FAC Explorer

Audit 22881

FY End
2022-06-30
Total Expended
$58.27M
Findings
2
Programs
8
Organization: Salus University and Its Foundation (PA)
Year: 2022 Accepted: 2023-01-29
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
20667 2022-001 Significant Deficiency Yes N
597109 2022-001 Significant Deficiency Yes N

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $45.03M Yes 1
93.342 Health Professions Student Loans, Including Primary Care Loans/loans for Disadvantaged Students $7.63M Yes 0
84.038 Federal Perkins Loan Program $3.11M Yes 0
84.425 Education Stabilization Fund $497,053 Yes 0
93.867 Vision Research $380,672 - 0
84.033 Federal Work-Study Program $344,478 Yes 0
84.325 Special Education - Personnel Development to Improve Services and Results for Children with Disabilities $226,381 - 0
84.129 Rehabilitation Long-Term Training $157,059 - 0

Contacts

Name Title Type
KPVBKSDMPJ95 Maureen Owens Auditee
2157801245 David M. Jacobson, CPA Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: BASIS OF PRESENTATIONThe accompanying Schedule of Expenditures of Federal and State Awards (the Schedule) presents a summary of those activities of Salus University and Its Foundation (the University) which relate to federal or state government awards. The Schedule presents only a selected portion of the activities of the University and is not intended to present either the financial position, or changes in net assets or cash flows of the University. 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 the Schedule may differ from amounts presented in or used in the preparation of the basic consolidated financial statements.BASIS OF ACCOUNTINGExpenditures for direct costs are recognized as incurred using the accrual method of accounting.The University uses an indirect cost rate to charge facility and administrative costs to particular sponsored projects. During the year ended June 30, 2022, the University charged facility and administrative costs at the Department of Health and Human services approved fixed rate for federal awards and the grant approved fixed rate for state awards. De Minimis Rate Used: N Rate Explanation: The University has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. FEDERAL PERKINS LOAN PROGRAM (84.038) - Balances outstanding at the end of the audit period were $3,111,927. HEALTH PROFESSIONS STUDENT LOANS, INCLUDING PRIMARY CARE LOANS/LOANS FOR DISADVANTAGED STUDENTS (93.342) - Balances outstanding at the end of the audit period were $6,911,841.
Title: PREVENTION OF BLINDNESS Accounting Policies: BASIS OF PRESENTATIONThe accompanying Schedule of Expenditures of Federal and State Awards (the Schedule) presents a summary of those activities of Salus University and Its Foundation (the University) which relate to federal or state government awards. The Schedule presents only a selected portion of the activities of the University and is not intended to present either the financial position, or changes in net assets or cash flows of the University. 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 the Schedule may differ from amounts presented in or used in the preparation of the basic consolidated financial statements.BASIS OF ACCOUNTINGExpenditures for direct costs are recognized as incurred using the accrual method of accounting.The University uses an indirect cost rate to charge facility and administrative costs to particular sponsored projects. During the year ended June 30, 2022, the University charged facility and administrative costs at the Department of Health and Human services approved fixed rate for federal awards and the grant approved fixed rate for state awards. De Minimis Rate Used: N Rate Explanation: The University has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Revenues and expenditures for the period July 1, 2021 to June 30, 2022 relating to the Prevention of Blindness contract included in the Schedule are as follows: Revenues $68,964; Expenditures: Salary and Fringe $31,909, Consultants $23,100, Supplies and Materials $8,462, Indirect Costs $5,493, Total Expenditures $68,964

Finding Details

Finding 2022-001
2022-001 ? National Student Loan Data System (NSLDS) Reporting Federal Agency: U.S. Department of Education Federal Program Title: Student Financial Assistance Cluster Federal Assistance Listing Number: 84.268 Award Period: 7/1/2021 ? 6/30/2022 Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Criteria or Specific Requirement: Per U.S. Department of Education (ED) regulations, all schools participating (or approved to participate) in the Federal Student Aid programs must have an arrangement to report student enrollment data to the NSLDS through a roster file. The school is required to report enrollment status at both the school and program level. The school is required to report changes in the student?s enrollment status, the effective date of the status and an anticipated completion date. An academic program is defined as the combination of the school?s Office of Postsecondary Education Identification (OPEID) number and the program?s Classification of Instructional Program (CIP) code, credential level, and published program length. ED requires the University to report changes in enrollment status and indicate the date that the changes occurred (34 CFR 685.309). Changes in enrollment status must be reported within 30 days. However, if a roster file is expected within 60 days, the school may provide the date on that roster file. In addition, regulations require that an institution make necessary corrections and return the records within 10 days for any roster files that don?t pass the NSLDS enrollment reporting edits. ED requires the University to report changes in enrollment status within 30 or 60 days that the University determined the changes occurred (34 CFR 682.610). Condition: Certain students? enrollment information was not reported accurately or timely to the NSLDS. Questioned Costs: None Context: During our testing, we noted the following: ? Three students, out of a sample of 40 students tested, were not reported to the campus-level record in the NSLDS in a timely manner. ? One student of the three noted above, out of a sample of 40 students tested, was not reported to the campus-level record in the NSLDS every 60 days. At a minimum, schools are required to certify enrollment every 60 days. Cause: The University uses a third-party servicer to submit their enrollment reports to the NSLDS. Occasionally, the third-party servicer incorrectly communicates information to the NSLDS which results in discrepancies between the University's system and the NSLDS. There are also times the University updates certain information on students after reports are sent to the third-party servicer and these changes are not being captured on the reporting to the third-party servicer to the NSLDS. The University has the ultimate responsibility to ensure that reporting is correct. Effect: Inaccurate reporting to the NSLDS can result in incorrect determination of when the students? grace period should begin. Repeat Finding: Yes, 2021-002. Auditors? Recommendation: We recommend the University evaluate its procedures and review policies in overseeing submissions to the NSLDS completed by the third-party servicer. Additionally, we recommend the University review its policies and procedures on reporting enrollment information to the NSLDS to ensure that all relevant information is being captured and reported timely in accordance with applicable regulations. Views of Responsible Officials: See the corrective action plan.
Finding 2022-001
2022-001 ? National Student Loan Data System (NSLDS) Reporting Federal Agency: U.S. Department of Education Federal Program Title: Student Financial Assistance Cluster Federal Assistance Listing Number: 84.268 Award Period: 7/1/2021 ? 6/30/2022 Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Criteria or Specific Requirement: Per U.S. Department of Education (ED) regulations, all schools participating (or approved to participate) in the Federal Student Aid programs must have an arrangement to report student enrollment data to the NSLDS through a roster file. The school is required to report enrollment status at both the school and program level. The school is required to report changes in the student?s enrollment status, the effective date of the status and an anticipated completion date. An academic program is defined as the combination of the school?s Office of Postsecondary Education Identification (OPEID) number and the program?s Classification of Instructional Program (CIP) code, credential level, and published program length. ED requires the University to report changes in enrollment status and indicate the date that the changes occurred (34 CFR 685.309). Changes in enrollment status must be reported within 30 days. However, if a roster file is expected within 60 days, the school may provide the date on that roster file. In addition, regulations require that an institution make necessary corrections and return the records within 10 days for any roster files that don?t pass the NSLDS enrollment reporting edits. ED requires the University to report changes in enrollment status within 30 or 60 days that the University determined the changes occurred (34 CFR 682.610). Condition: Certain students? enrollment information was not reported accurately or timely to the NSLDS. Questioned Costs: None Context: During our testing, we noted the following: ? Three students, out of a sample of 40 students tested, were not reported to the campus-level record in the NSLDS in a timely manner. ? One student of the three noted above, out of a sample of 40 students tested, was not reported to the campus-level record in the NSLDS every 60 days. At a minimum, schools are required to certify enrollment every 60 days. Cause: The University uses a third-party servicer to submit their enrollment reports to the NSLDS. Occasionally, the third-party servicer incorrectly communicates information to the NSLDS which results in discrepancies between the University's system and the NSLDS. There are also times the University updates certain information on students after reports are sent to the third-party servicer and these changes are not being captured on the reporting to the third-party servicer to the NSLDS. The University has the ultimate responsibility to ensure that reporting is correct. Effect: Inaccurate reporting to the NSLDS can result in incorrect determination of when the students? grace period should begin. Repeat Finding: Yes, 2021-002. Auditors? Recommendation: We recommend the University evaluate its procedures and review policies in overseeing submissions to the NSLDS completed by the third-party servicer. Additionally, we recommend the University review its policies and procedures on reporting enrollment information to the NSLDS to ensure that all relevant information is being captured and reported timely in accordance with applicable regulations. Views of Responsible Officials: See the corrective action plan.