Audit 2492

FY End

2023-06-30

Total Expended

$3.88M

Findings

Programs

Organization: Life Pacific University (CA)

Year: 2023 Accepted: 2023-11-07

Auditor: Capincrouse LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID	Ref	Severity	Repeat	Requirement
1338	2023-002	Material Weakness	-	N
1339	2023-002	Material Weakness	-	N
1340	2023-002	Material Weakness	-	N
1341	2023-002	Material Weakness	-	N
577780	2023-002	Material Weakness	-	N
577781	2023-002	Material Weakness	-	N
577782	2023-002	Material Weakness	-	N
577783	2023-002	Material Weakness	-	N

Programs

ALN	Program	Spent	Major	Findings
84.268	Federal Direct Student Loans	$2.80M	Yes	1
84.063	Federal Pell Grant Program	$1.03M	Yes	1
84.007	Federal Supplemental Educational Opportunity Grants	$31,185	Yes	1
84.033	Federal Work-Study Program	$30,084	Yes	1

Contacts

Name	Title	Type
JD7WN8J5DTC5	Rachel Au	Auditee
9095995433	Robert J. Faulk, CPA	Auditor
No contacts on file

Notes to SEFA

Title: RELATIONSHIP TO FINANCIAL STATEMENTS Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Life Pacific University under programs of the federal government for the year ended June 30, 2023. The information in the schedule is presented in accordance with the requirements of the 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 financial statements. Expenditures in 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. 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 Life Pacific University is required to match certain federal assistance, as defined by the grant agreements, no such matching has been included as expenditures in the schedule. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate See the Notes to the SEFA for chart/table

Title: SUBRECIPIENTS, NON-CASH ASSISTANCE, FEDERAL INSURANCE, LOANS, AND LOAN GUARANTEES Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Life Pacific University under programs of the federal government for the year ended June 30, 2023. The information in the schedule is presented in accordance with the requirements of the 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 financial statements. Expenditures in 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. 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 Life Pacific University is required to match certain federal assistance, as defined by the grant agreements, no such matching has been included as expenditures in the schedule. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate Life Pacific University did not provide any federal funds to subrecipients nor did they receive any federal non-cash assistance, insurance, loans, or loan guarantees.

Finding Details

Finding 2023-002

Gramm-Leach-Bliley Act (GLBA) Compliance Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063, 84.007, and 84.033 - Student Financial Assistance Cluster Federal Award Identification #: 2022-2023 Financial Aid Year Condition: Life Pacific University did not sufficiently comply with the updated requirements of GLBA. Criteria: 16 CFR 314.3, 16 CFR 314.4 Questioned Costs: $0 Context: Life Pacific University has not completed the following components in light of the updated GLBA regulations. - designated a single individual responsible for the information security program - created a written information security program - implemented multi-factor authentication on systems containing personally identifiable information (PII) - implemented continuous monitoring, such as penetration testing and vulnerability scanning - implemented sufficient vendor management policies and reviews - implemented an incident response plan - provided a written, annual report to the board. Cause: Life Pacific University has experienced turnover in the information technology department during the time when the updated regulations went into effect. Effect: Life Pacific University has not adequately addressed the updated requirements of GLBA, which may lead to unintended exposure of student information to security risks. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend Life Pacific University allocate sufficient resources to address all requirements of GLBA. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Finding 2023-002