FAC Explorer

Audit 2445

FY End
2023-05-31
Total Expended
$8.96M
Findings
6
Programs
7
Organization: Union College (NE)
Year: 2023 Accepted: 2023-11-07
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1310 2023-002 Significant Deficiency - N
1311 2023-002 Significant Deficiency - N
1312 2023-003 Significant Deficiency - E
577752 2023-002 Significant Deficiency - N
577753 2023-002 Significant Deficiency - N
577754 2023-003 Significant Deficiency - E

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $6.44M Yes 0
84.063 Federal Pell Grant Program $1.07M Yes 0
84.038 Federal Perkins Loan Program - Beginning Balance $909,201 Yes 1
93.364 Nursing Student Loans $263,182 Yes 0
84.033 Federal Work-Study Program $145,190 Yes 1
84.007 Federal Supplemental Educational Opportunity Grants $138,396 Yes 0
84.038 Federal Perkins Loan Program - Loans Issued $0 Yes 1

Contacts

Name Title Type
T5N2GAGKKZN3 Steve Trana Auditee
4024862502 Deirdre Hodgson Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: 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 are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The College has elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The purpose of the schedule of expenditures of federal awards (the Schedule) is to present a summary of those activities of Union College that have been financed by the United States government (federal awards). Federal awards received directly from federal agencies are included in the Schedule.
Title: FEDERAL STUDENT LOAN PROGRAMS Accounting Policies: 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 are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The College has elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The federal student loan programs listed subsequently are administered directly by Union College, and balances and transactions relating to these programs are included in Union College’s basic financial statements. Loans outstanding at the beginning of the year and loans made during the year are included in the federal expenditures presented in the Schedule. The balance of loans outstanding at May 31, 2023 consists of: Grant Description: Federal Perkins Loan Program Assistance Listing Number: 84.038 Amount Outstanding: $803,300 Grant Description: Federal Nursing Loan Program Assistance Listing Number: 93.364 Amount Outstanding: $248,089

Finding Details

Finding 2023-002
Federal Agency: U.S. Department of Education Federal Program Title: Student Financial Aid ALN Number: Student Financial Aid Cluster Award Period: June 01, 2022 through May 31, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: The Code of Federal Regulations, 34 CFR 674.16 states that before an institution makes its first disbursement to a student, the student shall sign the promissory note. Condition: Perkins Promissory Note - During our testing of the Student Financial Aid Cluster, we noted that 3 students out of 65 tested in the Perkins loan program could not be supported as having completed a promissory note. Questioned Costs: None Context: Many of the missing promissory notes were old and could not be located in paper or electronic files. Cause: The College did not have a process in place to ensure promissory notes were appropriately retained either in paper or electronic format. Effect: The College cannot provide documentation showing proper completion of promissory note as required by DOE requirements. Repeat finding: No Recommendation: We recommend that the College put a procedure in place to ensure that all students have a promissory note prior to disbursing of funds. Also recommend a procedure be put in place to ensure proper record retention documenting the completion of promissory note. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2023-002
Federal Agency: U.S. Department of Education Federal Program Title: Student Financial Aid ALN Number: Student Financial Aid Cluster Award Period: June 01, 2022 through May 31, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: The Code of Federal Regulations, 34 CFR 674.16 states that before an institution makes its first disbursement to a student, the student shall sign the promissory note. Condition: Perkins Promissory Note - During our testing of the Student Financial Aid Cluster, we noted that 3 students out of 65 tested in the Perkins loan program could not be supported as having completed a promissory note. Questioned Costs: None Context: Many of the missing promissory notes were old and could not be located in paper or electronic files. Cause: The College did not have a process in place to ensure promissory notes were appropriately retained either in paper or electronic format. Effect: The College cannot provide documentation showing proper completion of promissory note as required by DOE requirements. Repeat finding: No Recommendation: We recommend that the College put a procedure in place to ensure that all students have a promissory note prior to disbursing of funds. Also recommend a procedure be put in place to ensure proper record retention documenting the completion of promissory note. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2023-003
Federal Agency: U.S. Department of Education Federal Program Title: Student Financial Aid ALN Number: Student Financial Aid Cluster Award Period: June 01, 2022 through May 31, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: Per the Code of Federal Regulations, 34 CFR 673.5, students may not be awarded need based aid in excess of their calculated need. In addition, 34 CFR 685.203(j) states that in no case may a loan amount exceed the student’s estimated cost of attendance for the period of enrollment for which the loan is intended less the student’s estimated financial assistance for that period and in the case of Direct Subsidized Loans, the borrower’s expected family contribution for that period. Condition: Based on our testing, we noted one student who was disbursed $817 more than they were awarded. Questioned Costs: $817 Context: One student was disbursed more Title IV aid than they were awarded. Cause: The College disbursed one students Title IV aid that was greater than their awarded amount. Effect: Students may be awarded need based aid in excess of their calculated need. Repeat finding: No Recommendation: We recommend the College implement policies to review all student award packages at the start of the academic year to ensure no overawards exist. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2023-002
Federal Agency: U.S. Department of Education Federal Program Title: Student Financial Aid ALN Number: Student Financial Aid Cluster Award Period: June 01, 2022 through May 31, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: The Code of Federal Regulations, 34 CFR 674.16 states that before an institution makes its first disbursement to a student, the student shall sign the promissory note. Condition: Perkins Promissory Note - During our testing of the Student Financial Aid Cluster, we noted that 3 students out of 65 tested in the Perkins loan program could not be supported as having completed a promissory note. Questioned Costs: None Context: Many of the missing promissory notes were old and could not be located in paper or electronic files. Cause: The College did not have a process in place to ensure promissory notes were appropriately retained either in paper or electronic format. Effect: The College cannot provide documentation showing proper completion of promissory note as required by DOE requirements. Repeat finding: No Recommendation: We recommend that the College put a procedure in place to ensure that all students have a promissory note prior to disbursing of funds. Also recommend a procedure be put in place to ensure proper record retention documenting the completion of promissory note. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2023-002
Federal Agency: U.S. Department of Education Federal Program Title: Student Financial Aid ALN Number: Student Financial Aid Cluster Award Period: June 01, 2022 through May 31, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: The Code of Federal Regulations, 34 CFR 674.16 states that before an institution makes its first disbursement to a student, the student shall sign the promissory note. Condition: Perkins Promissory Note - During our testing of the Student Financial Aid Cluster, we noted that 3 students out of 65 tested in the Perkins loan program could not be supported as having completed a promissory note. Questioned Costs: None Context: Many of the missing promissory notes were old and could not be located in paper or electronic files. Cause: The College did not have a process in place to ensure promissory notes were appropriately retained either in paper or electronic format. Effect: The College cannot provide documentation showing proper completion of promissory note as required by DOE requirements. Repeat finding: No Recommendation: We recommend that the College put a procedure in place to ensure that all students have a promissory note prior to disbursing of funds. Also recommend a procedure be put in place to ensure proper record retention documenting the completion of promissory note. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2023-003
Federal Agency: U.S. Department of Education Federal Program Title: Student Financial Aid ALN Number: Student Financial Aid Cluster Award Period: June 01, 2022 through May 31, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: Per the Code of Federal Regulations, 34 CFR 673.5, students may not be awarded need based aid in excess of their calculated need. In addition, 34 CFR 685.203(j) states that in no case may a loan amount exceed the student’s estimated cost of attendance for the period of enrollment for which the loan is intended less the student’s estimated financial assistance for that period and in the case of Direct Subsidized Loans, the borrower’s expected family contribution for that period. Condition: Based on our testing, we noted one student who was disbursed $817 more than they were awarded. Questioned Costs: $817 Context: One student was disbursed more Title IV aid than they were awarded. Cause: The College disbursed one students Title IV aid that was greater than their awarded amount. Effect: Students may be awarded need based aid in excess of their calculated need. Repeat finding: No Recommendation: We recommend the College implement policies to review all student award packages at the start of the academic year to ensure no overawards exist. Views of responsible officials: There is no disagreement with the audit finding.