. Noncompliance with new R2T4 regulations regarding withdrawals from modular programs. Identification as repeat finding, if applicable: N/A Recommendation: We recommend that additional training be completed on R2T4 calculations and the new modular withdraw regulations. We also recommend that financial aid office work with the registrar to put procedures in place for timely notification when students stop attending. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Higher Education Stabilization Fund Reporting Other Matter DEPARTMENT OF EDUCATION ALN #: 84.425E Education Stabilization Fund Federal Award Identification #: P425E202939 Condition: The University did not post the required Education Stabilization Fund Higher Education Emergency Relief Fund (HEERF) reports to their website as required for the American Rescue Plan (ARP) student portion expended. Criteria: 86 FR 262132, CFR 200.329. For each student grant disbursement made, the University is required to report quarterly to their website a summary of how the funds were allocated and disbursed. Questioned Costs: None Context: During the audit, it was noted that while the University had appropriately disclosed the required CARES Act and CRRSAA Act reporting and ARP institutional reporting for HEERF institutional funds, the ARP student emergency grant disbursements were not disclosed on their website. The University corrected and amounts were posted to the website before the audit was finalized. Cause: There were multiple rounds of HEERF funding released, each with different requirements, which led to a gap in understanding of the requirements of the HEERF reporting. Effect: The University was not in compliance with the reporting requirements of HEERF. Identification as repeat finding, if applicable: n/a Recommendation: We recommend that the University complete the HEERF quarterly reporting until the HEERF funding is spent to ensure compliance is maintained. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Late Returns of Title IV Calculations Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.007, 84.063 and 84.268 Federal Award Identification #: 2021-22 Financial Aid Year Condition: When students withdrew either officially or unofficially, the University did not always complete R2T4 calculations accurately and return unearned Title IV aid timely. Criteria: 34 CFR 668.22 Questioned Costs: $10,417 Context: Out of 29 withdrawn students tested for timely and accurate R2T4?s, 13 had either late returns, inaccurate returns or both. 6 students had a total of $12,154 returned late ranging from 9 to 154 days, with $811 included in questioned costs for a return made as part of audit process. 2 students had $22,715 returned late ranging from 21 to 151 days, which includes $9,606 in questioned costs for miscalculations identified in the audit resulting in additional funds required to be returned. 3 students had $5,490 returned late ranging from 6 to 28 days late, however 2 had correct calculations but $1,009 more was returned than required and the other had an incorrect calculation resulting in $3,516 more returned than required. 1 student who withdrew from a modular program met an exemption but the University returned $1,652 that the student was eligible to keep. 1 other student had a $615 post withdraw disbursement that was made 90 days late. Cause: Significant staff turnover in financial aid office as well as a system conversion. There is also a lack of understanding regarding the new modular withdraw regulations. Effect: The correct amount of Title IV funds not returned timely as required. Noncompliance with new R2T4 regulations regarding withdrawals from modular programs. Identification as repeat finding, if applicable: N/A Recommendation: We recommend that additional training be completed on R2T4 calculations and the new modular withdraw regulations. We also recommend that financial aid office work with the registrar to put procedures in place for timely notification when students stop attending. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Late Returns of Title IV Calculations Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.007, 84.063 and 84.268 Federal Award Identification #: 2021-22 Financial Aid Year Condition: When students withdrew either officially or unofficially, the University did not always complete R2T4 calculations accurately and return unearned Title IV aid timely. Criteria: 34 CFR 668.22 Questioned Costs: $10,417 Context: Out of 29 withdrawn students tested for timely and accurate R2T4?s, 13 had either late returns, inaccurate returns or both. 6 students had a total of $12,154 returned late ranging from 9 to 154 days, with $811 included in questioned costs for a return made as part of audit process. 2 students had $22,715 returned late ranging from 21 to 151 days, which includes $9,606 in questioned costs for miscalculations identified in the audit resulting in additional funds required to be returned. 3 students had $5,490 returned late ranging from 6 to 28 days late, however 2 had correct calculations but $1,009 more was returned than required and the other had an incorrect calculation resulting in $3,516 more returned than required. 1 student who withdrew from a modular program met an exemption but the University returned $1,652 that the student was eligible to keep. 1 other student had a $615 post withdraw disbursement that was made 90 days late. Cause: Significant staff turnover in financial aid office as well as a system conversion. There is also a lack of understanding regarding the new modular withdraw regulations. Effect: The correct amount of Title IV funds not returned timely as required. Noncompliance with new R2T4 regulations regarding withdrawals from modular programs. Identification as repeat finding, if applicable: N/A Recommendation: We recommend that additional training be completed on R2T4 calculations and the new modular withdraw regulations. We also recommend that financial aid office work with the registrar to put procedures in place for timely notification when students stop attending. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Late Returns of Title IV Calculations Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.007, 84.063 and 84.268 Federal Award Identification #: 2021-22 Financial Aid Year Condition: When students withdrew either officially or unofficially, the University did not always complete R2T4 calculations accurately and return unearned Title IV aid timely. Criteria: 34 CFR 668.22 Questioned Costs: $10,417 Context: Out of 29 withdrawn students tested for timely and accurate R2T4?s, 13 had either late returns, inaccurate returns or both. 6 students had a total of $12,154 returned late ranging from 9 to 154 days, with $811 included in questioned costs for a return made as part of audit process. 2 students had $22,715 returned late ranging from 21 to 151 days, which includes $9,606 in questioned costs for miscalculations identified in the audit resulting in additional funds required to be returned. 3 students had $5,490 returned late ranging from 6 to 28 days late, however 2 had correct calculations but $1,009 more was returned than required and the other had an incorrect calculation resulting in $3,516 more returned than required. 1 student who withdrew from a modular program met an exemption but the University returned $1,652 that the student was eligible to keep. 1 other student had a $615 post withdraw disbursement that was made 90 days late. Cause: Significant staff turnover in financial aid office as well as a system conversion. There is also a lack of understanding regarding the new modular withdraw regulations. Effect: The correct amount of Title IV funds not returned timely as required. Noncompliance with new R2T4 regulations regarding withdrawals from modular programs. Identification as repeat finding, if applicable: N/A Recommendation: We recommend that additional training be completed on R2T4 calculations and the new modular withdraw regulations. We also recommend that financial aid office work with the registrar to put procedures in place for timely notification when students stop attending. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Higher Education Stabilization Fund Reporting Other Matter DEPARTMENT OF EDUCATION ALN #: 84.425E Education Stabilization Fund Federal Award Identification #: P425E202939 Condition: The University did not post the required Education Stabilization Fund Higher Education Emergency Relief Fund (HEERF) reports to their website as required for the American Rescue Plan (ARP) student portion expended. Criteria: 86 FR 262132, CFR 200.329. For each student grant disbursement made, the University is required to report quarterly to their website a summary of how the funds were allocated and disbursed. Questioned Costs: None Context: During the audit, it was noted that while the University had appropriately disclosed the required CARES Act and CRRSAA Act reporting and ARP institutional reporting for HEERF institutional funds, the ARP student emergency grant disbursements were not disclosed on their website. The University corrected and amounts were posted to the website before the audit was finalized. Cause: There were multiple rounds of HEERF funding released, each with different requirements, which led to a gap in understanding of the requirements of the HEERF reporting. Effect: The University was not in compliance with the reporting requirements of HEERF. Identification as repeat finding, if applicable: n/a Recommendation: We recommend that the University complete the HEERF quarterly reporting until the HEERF funding is spent to ensure compliance is maintained. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.