FAC Explorer

Audit 25152

FY End
2022-06-30
Total Expended
$44.48M
Findings
16
Programs
11
Organization: Newberry College (SC)
Year: 2022 Accepted: 2023-03-29
Auditor: Capincrouse LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
30455 2022-004 Significant Deficiency - N
30456 2022-004 Significant Deficiency - N
30457 2022-003 Significant Deficiency - E
30458 2022-005 - - L
30459 2022-005 - - L
30460 2022-005 - - L
30461 2022-006 - Yes L
30462 2022-002 Significant Deficiency - N
606897 2022-004 Significant Deficiency - N
606898 2022-004 Significant Deficiency - N
606899 2022-003 Significant Deficiency - E
606900 2022-005 - - L
606901 2022-005 - - L
606902 2022-005 - - L
606903 2022-006 - Yes L
606904 2022-002 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
10.766 Community Facilities Loans and Grants $26.02M Yes 1
84.268 Federal Direct Student Loans $8.98M Yes 1
84.063 Federal Pell Grant Program $3.31M Yes 2
84.425 Covid-19 Education Stabilization Fund Heerf - Student Aid Portion $2.29M Yes 1
84.425 Covid-19 Education Stabilization Fund Heerf - Institutional Portion $2.21M Yes 0
84.038 Federal Perkins Loan Program $869,468 Yes 1
81.041 State Energy Program $514,685 - 0
84.007 Federal Supplemental Educational Opportunity Grants $191,880 Yes 1
84.033 Federal Work-Study Program $81,335 Yes 1
97.036 Covid-19 Disaster Grants - Public Assistance (presidentially Declared Disasters) $10,589 - 0
45.129 Covid-19 Promotion of the Humanities_federal/state Partnership $5,000 - 0

Contacts

Name Title Type
Y9JKLN3659V4 Lisa Wicker Auditee
8033215235 Dan Campbell, 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 Newberry College (College) under programs of the federal government for the year ending June 30, 2022. 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 the College 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 table in SEFA Note 3.
Title: SUBRECIPIENTS, NON-CASH ASSISTANCE, FEDERAL INSURANCE AND LOANS GUAR Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Newberry College (College) under programs of the federal government for the year ending June 30, 2022. 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 the College 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. The College did not provide any federal funds to subrecipients nor did they receive any federal non-cash assistance, insurance, or loan guarantees.
Title: FEDERAL PERKINS LOAN PROGRAM Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Newberry College (College) under programs of the federal government for the year ending June 30, 2022. 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 the College 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 table in SEFA Note 5.
Title: STATE ENERGY PROGRAMS Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Newberry College (College) under programs of the federal government for the year ending June 30, 2022. 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 the College 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 table in SEFA Note 6.
Title: U.S. DEPARTMENT OF AGRICULTURE COMMUNITY FACILITIES LOANS Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Newberry College (College) under programs of the federal government for the year ending June 30, 2022. 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 the College 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 table in SEFA Note 7.

Finding Details

Finding 2022-004
Incorrect Return of Title IV Funds Calculations Significant Deficiency U.S. DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2021-22 Financial Aid Year Condition: When students withdrew either officially or unofficially, the College did not accurately calculate the R2T4 using the correct number of days in the term. Criteria: 34 CFR 668.22 Questioned Costs: $212 Context: Out of 12 withdrawals tested, 3 withdrawals had a R2T4 calculation error. All 3 incorrect calculations used the wrong number of days in the payment period. Cause: Oversight by the College when setting up R2T4 calendars. Effect: Return of Title IV funds were not completed accurately. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend an individual with appropriate return calculation knowledge review each calendar set up and recalculate the first few withdrawals manually to ensure the system is functioning as intended and calculations are being completed accurately. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2022-004
Incorrect Return of Title IV Funds Calculations Significant Deficiency U.S. DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2021-22 Financial Aid Year Condition: When students withdrew either officially or unofficially, the College did not accurately calculate the R2T4 using the correct number of days in the term. Criteria: 34 CFR 668.22 Questioned Costs: $212 Context: Out of 12 withdrawals tested, 3 withdrawals had a R2T4 calculation error. All 3 incorrect calculations used the wrong number of days in the payment period. Cause: Oversight by the College when setting up R2T4 calendars. Effect: Return of Title IV funds were not completed accurately. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend an individual with appropriate return calculation knowledge review each calendar set up and recalculate the first few withdrawals manually to ensure the system is functioning as intended and calculations are being completed accurately. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2022-003
Incorrect Pell Calculations Significant Deficiency U.S. DEPARTMENT OF EDUCATION ALN #: 84.063 Federal Award Identification #: 2021-22 Financial Aid Year Condition: For 2 students out of 33 tested, the incorrect Pell grant amount was awarded. Criteria: 34 CFR 690.63(b) Questioned Costs: $406 Context: One student?s Pell grant was under awarded based on enrollment level because the College did not include their January-term enrollment when calculating Pell grant. The other student?s Pell grant was not adjusted to reflect current enrollment before the College started a Return to Title IV calculation. As a result, the student was over awarded Pell grant by $406. Cause: Both instances were oversight by the College. Effect: Pell was not awarded correctly based on enrollment status. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend a process be used to regularly review Pell grant awards to ensure they are paid in alignment with enrollment status. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2022-005
FISAP Reporting U.S. DEPARTMENT OF EDUCATION ALN #: 84.007, 84.033, 84.038 Federal Award Identification #: 2021-22 Financial Aid Year Condition: The College did not accurately report certain items relating to Perkins Loan reporting on the FISAP report. Criteria: 34 CFR 668.24(e) Questioned Costs: $0 Context: The College did not properly report Perkins loan information on the most recent FISAP. Additionally, the College did not maintain underlying support for tuition and fees reported on the FISAP. Cause: Due to turnover in key management positions. Effect: FISAP information was not accurately reported as required. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend the College work with the Department of Education to correct errors in the Perkins loan portions of the FISAP. We also recommend the College develop a document retention process for underlying support for future FISAP reports. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2022-005
FISAP Reporting U.S. DEPARTMENT OF EDUCATION ALN #: 84.007, 84.033, 84.038 Federal Award Identification #: 2021-22 Financial Aid Year Condition: The College did not accurately report certain items relating to Perkins Loan reporting on the FISAP report. Criteria: 34 CFR 668.24(e) Questioned Costs: $0 Context: The College did not properly report Perkins loan information on the most recent FISAP. Additionally, the College did not maintain underlying support for tuition and fees reported on the FISAP. Cause: Due to turnover in key management positions. Effect: FISAP information was not accurately reported as required. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend the College work with the Department of Education to correct errors in the Perkins loan portions of the FISAP. We also recommend the College develop a document retention process for underlying support for future FISAP reports. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2022-005
FISAP Reporting U.S. DEPARTMENT OF EDUCATION ALN #: 84.007, 84.033, 84.038 Federal Award Identification #: 2021-22 Financial Aid Year Condition: The College did not accurately report certain items relating to Perkins Loan reporting on the FISAP report. Criteria: 34 CFR 668.24(e) Questioned Costs: $0 Context: The College did not properly report Perkins loan information on the most recent FISAP. Additionally, the College did not maintain underlying support for tuition and fees reported on the FISAP. Cause: Due to turnover in key management positions. Effect: FISAP information was not accurately reported as required. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend the College work with the Department of Education to correct errors in the Perkins loan portions of the FISAP. We also recommend the College develop a document retention process for underlying support for future FISAP reports. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2022-006
Inaccurate HEERF Annual Reporting U.S. DEPARTMENT OF EDUCATION ALN #: 84.425E Federal Award Identification #: P425E202625 Condition: The College did not post the required Education Stabilization Fund Higher Education Emergency Relief Fund (HEERF) reports to their website with the minimum required information. The College?s reporting did not reflect the actual methodology used by the College to allocate the HEERF student grants. Criteria: 86 FR 26213 Questioned Costs: $0 Context: According to the Federal Register, the method(s) used by the institution to determine which students receive Emergency Financial Aid Grants and how much they would receive under the CRRSAA and ARP (a)(1) and (a)(4) programs must be included in the Quarterly Report. The College?s student grant reporting did not reflect the actual methodology used by the College to allocate the HEERF student grants. Cause: Due to turnover in key management positions. Effect: The College was not in compliance with the reporting requirements of HEERF. Identification as repeat finding, if applicable: 2021-004 Recommendation: We recommend that the College regularly review updates in guidance regarding HEERF funding and review their internal controls surrounding HEERF student grant reporting to ensure compliance with ever changing regulations. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2022-002
USDA Community Facilities Loan Reserve Account Significant Deficiency U.S. DEPARTMENT OF AGRICULTURE ALN #: 10.766 Federal Award Identification #: 0000008718001CFL, 0000009560402CFL, 0000009560403CFL, CPAP00000001007 Condition: Under multiple USDA Community Facilities loan agreements, the College is required to administer a loan reserve account in which monthly deposits are to be made for the first ten years of the loan or until the minimum reserve amount is obtained. Criteria: 7 CFR 1942.17(i) Questioned Costs: $0 Context: The College was not properly administering the loan reserves as outlined in their USDA loan agreements. Cause: Due to changes in management since the loans originated, there was a lack of oversight of the continuing loan reserve requirements across the various loan agreements. Effect: The College did not make reserve contributions as required during the fiscal year-ended June 30, 2022. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend the College work with their USDA loan representative to understand their USDA loan reserve requirements for all active loan agreements. Additionally, the College should establish the minimum reserve funds that have not been established as of June 30, 2022, and make monthly payments to the reserve account, as outlined in their loan agreements. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2022-004
Incorrect Return of Title IV Funds Calculations Significant Deficiency U.S. DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2021-22 Financial Aid Year Condition: When students withdrew either officially or unofficially, the College did not accurately calculate the R2T4 using the correct number of days in the term. Criteria: 34 CFR 668.22 Questioned Costs: $212 Context: Out of 12 withdrawals tested, 3 withdrawals had a R2T4 calculation error. All 3 incorrect calculations used the wrong number of days in the payment period. Cause: Oversight by the College when setting up R2T4 calendars. Effect: Return of Title IV funds were not completed accurately. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend an individual with appropriate return calculation knowledge review each calendar set up and recalculate the first few withdrawals manually to ensure the system is functioning as intended and calculations are being completed accurately. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2022-004
Incorrect Return of Title IV Funds Calculations Significant Deficiency U.S. DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2021-22 Financial Aid Year Condition: When students withdrew either officially or unofficially, the College did not accurately calculate the R2T4 using the correct number of days in the term. Criteria: 34 CFR 668.22 Questioned Costs: $212 Context: Out of 12 withdrawals tested, 3 withdrawals had a R2T4 calculation error. All 3 incorrect calculations used the wrong number of days in the payment period. Cause: Oversight by the College when setting up R2T4 calendars. Effect: Return of Title IV funds were not completed accurately. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend an individual with appropriate return calculation knowledge review each calendar set up and recalculate the first few withdrawals manually to ensure the system is functioning as intended and calculations are being completed accurately. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2022-003
Incorrect Pell Calculations Significant Deficiency U.S. DEPARTMENT OF EDUCATION ALN #: 84.063 Federal Award Identification #: 2021-22 Financial Aid Year Condition: For 2 students out of 33 tested, the incorrect Pell grant amount was awarded. Criteria: 34 CFR 690.63(b) Questioned Costs: $406 Context: One student?s Pell grant was under awarded based on enrollment level because the College did not include their January-term enrollment when calculating Pell grant. The other student?s Pell grant was not adjusted to reflect current enrollment before the College started a Return to Title IV calculation. As a result, the student was over awarded Pell grant by $406. Cause: Both instances were oversight by the College. Effect: Pell was not awarded correctly based on enrollment status. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend a process be used to regularly review Pell grant awards to ensure they are paid in alignment with enrollment status. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2022-005
FISAP Reporting U.S. DEPARTMENT OF EDUCATION ALN #: 84.007, 84.033, 84.038 Federal Award Identification #: 2021-22 Financial Aid Year Condition: The College did not accurately report certain items relating to Perkins Loan reporting on the FISAP report. Criteria: 34 CFR 668.24(e) Questioned Costs: $0 Context: The College did not properly report Perkins loan information on the most recent FISAP. Additionally, the College did not maintain underlying support for tuition and fees reported on the FISAP. Cause: Due to turnover in key management positions. Effect: FISAP information was not accurately reported as required. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend the College work with the Department of Education to correct errors in the Perkins loan portions of the FISAP. We also recommend the College develop a document retention process for underlying support for future FISAP reports. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2022-005
FISAP Reporting U.S. DEPARTMENT OF EDUCATION ALN #: 84.007, 84.033, 84.038 Federal Award Identification #: 2021-22 Financial Aid Year Condition: The College did not accurately report certain items relating to Perkins Loan reporting on the FISAP report. Criteria: 34 CFR 668.24(e) Questioned Costs: $0 Context: The College did not properly report Perkins loan information on the most recent FISAP. Additionally, the College did not maintain underlying support for tuition and fees reported on the FISAP. Cause: Due to turnover in key management positions. Effect: FISAP information was not accurately reported as required. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend the College work with the Department of Education to correct errors in the Perkins loan portions of the FISAP. We also recommend the College develop a document retention process for underlying support for future FISAP reports. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2022-005
FISAP Reporting U.S. DEPARTMENT OF EDUCATION ALN #: 84.007, 84.033, 84.038 Federal Award Identification #: 2021-22 Financial Aid Year Condition: The College did not accurately report certain items relating to Perkins Loan reporting on the FISAP report. Criteria: 34 CFR 668.24(e) Questioned Costs: $0 Context: The College did not properly report Perkins loan information on the most recent FISAP. Additionally, the College did not maintain underlying support for tuition and fees reported on the FISAP. Cause: Due to turnover in key management positions. Effect: FISAP information was not accurately reported as required. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend the College work with the Department of Education to correct errors in the Perkins loan portions of the FISAP. We also recommend the College develop a document retention process for underlying support for future FISAP reports. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2022-006
Inaccurate HEERF Annual Reporting U.S. DEPARTMENT OF EDUCATION ALN #: 84.425E Federal Award Identification #: P425E202625 Condition: The College did not post the required Education Stabilization Fund Higher Education Emergency Relief Fund (HEERF) reports to their website with the minimum required information. The College?s reporting did not reflect the actual methodology used by the College to allocate the HEERF student grants. Criteria: 86 FR 26213 Questioned Costs: $0 Context: According to the Federal Register, the method(s) used by the institution to determine which students receive Emergency Financial Aid Grants and how much they would receive under the CRRSAA and ARP (a)(1) and (a)(4) programs must be included in the Quarterly Report. The College?s student grant reporting did not reflect the actual methodology used by the College to allocate the HEERF student grants. Cause: Due to turnover in key management positions. Effect: The College was not in compliance with the reporting requirements of HEERF. Identification as repeat finding, if applicable: 2021-004 Recommendation: We recommend that the College regularly review updates in guidance regarding HEERF funding and review their internal controls surrounding HEERF student grant reporting to ensure compliance with ever changing regulations. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2022-002
USDA Community Facilities Loan Reserve Account Significant Deficiency U.S. DEPARTMENT OF AGRICULTURE ALN #: 10.766 Federal Award Identification #: 0000008718001CFL, 0000009560402CFL, 0000009560403CFL, CPAP00000001007 Condition: Under multiple USDA Community Facilities loan agreements, the College is required to administer a loan reserve account in which monthly deposits are to be made for the first ten years of the loan or until the minimum reserve amount is obtained. Criteria: 7 CFR 1942.17(i) Questioned Costs: $0 Context: The College was not properly administering the loan reserves as outlined in their USDA loan agreements. Cause: Due to changes in management since the loans originated, there was a lack of oversight of the continuing loan reserve requirements across the various loan agreements. Effect: The College did not make reserve contributions as required during the fiscal year-ended June 30, 2022. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend the College work with their USDA loan representative to understand their USDA loan reserve requirements for all active loan agreements. Additionally, the College should establish the minimum reserve funds that have not been established as of June 30, 2022, and make monthly payments to the reserve account, as outlined in their loan agreements. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.