Audit 2416

FY End
2023-06-30
Total Expended
$1.29M
Findings
14
Programs
5
Organization: Calvary University (MO)
Year: 2023 Accepted: 2023-11-06

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
1283 2023-001 Material Weakness Yes P
1284 2023-002 - - N
1285 2023-001 Material Weakness Yes P
1286 2023-001 Material Weakness Yes P
1287 2023-001 Material Weakness Yes P
1288 2023-001 Material Weakness Yes P
1289 2023-001 Material Weakness Yes P
577725 2023-001 Material Weakness Yes P
577726 2023-002 - - N
577727 2023-001 Material Weakness Yes P
577728 2023-001 Material Weakness Yes P
577729 2023-001 Material Weakness Yes P
577730 2023-001 Material Weakness Yes P
577731 2023-001 Material Weakness Yes P

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $423,558 Yes 2
84.063 Federal Pell Grant Program $331,745 Yes 1
84.425 Education Stabilization Fund $319,404 - 1
84.007 Federal Supplemental Educational Opportunity Grants $10,703 Yes 1
84.033 Federal Work-Study Program $6,757 Yes 1

Contacts

Name Title Type
FZCMR5RKWAJ8 Tasha Young Auditee
8164256151 Richard Bili Auditor
No contacts on file

Notes to SEFA

Title: FEDERAL DIRECT STUDENT LOAN PROGRAM Accounting Policies: The schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Calvary University (the “University”), under programs of the federal government for the year ended June 30, 2023. 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”). Because the Schedule presents only a selected portion of the operations of the University, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the University. The University includes loans granted under the Federal Direct Student Loans Program as expenditures of federal awards. Federal Direct Student Loan Program balances are not included in the financial statements of the University. Expenditures reported on 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 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 grant agreements, no such matching has been included as expenditures in the Schedule. De Minimis Rate Used: N Rate Explanation: A cost rate was not used. Administrative costs are determined by Departement of Education formula. During the fiscal year ended June 30, 2023, the University processed the following amount of new loans under the Federal Direct Student Loan Program (which includes Subsidized Loans, Unsubsidized Direct Student Loans, and Parent's Loans for Undergraduate Students):
Title: FEDERAL PELL GRANT Accounting Policies: The schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Calvary University (the “University”), under programs of the federal government for the year ended June 30, 2023. 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”). Because the Schedule presents only a selected portion of the operations of the University, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the University. The University includes loans granted under the Federal Direct Student Loans Program as expenditures of federal awards. Federal Direct Student Loan Program balances are not included in the financial statements of the University. Expenditures reported on 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 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 grant agreements, no such matching has been included as expenditures in the Schedule. De Minimis Rate Used: N Rate Explanation: A cost rate was not used. Administrative costs are determined by Departement of Education formula. Included in the Federal Pell Grant expenditures is an administrative cost allowance of $410
Title: FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANT Accounting Policies: The schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Calvary University (the “University”), under programs of the federal government for the year ended June 30, 2023. 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”). Because the Schedule presents only a selected portion of the operations of the University, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the University. The University includes loans granted under the Federal Direct Student Loans Program as expenditures of federal awards. Federal Direct Student Loan Program balances are not included in the financial statements of the University. Expenditures reported on 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 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 grant agreements, no such matching has been included as expenditures in the Schedule. De Minimis Rate Used: N Rate Explanation: A cost rate was not used. Administrative costs are determined by Departement of Education formula. The following is included as Federal Supplemental Opportunity Grant ("FSEOG") expenditures: See Notes to the SEFA for Chart/Table
Title: FEDERAL WORK STUDY Accounting Policies: The schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Calvary University (the “University”), under programs of the federal government for the year ended June 30, 2023. 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”). Because the Schedule presents only a selected portion of the operations of the University, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the University. The University includes loans granted under the Federal Direct Student Loans Program as expenditures of federal awards. Federal Direct Student Loan Program balances are not included in the financial statements of the University. Expenditures reported on 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 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 grant agreements, no such matching has been included as expenditures in the Schedule. De Minimis Rate Used: N Rate Explanation: A cost rate was not used. Administrative costs are determined by Departement of Education formula. The following is included as Federal Work Study ("FW") expenditures: See Notes to the SEFA for Charts/Table

Finding Details

Condition Found: During our audit, we noted the following: The right-of-use asset and lease liability was not recorded. Repair and maintenance expenses were incorrectly capitalized. Grants given to students using HEERF funds was not correctly recorded. Allowance for uncollectible accounts receivable should have been adjusted. Criteria: The design and implementation of policies and procedures should be sufficient enough for the reconciliation of significant financial accounts and transaction classes to prevent and detect material misstatements in the financial statements. Cause: The end of year closing process was lacking the procedures necessary to identify the adjustments needed. Possible Asserted Effect: In fiscal year 2023, we proposed several adjustments to general ledger accounts. The potential effect could be significant to the financial statements since without these adjustments, the financial statements of the University would have been materially misleading. Repeat Finding :A similar finding was reported in the prior year’s audit as Finding 2022-001.Recommendation:We recommend that the University put in place necessary controls and procedures to ensure that all transactions, especially at year-end, are properly classified. 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.  The accountant will review the prior year adjusting journal entries made to ensure that if similar adjustments are needed that they are made before the audit begins. In addition, the CFO will review the end of year trial balance to make sure the general ledger accounts are correct.
Condition Found: A Federal Direct Loan exit interview was not completed by, nor were instructions sent to, students on how to complete an exit interview when the students graduated from the University or dropped below a halftime enrollment status. This omission occurred for seven of the eighteen students in our sample. Criteria: Federal Direct Loan recipients must receive exit interview counseling. If in-person counseling is not completed, the University may mail written counseling materials to a student’s last known address. Cause: Federal Direct Loan exit counseling was not provided when students withdrew from the University or dropped below a halftime enrollment status. This was an oversight on the part of the financial aid office staff. Effect The students were not aware of their responsibilities related to the Federal Direct Loan program, including repayment options and when repayment on the loan begins. 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: Federal Direct Loan exit interview information should be sent to the students in question. Procedures should be improved to ensure that Federal Direct exit interviews are completed or information is sent to a student when a student ceases attendance at the University or drops below a halftime enrollment status. Management Response: Federal Direct Loan exit interview information was sent to the students in question in August 2023. Procedures will be improved to ensure Federal Direct Loan exit interviews are completed or information is sent to students when they cease enrollment at the University.
Condition Found: During our audit, we noted the following: The right-of-use asset and lease liability was not recorded. Repair and maintenance expenses were incorrectly capitalized. Grants given to students using HEERF funds was not correctly recorded. Allowance for uncollectible accounts receivable should have been adjusted. Criteria: The design and implementation of policies and procedures should be sufficient enough for the reconciliation of significant financial accounts and transaction classes to prevent and detect material misstatements in the financial statements. Cause: The end of year closing process was lacking the procedures necessary to identify the adjustments needed. Possible Asserted Effect: In fiscal year 2023, we proposed several adjustments to general ledger accounts. The potential effect could be significant to the financial statements since without these adjustments, the financial statements of the University would have been materially misleading. Repeat Finding :A similar finding was reported in the prior year’s audit as Finding 2022-001.Recommendation:We recommend that the University put in place necessary controls and procedures to ensure that all transactions, especially at year-end, are properly classified. 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.  The accountant will review the prior year adjusting journal entries made to ensure that if similar adjustments are needed that they are made before the audit begins. In addition, the CFO will review the end of year trial balance to make sure the general ledger accounts are correct.
Condition Found: During our audit, we noted the following: The right-of-use asset and lease liability was not recorded. Repair and maintenance expenses were incorrectly capitalized. Grants given to students using HEERF funds was not correctly recorded. Allowance for uncollectible accounts receivable should have been adjusted. Criteria: The design and implementation of policies and procedures should be sufficient enough for the reconciliation of significant financial accounts and transaction classes to prevent and detect material misstatements in the financial statements. Cause: The end of year closing process was lacking the procedures necessary to identify the adjustments needed. Possible Asserted Effect: In fiscal year 2023, we proposed several adjustments to general ledger accounts. The potential effect could be significant to the financial statements since without these adjustments, the financial statements of the University would have been materially misleading. Repeat Finding :A similar finding was reported in the prior year’s audit as Finding 2022-001.Recommendation:We recommend that the University put in place necessary controls and procedures to ensure that all transactions, especially at year-end, are properly classified. 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.  The accountant will review the prior year adjusting journal entries made to ensure that if similar adjustments are needed that they are made before the audit begins. In addition, the CFO will review the end of year trial balance to make sure the general ledger accounts are correct.
Condition Found: During our audit, we noted the following: The right-of-use asset and lease liability was not recorded. Repair and maintenance expenses were incorrectly capitalized. Grants given to students using HEERF funds was not correctly recorded. Allowance for uncollectible accounts receivable should have been adjusted. Criteria: The design and implementation of policies and procedures should be sufficient enough for the reconciliation of significant financial accounts and transaction classes to prevent and detect material misstatements in the financial statements. Cause: The end of year closing process was lacking the procedures necessary to identify the adjustments needed. Possible Asserted Effect: In fiscal year 2023, we proposed several adjustments to general ledger accounts. The potential effect could be significant to the financial statements since without these adjustments, the financial statements of the University would have been materially misleading. Repeat Finding :A similar finding was reported in the prior year’s audit as Finding 2022-001.Recommendation:We recommend that the University put in place necessary controls and procedures to ensure that all transactions, especially at year-end, are properly classified. 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.  The accountant will review the prior year adjusting journal entries made to ensure that if similar adjustments are needed that they are made before the audit begins. In addition, the CFO will review the end of year trial balance to make sure the general ledger accounts are correct.
Condition Found: During our audit, we noted the following: The right-of-use asset and lease liability was not recorded. Repair and maintenance expenses were incorrectly capitalized. Grants given to students using HEERF funds was not correctly recorded. Allowance for uncollectible accounts receivable should have been adjusted. Criteria: The design and implementation of policies and procedures should be sufficient enough for the reconciliation of significant financial accounts and transaction classes to prevent and detect material misstatements in the financial statements. Cause: The end of year closing process was lacking the procedures necessary to identify the adjustments needed. Possible Asserted Effect: In fiscal year 2023, we proposed several adjustments to general ledger accounts. The potential effect could be significant to the financial statements since without these adjustments, the financial statements of the University would have been materially misleading. Repeat Finding :A similar finding was reported in the prior year’s audit as Finding 2022-001.Recommendation:We recommend that the University put in place necessary controls and procedures to ensure that all transactions, especially at year-end, are properly classified. 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.  The accountant will review the prior year adjusting journal entries made to ensure that if similar adjustments are needed that they are made before the audit begins. In addition, the CFO will review the end of year trial balance to make sure the general ledger accounts are correct.
Condition Found: During our audit, we noted the following: The right-of-use asset and lease liability was not recorded. Repair and maintenance expenses were incorrectly capitalized. Grants given to students using HEERF funds was not correctly recorded. Allowance for uncollectible accounts receivable should have been adjusted. Criteria: The design and implementation of policies and procedures should be sufficient enough for the reconciliation of significant financial accounts and transaction classes to prevent and detect material misstatements in the financial statements. Cause: The end of year closing process was lacking the procedures necessary to identify the adjustments needed. Possible Asserted Effect: In fiscal year 2023, we proposed several adjustments to general ledger accounts. The potential effect could be significant to the financial statements since without these adjustments, the financial statements of the University would have been materially misleading. Repeat Finding :A similar finding was reported in the prior year’s audit as Finding 2022-001.Recommendation:We recommend that the University put in place necessary controls and procedures to ensure that all transactions, especially at year-end, are properly classified. 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.  The accountant will review the prior year adjusting journal entries made to ensure that if similar adjustments are needed that they are made before the audit begins. In addition, the CFO will review the end of year trial balance to make sure the general ledger accounts are correct.
Condition Found: During our audit, we noted the following: The right-of-use asset and lease liability was not recorded. Repair and maintenance expenses were incorrectly capitalized. Grants given to students using HEERF funds was not correctly recorded. Allowance for uncollectible accounts receivable should have been adjusted. Criteria: The design and implementation of policies and procedures should be sufficient enough for the reconciliation of significant financial accounts and transaction classes to prevent and detect material misstatements in the financial statements. Cause: The end of year closing process was lacking the procedures necessary to identify the adjustments needed. Possible Asserted Effect: In fiscal year 2023, we proposed several adjustments to general ledger accounts. The potential effect could be significant to the financial statements since without these adjustments, the financial statements of the University would have been materially misleading. Repeat Finding :A similar finding was reported in the prior year’s audit as Finding 2022-001.Recommendation:We recommend that the University put in place necessary controls and procedures to ensure that all transactions, especially at year-end, are properly classified. 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.  The accountant will review the prior year adjusting journal entries made to ensure that if similar adjustments are needed that they are made before the audit begins. In addition, the CFO will review the end of year trial balance to make sure the general ledger accounts are correct.
Condition Found: A Federal Direct Loan exit interview was not completed by, nor were instructions sent to, students on how to complete an exit interview when the students graduated from the University or dropped below a halftime enrollment status. This omission occurred for seven of the eighteen students in our sample. Criteria: Federal Direct Loan recipients must receive exit interview counseling. If in-person counseling is not completed, the University may mail written counseling materials to a student’s last known address. Cause: Federal Direct Loan exit counseling was not provided when students withdrew from the University or dropped below a halftime enrollment status. This was an oversight on the part of the financial aid office staff. Effect The students were not aware of their responsibilities related to the Federal Direct Loan program, including repayment options and when repayment on the loan begins. 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: Federal Direct Loan exit interview information should be sent to the students in question. Procedures should be improved to ensure that Federal Direct exit interviews are completed or information is sent to a student when a student ceases attendance at the University or drops below a halftime enrollment status. Management Response: Federal Direct Loan exit interview information was sent to the students in question in August 2023. Procedures will be improved to ensure Federal Direct Loan exit interviews are completed or information is sent to students when they cease enrollment at the University.
Condition Found: During our audit, we noted the following: The right-of-use asset and lease liability was not recorded. Repair and maintenance expenses were incorrectly capitalized. Grants given to students using HEERF funds was not correctly recorded. Allowance for uncollectible accounts receivable should have been adjusted. Criteria: The design and implementation of policies and procedures should be sufficient enough for the reconciliation of significant financial accounts and transaction classes to prevent and detect material misstatements in the financial statements. Cause: The end of year closing process was lacking the procedures necessary to identify the adjustments needed. Possible Asserted Effect: In fiscal year 2023, we proposed several adjustments to general ledger accounts. The potential effect could be significant to the financial statements since without these adjustments, the financial statements of the University would have been materially misleading. Repeat Finding :A similar finding was reported in the prior year’s audit as Finding 2022-001.Recommendation:We recommend that the University put in place necessary controls and procedures to ensure that all transactions, especially at year-end, are properly classified. 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.  The accountant will review the prior year adjusting journal entries made to ensure that if similar adjustments are needed that they are made before the audit begins. In addition, the CFO will review the end of year trial balance to make sure the general ledger accounts are correct.
Condition Found: During our audit, we noted the following: The right-of-use asset and lease liability was not recorded. Repair and maintenance expenses were incorrectly capitalized. Grants given to students using HEERF funds was not correctly recorded. Allowance for uncollectible accounts receivable should have been adjusted. Criteria: The design and implementation of policies and procedures should be sufficient enough for the reconciliation of significant financial accounts and transaction classes to prevent and detect material misstatements in the financial statements. Cause: The end of year closing process was lacking the procedures necessary to identify the adjustments needed. Possible Asserted Effect: In fiscal year 2023, we proposed several adjustments to general ledger accounts. The potential effect could be significant to the financial statements since without these adjustments, the financial statements of the University would have been materially misleading. Repeat Finding :A similar finding was reported in the prior year’s audit as Finding 2022-001.Recommendation:We recommend that the University put in place necessary controls and procedures to ensure that all transactions, especially at year-end, are properly classified. 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.  The accountant will review the prior year adjusting journal entries made to ensure that if similar adjustments are needed that they are made before the audit begins. In addition, the CFO will review the end of year trial balance to make sure the general ledger accounts are correct.
Condition Found: During our audit, we noted the following: The right-of-use asset and lease liability was not recorded. Repair and maintenance expenses were incorrectly capitalized. Grants given to students using HEERF funds was not correctly recorded. Allowance for uncollectible accounts receivable should have been adjusted. Criteria: The design and implementation of policies and procedures should be sufficient enough for the reconciliation of significant financial accounts and transaction classes to prevent and detect material misstatements in the financial statements. Cause: The end of year closing process was lacking the procedures necessary to identify the adjustments needed. Possible Asserted Effect: In fiscal year 2023, we proposed several adjustments to general ledger accounts. The potential effect could be significant to the financial statements since without these adjustments, the financial statements of the University would have been materially misleading. Repeat Finding :A similar finding was reported in the prior year’s audit as Finding 2022-001.Recommendation:We recommend that the University put in place necessary controls and procedures to ensure that all transactions, especially at year-end, are properly classified. 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.  The accountant will review the prior year adjusting journal entries made to ensure that if similar adjustments are needed that they are made before the audit begins. In addition, the CFO will review the end of year trial balance to make sure the general ledger accounts are correct.
Condition Found: During our audit, we noted the following: The right-of-use asset and lease liability was not recorded. Repair and maintenance expenses were incorrectly capitalized. Grants given to students using HEERF funds was not correctly recorded. Allowance for uncollectible accounts receivable should have been adjusted. Criteria: The design and implementation of policies and procedures should be sufficient enough for the reconciliation of significant financial accounts and transaction classes to prevent and detect material misstatements in the financial statements. Cause: The end of year closing process was lacking the procedures necessary to identify the adjustments needed. Possible Asserted Effect: In fiscal year 2023, we proposed several adjustments to general ledger accounts. The potential effect could be significant to the financial statements since without these adjustments, the financial statements of the University would have been materially misleading. Repeat Finding :A similar finding was reported in the prior year’s audit as Finding 2022-001.Recommendation:We recommend that the University put in place necessary controls and procedures to ensure that all transactions, especially at year-end, are properly classified. 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.  The accountant will review the prior year adjusting journal entries made to ensure that if similar adjustments are needed that they are made before the audit begins. In addition, the CFO will review the end of year trial balance to make sure the general ledger accounts are correct.
Condition Found: During our audit, we noted the following: The right-of-use asset and lease liability was not recorded. Repair and maintenance expenses were incorrectly capitalized. Grants given to students using HEERF funds was not correctly recorded. Allowance for uncollectible accounts receivable should have been adjusted. Criteria: The design and implementation of policies and procedures should be sufficient enough for the reconciliation of significant financial accounts and transaction classes to prevent and detect material misstatements in the financial statements. Cause: The end of year closing process was lacking the procedures necessary to identify the adjustments needed. Possible Asserted Effect: In fiscal year 2023, we proposed several adjustments to general ledger accounts. The potential effect could be significant to the financial statements since without these adjustments, the financial statements of the University would have been materially misleading. Repeat Finding :A similar finding was reported in the prior year’s audit as Finding 2022-001.Recommendation:We recommend that the University put in place necessary controls and procedures to ensure that all transactions, especially at year-end, are properly classified. 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.  The accountant will review the prior year adjusting journal entries made to ensure that if similar adjustments are needed that they are made before the audit begins. In addition, the CFO will review the end of year trial balance to make sure the general ledger accounts are correct.