FINDING 2022-001 ? Material Adjustments Condition Found: During the course of the audit for the University, we proposed journal entries to adjust accounts payable due to an amount owed at year-end to a vendor who was assisting with determining the employee retention credit among other expenses that should have been recorded as accounts payable, fixed assets for amounts that were originally expensed to repair and maintenance, and we also adjusted deferred revenue, scholarship expense, and grant income to the correct balances. Criteria: Based on professional standards, identification by an auditor of a material misstatement in the financial statements under audit that was not initially identified by the entity's internal control is a strong indicator of a material weakness. Cause: This occurred because the University did not identify and make all necessary adjustments to the financial statements before the audit began. Over the past several years, the number of adjustments we have had to make has been decreasing, and we applaud the accounting staff and management for this. We also understand that there were some extenuating circumstances. However, unfortunately, these circumstances do not rectify the situation of the trial balance not being correct when presented for audit. Possible Asserted Effect: Because the aforementioned adjustments would have materially misstated the statement of financial position and statement of activities, we believe that this matter is a material weakness in the controls and practices of the University. Repeat Finding: A similar finding was reported in the prior year?s audit as Finding 2021-001. Recommendation: We recommend that the University develop and implement procedures to properly record transactions before the records are submitted for audit. We understand from the accounting staff and management that changes have already occurred to rectify this going forward. Management Response: We will continue to increase the review of general ledger entries and strive to record all necessary adjustments prior to the beginning of the audit. Also, the processing flow of certain transactions has been changed so that the accounting department is the first to engage these transactions. Finally, an effort is being made to close the books monthly so that events are still fresh when that takes place.
FINDING 2022-003 ? Authorization to Hold Credit Balances Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Pell Grant Program Federal Direct Loan Program Federal Supplemental Educational Opportunity Grant ALN and Program Expenditure: 84.063 ($339,284) 84.268 ($506,590) 84.007 ($ 10,703) Award Number: P063P211726 P268K211726 P007A216494 Federal Award Year: July 1, 2021 to June 30, 2022 Questioned Costs: $-0- Condition Found: For three of the twenty-five students in our sample, the University held Title IV credit balances for longer than fourteen days without written authorization. Criteria: An institution may not hold a credit balance, which is caused by federal student financial aid funds, on a student?s account for more than fourteen days without written authorization from the student. Cause: Miscommunication between the cashier, student financial aid office, and accounts payable clerk caused a delay with issuing the credit balance refund check to the student. Possible Asserted Effect: The Title IV credit balances were not returned timely to the students. Repeat Finding: There was not a similar finding in the previous year. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: The credit balances were returned to all three students in question before the end of the academic year. Communication should be improved between the offices involved in the disbursement process to ensure that credit balances are refunded timely. Management Response: The credit balances were returned to the students in question before the end of the academic year. Several changes in staffing have occurred. The financial aid office will follow-up with the cashier and accounts payable clerk to ensure that the credit balance refunds requested are processed timely.
FINDING 2022-001 ? Material Adjustments Condition Found: During the course of the audit for the University, we proposed journal entries to adjust accounts payable due to an amount owed at year-end to a vendor who was assisting with determining the employee retention credit among other expenses that should have been recorded as accounts payable, fixed assets for amounts that were originally expensed to repair and maintenance, and we also adjusted deferred revenue, scholarship expense, and grant income to the correct balances. Criteria: Based on professional standards, identification by an auditor of a material misstatement in the financial statements under audit that was not initially identified by the entity's internal control is a strong indicator of a material weakness. Cause: This occurred because the University did not identify and make all necessary adjustments to the financial statements before the audit began. Over the past several years, the number of adjustments we have had to make has been decreasing, and we applaud the accounting staff and management for this. We also understand that there were some extenuating circumstances. However, unfortunately, these circumstances do not rectify the situation of the trial balance not being correct when presented for audit. Possible Asserted Effect: Because the aforementioned adjustments would have materially misstated the statement of financial position and statement of activities, we believe that this matter is a material weakness in the controls and practices of the University. Repeat Finding: A similar finding was reported in the prior year?s audit as Finding 2021-001. Recommendation: We recommend that the University develop and implement procedures to properly record transactions before the records are submitted for audit. We understand from the accounting staff and management that changes have already occurred to rectify this going forward. Management Response: We will continue to increase the review of general ledger entries and strive to record all necessary adjustments prior to the beginning of the audit. Also, the processing flow of certain transactions has been changed so that the accounting department is the first to engage these transactions. Finally, an effort is being made to close the books monthly so that events are still fresh when that takes place.
FINDING 2022-002 ? Verification Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Pell Grant Program ALN and Program Expenditure: 84.063 ($339,284) Award Number: P063P211726 Federal Award Year: July 1, 2021 to June 30, 2022 Questioned Costs: $300 Condition Found: The information on the verification worksheet and tax transcript for Parents? AGI, Parents? Taxes Paid, Parent 1 and 2 Earned Income, and Parents? Military/Clergy Housing Allowance did not agree to the amounts reported on the ISIR for one of the twenty-five students sampled. Criteria: If a student is in the V1 verification group, the following items must be verified: adjusted gross income, U.S. income taxes paid, untaxed portions of IRA distributions, untaxed portions or pensions, IRA deductions and payments, tax exempt interest income, education credits, household size, the number in college, SNAP benefits, and child support paid. If discrepancies are found when reviewing these documents and amounts, the information should be updated and the student?s financial aid eligibility should be recalculated. Cause: For the student in question, the financial aid office requested and collected the required documentation and information. However, the financial aid office did not make the necessary corrections to the parents income and recalculate the student?s financial aid eligibility. Possible Asserted Effect: The Expected Family Contribution could change which could cause an over or under award of federal aid, especially the Federal Pell Grant. The student in question received $300 of Federal Pell Grant funds that the student was not eligible to receive. Repeat Finding: There was not a similar finding in the previous year. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: The Financial Aid Office should correct the income items in question and recalculate the EFC. The new EFC and Pell award should be calculated. $300 in Pell Grant funds should be returned to the Department of Education. Management Response: The Financial Aid Office updated the income items and recalculated the EFC for the student in question. The amount of Pell the student was eligible to receive was calculated based on the new EFC. $300 was returned to the Department of Education in August 2022
FINDING 2022-003 ? Authorization to Hold Credit Balances Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Pell Grant Program Federal Direct Loan Program Federal Supplemental Educational Opportunity Grant ALN and Program Expenditure: 84.063 ($339,284) 84.268 ($506,590) 84.007 ($ 10,703) Award Number: P063P211726 P268K211726 P007A216494 Federal Award Year: July 1, 2021 to June 30, 2022 Questioned Costs: $-0- Condition Found: For three of the twenty-five students in our sample, the University held Title IV credit balances for longer than fourteen days without written authorization. Criteria: An institution may not hold a credit balance, which is caused by federal student financial aid funds, on a student?s account for more than fourteen days without written authorization from the student. Cause: Miscommunication between the cashier, student financial aid office, and accounts payable clerk caused a delay with issuing the credit balance refund check to the student. Possible Asserted Effect: The Title IV credit balances were not returned timely to the students. Repeat Finding: There was not a similar finding in the previous year. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: The credit balances were returned to all three students in question before the end of the academic year. Communication should be improved between the offices involved in the disbursement process to ensure that credit balances are refunded timely. Management Response: The credit balances were returned to the students in question before the end of the academic year. Several changes in staffing have occurred. The financial aid office will follow-up with the cashier and accounts payable clerk to ensure that the credit balance refunds requested are processed timely.
FINDING 2022-001 ? Material Adjustments Condition Found: During the course of the audit for the University, we proposed journal entries to adjust accounts payable due to an amount owed at year-end to a vendor who was assisting with determining the employee retention credit among other expenses that should have been recorded as accounts payable, fixed assets for amounts that were originally expensed to repair and maintenance, and we also adjusted deferred revenue, scholarship expense, and grant income to the correct balances. Criteria: Based on professional standards, identification by an auditor of a material misstatement in the financial statements under audit that was not initially identified by the entity's internal control is a strong indicator of a material weakness. Cause: This occurred because the University did not identify and make all necessary adjustments to the financial statements before the audit began. Over the past several years, the number of adjustments we have had to make has been decreasing, and we applaud the accounting staff and management for this. We also understand that there were some extenuating circumstances. However, unfortunately, these circumstances do not rectify the situation of the trial balance not being correct when presented for audit. Possible Asserted Effect: Because the aforementioned adjustments would have materially misstated the statement of financial position and statement of activities, we believe that this matter is a material weakness in the controls and practices of the University. Repeat Finding: A similar finding was reported in the prior year?s audit as Finding 2021-001. Recommendation: We recommend that the University develop and implement procedures to properly record transactions before the records are submitted for audit. We understand from the accounting staff and management that changes have already occurred to rectify this going forward. Management Response: We will continue to increase the review of general ledger entries and strive to record all necessary adjustments prior to the beginning of the audit. Also, the processing flow of certain transactions has been changed so that the accounting department is the first to engage these transactions. Finally, an effort is being made to close the books monthly so that events are still fresh when that takes place.
FINDING 2022-003 ? Authorization to Hold Credit Balances Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Pell Grant Program Federal Direct Loan Program Federal Supplemental Educational Opportunity Grant ALN and Program Expenditure: 84.063 ($339,284) 84.268 ($506,590) 84.007 ($ 10,703) Award Number: P063P211726 P268K211726 P007A216494 Federal Award Year: July 1, 2021 to June 30, 2022 Questioned Costs: $-0- Condition Found: For three of the twenty-five students in our sample, the University held Title IV credit balances for longer than fourteen days without written authorization. Criteria: An institution may not hold a credit balance, which is caused by federal student financial aid funds, on a student?s account for more than fourteen days without written authorization from the student. Cause: Miscommunication between the cashier, student financial aid office, and accounts payable clerk caused a delay with issuing the credit balance refund check to the student. Possible Asserted Effect: The Title IV credit balances were not returned timely to the students. Repeat Finding: There was not a similar finding in the previous year. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: The credit balances were returned to all three students in question before the end of the academic year. Communication should be improved between the offices involved in the disbursement process to ensure that credit balances are refunded timely. Management Response: The credit balances were returned to the students in question before the end of the academic year. Several changes in staffing have occurred. The financial aid office will follow-up with the cashier and accounts payable clerk to ensure that the credit balance refunds requested are processed timely.
FINDING 2022-001 ? Material Adjustments Condition Found: During the course of the audit for the University, we proposed journal entries to adjust accounts payable due to an amount owed at year-end to a vendor who was assisting with determining the employee retention credit among other expenses that should have been recorded as accounts payable, fixed assets for amounts that were originally expensed to repair and maintenance, and we also adjusted deferred revenue, scholarship expense, and grant income to the correct balances. Criteria: Based on professional standards, identification by an auditor of a material misstatement in the financial statements under audit that was not initially identified by the entity's internal control is a strong indicator of a material weakness. Cause: This occurred because the University did not identify and make all necessary adjustments to the financial statements before the audit began. Over the past several years, the number of adjustments we have had to make has been decreasing, and we applaud the accounting staff and management for this. We also understand that there were some extenuating circumstances. However, unfortunately, these circumstances do not rectify the situation of the trial balance not being correct when presented for audit. Possible Asserted Effect: Because the aforementioned adjustments would have materially misstated the statement of financial position and statement of activities, we believe that this matter is a material weakness in the controls and practices of the University. Repeat Finding: A similar finding was reported in the prior year?s audit as Finding 2021-001. Recommendation: We recommend that the University develop and implement procedures to properly record transactions before the records are submitted for audit. We understand from the accounting staff and management that changes have already occurred to rectify this going forward. Management Response: We will continue to increase the review of general ledger entries and strive to record all necessary adjustments prior to the beginning of the audit. Also, the processing flow of certain transactions has been changed so that the accounting department is the first to engage these transactions. Finally, an effort is being made to close the books monthly so that events are still fresh when that takes place.
FINDING 2022-003 ? Authorization to Hold Credit Balances Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Pell Grant Program Federal Direct Loan Program Federal Supplemental Educational Opportunity Grant ALN and Program Expenditure: 84.063 ($339,284) 84.268 ($506,590) 84.007 ($ 10,703) Award Number: P063P211726 P268K211726 P007A216494 Federal Award Year: July 1, 2021 to June 30, 2022 Questioned Costs: $-0- Condition Found: For three of the twenty-five students in our sample, the University held Title IV credit balances for longer than fourteen days without written authorization. Criteria: An institution may not hold a credit balance, which is caused by federal student financial aid funds, on a student?s account for more than fourteen days without written authorization from the student. Cause: Miscommunication between the cashier, student financial aid office, and accounts payable clerk caused a delay with issuing the credit balance refund check to the student. Possible Asserted Effect: The Title IV credit balances were not returned timely to the students. Repeat Finding: There was not a similar finding in the previous year. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: The credit balances were returned to all three students in question before the end of the academic year. Communication should be improved between the offices involved in the disbursement process to ensure that credit balances are refunded timely. Management Response: The credit balances were returned to the students in question before the end of the academic year. Several changes in staffing have occurred. The financial aid office will follow-up with the cashier and accounts payable clerk to ensure that the credit balance refunds requested are processed timely.
FINDING 2022-001 ? Material Adjustments Condition Found: During the course of the audit for the University, we proposed journal entries to adjust accounts payable due to an amount owed at year-end to a vendor who was assisting with determining the employee retention credit among other expenses that should have been recorded as accounts payable, fixed assets for amounts that were originally expensed to repair and maintenance, and we also adjusted deferred revenue, scholarship expense, and grant income to the correct balances. Criteria: Based on professional standards, identification by an auditor of a material misstatement in the financial statements under audit that was not initially identified by the entity's internal control is a strong indicator of a material weakness. Cause: This occurred because the University did not identify and make all necessary adjustments to the financial statements before the audit began. Over the past several years, the number of adjustments we have had to make has been decreasing, and we applaud the accounting staff and management for this. We also understand that there were some extenuating circumstances. However, unfortunately, these circumstances do not rectify the situation of the trial balance not being correct when presented for audit. Possible Asserted Effect: Because the aforementioned adjustments would have materially misstated the statement of financial position and statement of activities, we believe that this matter is a material weakness in the controls and practices of the University. Repeat Finding: A similar finding was reported in the prior year?s audit as Finding 2021-001. Recommendation: We recommend that the University develop and implement procedures to properly record transactions before the records are submitted for audit. We understand from the accounting staff and management that changes have already occurred to rectify this going forward. Management Response: We will continue to increase the review of general ledger entries and strive to record all necessary adjustments prior to the beginning of the audit. Also, the processing flow of certain transactions has been changed so that the accounting department is the first to engage these transactions. Finally, an effort is being made to close the books monthly so that events are still fresh when that takes place.
FINDING 2022-002 ? Verification Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Pell Grant Program ALN and Program Expenditure: 84.063 ($339,284) Award Number: P063P211726 Federal Award Year: July 1, 2021 to June 30, 2022 Questioned Costs: $300 Condition Found: The information on the verification worksheet and tax transcript for Parents? AGI, Parents? Taxes Paid, Parent 1 and 2 Earned Income, and Parents? Military/Clergy Housing Allowance did not agree to the amounts reported on the ISIR for one of the twenty-five students sampled. Criteria: If a student is in the V1 verification group, the following items must be verified: adjusted gross income, U.S. income taxes paid, untaxed portions of IRA distributions, untaxed portions or pensions, IRA deductions and payments, tax exempt interest income, education credits, household size, the number in college, SNAP benefits, and child support paid. If discrepancies are found when reviewing these documents and amounts, the information should be updated and the student?s financial aid eligibility should be recalculated. Cause: For the student in question, the financial aid office requested and collected the required documentation and information. However, the financial aid office did not make the necessary corrections to the parents income and recalculate the student?s financial aid eligibility. Possible Asserted Effect: The Expected Family Contribution could change which could cause an over or under award of federal aid, especially the Federal Pell Grant. The student in question received $300 of Federal Pell Grant funds that the student was not eligible to receive. Repeat Finding: There was not a similar finding in the previous year. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: The Financial Aid Office should correct the income items in question and recalculate the EFC. The new EFC and Pell award should be calculated. $300 in Pell Grant funds should be returned to the Department of Education. Management Response: The Financial Aid Office updated the income items and recalculated the EFC for the student in question. The amount of Pell the student was eligible to receive was calculated based on the new EFC. $300 was returned to the Department of Education in August 2022
FINDING 2022-003 ? Authorization to Hold Credit Balances Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Pell Grant Program Federal Direct Loan Program Federal Supplemental Educational Opportunity Grant ALN and Program Expenditure: 84.063 ($339,284) 84.268 ($506,590) 84.007 ($ 10,703) Award Number: P063P211726 P268K211726 P007A216494 Federal Award Year: July 1, 2021 to June 30, 2022 Questioned Costs: $-0- Condition Found: For three of the twenty-five students in our sample, the University held Title IV credit balances for longer than fourteen days without written authorization. Criteria: An institution may not hold a credit balance, which is caused by federal student financial aid funds, on a student?s account for more than fourteen days without written authorization from the student. Cause: Miscommunication between the cashier, student financial aid office, and accounts payable clerk caused a delay with issuing the credit balance refund check to the student. Possible Asserted Effect: The Title IV credit balances were not returned timely to the students. Repeat Finding: There was not a similar finding in the previous year. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: The credit balances were returned to all three students in question before the end of the academic year. Communication should be improved between the offices involved in the disbursement process to ensure that credit balances are refunded timely. Management Response: The credit balances were returned to the students in question before the end of the academic year. Several changes in staffing have occurred. The financial aid office will follow-up with the cashier and accounts payable clerk to ensure that the credit balance refunds requested are processed timely.
FINDING 2022-001 ? Material Adjustments Condition Found: During the course of the audit for the University, we proposed journal entries to adjust accounts payable due to an amount owed at year-end to a vendor who was assisting with determining the employee retention credit among other expenses that should have been recorded as accounts payable, fixed assets for amounts that were originally expensed to repair and maintenance, and we also adjusted deferred revenue, scholarship expense, and grant income to the correct balances. Criteria: Based on professional standards, identification by an auditor of a material misstatement in the financial statements under audit that was not initially identified by the entity's internal control is a strong indicator of a material weakness. Cause: This occurred because the University did not identify and make all necessary adjustments to the financial statements before the audit began. Over the past several years, the number of adjustments we have had to make has been decreasing, and we applaud the accounting staff and management for this. We also understand that there were some extenuating circumstances. However, unfortunately, these circumstances do not rectify the situation of the trial balance not being correct when presented for audit. Possible Asserted Effect: Because the aforementioned adjustments would have materially misstated the statement of financial position and statement of activities, we believe that this matter is a material weakness in the controls and practices of the University. Repeat Finding: A similar finding was reported in the prior year?s audit as Finding 2021-001. Recommendation: We recommend that the University develop and implement procedures to properly record transactions before the records are submitted for audit. We understand from the accounting staff and management that changes have already occurred to rectify this going forward. Management Response: We will continue to increase the review of general ledger entries and strive to record all necessary adjustments prior to the beginning of the audit. Also, the processing flow of certain transactions has been changed so that the accounting department is the first to engage these transactions. Finally, an effort is being made to close the books monthly so that events are still fresh when that takes place.
FINDING 2022-003 ? Authorization to Hold Credit Balances Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Pell Grant Program Federal Direct Loan Program Federal Supplemental Educational Opportunity Grant ALN and Program Expenditure: 84.063 ($339,284) 84.268 ($506,590) 84.007 ($ 10,703) Award Number: P063P211726 P268K211726 P007A216494 Federal Award Year: July 1, 2021 to June 30, 2022 Questioned Costs: $-0- Condition Found: For three of the twenty-five students in our sample, the University held Title IV credit balances for longer than fourteen days without written authorization. Criteria: An institution may not hold a credit balance, which is caused by federal student financial aid funds, on a student?s account for more than fourteen days without written authorization from the student. Cause: Miscommunication between the cashier, student financial aid office, and accounts payable clerk caused a delay with issuing the credit balance refund check to the student. Possible Asserted Effect: The Title IV credit balances were not returned timely to the students. Repeat Finding: There was not a similar finding in the previous year. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: The credit balances were returned to all three students in question before the end of the academic year. Communication should be improved between the offices involved in the disbursement process to ensure that credit balances are refunded timely. Management Response: The credit balances were returned to the students in question before the end of the academic year. Several changes in staffing have occurred. The financial aid office will follow-up with the cashier and accounts payable clerk to ensure that the credit balance refunds requested are processed timely.