Audit 22803

FY End
2022-06-30
Total Expended
$25.92M
Findings
6
Programs
6
Organization: Central Methodist University (MO)
Year: 2022 Accepted: 2023-03-09

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
24400 2022-001 Significant Deficiency Yes L
24401 2022-001 Significant Deficiency Yes L
24402 2022-001 Significant Deficiency Yes L
600842 2022-001 Significant Deficiency Yes L
600843 2022-001 Significant Deficiency Yes L
600844 2022-001 Significant Deficiency Yes L

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $14.51M Yes 0
84.063 Federal Pell Grant Program $5.88M Yes 0
84.425 Education Stabilization Fund $284,076 Yes 1
84.007 Federal Supplemental Educational Opportunity Grants $198,550 Yes 0
84.033 Federal Work-Study Program $173,656 Yes 0
84.038 Federal Perkins Loan $94,155 Yes 0

Contacts

Name Title Type
UCG6EBGY8Y66 Julee Sherman Auditee
6602483391 Amanda Schultz Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: The schedule of expenditures of federal awards includes only the current year federal grant activity of Central Methodist University and is presented on the accrual basis of accounting. 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. Under these standards, Federal Pell Grant Program awards are reported as expenditures, whereas under U. S. generally accepted accounting principles they are not reported in the Universitys statement of activities as expenses or financial aid. New loan advances under the Federal Direct Student Loans Program represent the amount of such loans processed by the University for the year and are not reportable as transactions in the Universitys financial statements under U.S. generally accepted accounting principles. Other amounts presented in this schedule as expenditures may differ from amounts presented in, or used in the preparation of, the basic financial statements, although such differences are not material to the basic financial statements. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. FEDERAL DIRECT STUDENT LOANS (84.268) - Balances outstanding at the end of the audit period were 14507611. FEDERAL PERKINS LOAN (84.038) - Balances outstanding at the end of the audit period were 94155.

Finding Details

U.S. Department of Education Finding 2022-001 (continuing finding): Higher Education Emergency Relief Fund (HEERF) Reporting (significant deficiency) Statement of Condition: Per the Department of Education, quarterly institutional reports should only include expenditures for the quarter if the funds have been drawn down from G5 and disbursed during the quarter. The University publicly posted the required quarterly institutional reports for HEERF using actual expenditures, rather than actual draws, during the quarter. No other issues were noted with the accuracy of the reports. However, the University also did not post all of the required information in the student reports for HEERF. Criteria: The Department of Education requires that institutions publicly post the required reports to the institution?s website that only include the expenditures drawn down from G5 and disbursed during the quarter. It also requires that certain information be publicly posted in the student reports. Effect of Condition: As the University posted actual expenditures, rather than actual draws, during the quarter in the institutional reports, and as the University did not post all of the required information in the student reports, the University was not in compliance with the HEERF reporting requirements. Cause of Condition: The errors were due to a lack of clarity/uncertainty with the HEERF reporting requirements. Recommendation: We recommend the University develop and implement policies and procedures to ensure the reports are accurate. Management?s Response: Management agrees and will correct the HEERF reports accordingly.
U.S. Department of Education Finding 2022-001 (continuing finding): Higher Education Emergency Relief Fund (HEERF) Reporting (significant deficiency) Statement of Condition: Per the Department of Education, quarterly institutional reports should only include expenditures for the quarter if the funds have been drawn down from G5 and disbursed during the quarter. The University publicly posted the required quarterly institutional reports for HEERF using actual expenditures, rather than actual draws, during the quarter. No other issues were noted with the accuracy of the reports. However, the University also did not post all of the required information in the student reports for HEERF. Criteria: The Department of Education requires that institutions publicly post the required reports to the institution?s website that only include the expenditures drawn down from G5 and disbursed during the quarter. It also requires that certain information be publicly posted in the student reports. Effect of Condition: As the University posted actual expenditures, rather than actual draws, during the quarter in the institutional reports, and as the University did not post all of the required information in the student reports, the University was not in compliance with the HEERF reporting requirements. Cause of Condition: The errors were due to a lack of clarity/uncertainty with the HEERF reporting requirements. Recommendation: We recommend the University develop and implement policies and procedures to ensure the reports are accurate. Management?s Response: Management agrees and will correct the HEERF reports accordingly.
U.S. Department of Education Finding 2022-001 (continuing finding): Higher Education Emergency Relief Fund (HEERF) Reporting (significant deficiency) Statement of Condition: Per the Department of Education, quarterly institutional reports should only include expenditures for the quarter if the funds have been drawn down from G5 and disbursed during the quarter. The University publicly posted the required quarterly institutional reports for HEERF using actual expenditures, rather than actual draws, during the quarter. No other issues were noted with the accuracy of the reports. However, the University also did not post all of the required information in the student reports for HEERF. Criteria: The Department of Education requires that institutions publicly post the required reports to the institution?s website that only include the expenditures drawn down from G5 and disbursed during the quarter. It also requires that certain information be publicly posted in the student reports. Effect of Condition: As the University posted actual expenditures, rather than actual draws, during the quarter in the institutional reports, and as the University did not post all of the required information in the student reports, the University was not in compliance with the HEERF reporting requirements. Cause of Condition: The errors were due to a lack of clarity/uncertainty with the HEERF reporting requirements. Recommendation: We recommend the University develop and implement policies and procedures to ensure the reports are accurate. Management?s Response: Management agrees and will correct the HEERF reports accordingly.
U.S. Department of Education Finding 2022-001 (continuing finding): Higher Education Emergency Relief Fund (HEERF) Reporting (significant deficiency) Statement of Condition: Per the Department of Education, quarterly institutional reports should only include expenditures for the quarter if the funds have been drawn down from G5 and disbursed during the quarter. The University publicly posted the required quarterly institutional reports for HEERF using actual expenditures, rather than actual draws, during the quarter. No other issues were noted with the accuracy of the reports. However, the University also did not post all of the required information in the student reports for HEERF. Criteria: The Department of Education requires that institutions publicly post the required reports to the institution?s website that only include the expenditures drawn down from G5 and disbursed during the quarter. It also requires that certain information be publicly posted in the student reports. Effect of Condition: As the University posted actual expenditures, rather than actual draws, during the quarter in the institutional reports, and as the University did not post all of the required information in the student reports, the University was not in compliance with the HEERF reporting requirements. Cause of Condition: The errors were due to a lack of clarity/uncertainty with the HEERF reporting requirements. Recommendation: We recommend the University develop and implement policies and procedures to ensure the reports are accurate. Management?s Response: Management agrees and will correct the HEERF reports accordingly.
U.S. Department of Education Finding 2022-001 (continuing finding): Higher Education Emergency Relief Fund (HEERF) Reporting (significant deficiency) Statement of Condition: Per the Department of Education, quarterly institutional reports should only include expenditures for the quarter if the funds have been drawn down from G5 and disbursed during the quarter. The University publicly posted the required quarterly institutional reports for HEERF using actual expenditures, rather than actual draws, during the quarter. No other issues were noted with the accuracy of the reports. However, the University also did not post all of the required information in the student reports for HEERF. Criteria: The Department of Education requires that institutions publicly post the required reports to the institution?s website that only include the expenditures drawn down from G5 and disbursed during the quarter. It also requires that certain information be publicly posted in the student reports. Effect of Condition: As the University posted actual expenditures, rather than actual draws, during the quarter in the institutional reports, and as the University did not post all of the required information in the student reports, the University was not in compliance with the HEERF reporting requirements. Cause of Condition: The errors were due to a lack of clarity/uncertainty with the HEERF reporting requirements. Recommendation: We recommend the University develop and implement policies and procedures to ensure the reports are accurate. Management?s Response: Management agrees and will correct the HEERF reports accordingly.
U.S. Department of Education Finding 2022-001 (continuing finding): Higher Education Emergency Relief Fund (HEERF) Reporting (significant deficiency) Statement of Condition: Per the Department of Education, quarterly institutional reports should only include expenditures for the quarter if the funds have been drawn down from G5 and disbursed during the quarter. The University publicly posted the required quarterly institutional reports for HEERF using actual expenditures, rather than actual draws, during the quarter. No other issues were noted with the accuracy of the reports. However, the University also did not post all of the required information in the student reports for HEERF. Criteria: The Department of Education requires that institutions publicly post the required reports to the institution?s website that only include the expenditures drawn down from G5 and disbursed during the quarter. It also requires that certain information be publicly posted in the student reports. Effect of Condition: As the University posted actual expenditures, rather than actual draws, during the quarter in the institutional reports, and as the University did not post all of the required information in the student reports, the University was not in compliance with the HEERF reporting requirements. Cause of Condition: The errors were due to a lack of clarity/uncertainty with the HEERF reporting requirements. Recommendation: We recommend the University develop and implement policies and procedures to ensure the reports are accurate. Management?s Response: Management agrees and will correct the HEERF reports accordingly.