Audit 25603

FY End
2022-06-30
Total Expended
$1.71M
Findings
8
Programs
4
Year: 2022 Accepted: 2022-12-14
Auditor: Bdo USA LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
36150 2022-001 Material Weakness - E
36151 2022-002 Significant Deficiency - E
36152 2022-001 Material Weakness - E
36153 2022-002 Significant Deficiency - E
612592 2022-001 Material Weakness - E
612593 2022-002 Significant Deficiency - E
612594 2022-001 Material Weakness - E
612595 2022-002 Significant Deficiency - E

Contacts

Name Title Type
TM8ZVEQZ7YY6 Jeffrey Straits Auditee
2028858684 Divya Gadre Auditor
No contacts on file

Notes to SEFA

Accounting Policies: Note 1. Basis of PresentationThe accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Seminary under programs of the federal government for the year ended June 30, 2022. 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 this Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Because the Schedule presents only a selected portion of the operations of the Seminary, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Seminary.Note 2. Summary of Significant Accounting PoliciesExpenditures 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 auditee did not use the de minimis cost rate.

Finding Details

Finding Number: 2022-001 Compliance Requirement: Eligibility ? Aggregate Loan Limits for Subsidized and Unsubsidized Loans Federal Program Information: United States Department of Education Assistance Listing Number: # 84.268 Assistance Listing Name: Student Financial Assistance Cluster -Federal Direct Student Loans Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): Eligibility ? The Seminary shall ensure that the loans disbursed by the Seminary are within the loan limits prescribed in the 2CFR ? 200.91. See below for loan limits for fiscal year ending June 30, 2022. Aggregate Loan Limits for Subsidized and Unsubsidized Loans: Aggregate loan limits for subsidized and unsubsidized loans are: $31,000 for a dependent undergraduate student (except for dependent students whose parents cannot borrow a Federal Parent PLUS (PLUS) loan) (subsidized loan portion may not exceed $23,000 of the aggregate limit amount); $57,500 for an independent student and for a dependent student whose parents cannot borrow a PLUS loan (subsidized loan portion may not exceed $23,000 of the aggregate limit amount); and $138,500 for a graduate or professional student (subsidized portion limited to $65,500). This $138,500 limit includes loans for undergraduate study. Condition: The Seminary is not in compliance with ensuring that certain loans are within loan limits as described above. For 4 out of the 14 loans tested, Federal Direct Loan funds were disbursed in excess of the aggregate subsidized and unsubsidized direct loan limit. The amount over aggregate loan limits totaled $7,601 for the population ($1,147,469) tested. Cause: The Seminary personnel did not follow the Federal requirement for aggregate loan limits. Effect or Potential Effect: Wesley is not in compliance with packaging direct loans within aggregate loan limits. Questioned Costs: Known questioned costs are $7,601. Context: This is a condition based on testing of the Seminary?s compliance with eligibility provisions of the Uniform Guidance. The prevalence of these findings is detailed in the condition section above. The samples were selected using a non-statistical method. Identification as a Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the Seminary enhance its procedures to ensure that Federal Direct Loans are awarded/disbursed in accordance with federal guidelines. We also recommend the Seminary to implement additional review of student eligibility determinations. Documented evidence of management?s review of this information should be maintained.
Finding Number: 2022-002 Compliance Requirement: Eligibility ? Maintain good standing or satisfactory academic progress Federal Program Information: United States Department of Education Assistance Listing Number: # 84.268 Assistance Listing Name: Student Financial Assistance Cluster -Federal Direct Student Loans Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): Eligibility ? The Seminary shall ensure that students maintain a good standing or satisfactory academic progress in order to be eligible for the Federal direct student loans per the OMB Compliance Supplement. See below for policies and procedures on this matter. Students receiving Federal loans must be held to both qualitative as well as quantitative Satisfactory Academic Progress (SAP) standards set forth by the Seminary. It is the Seminary?s policy that students must maintain a cumulative Grade Point Average (GPA) of 2.3 in order to continue receiving federal funding. At the conclusion of spring semester each year, SAP will be evaluated on each student receiving merit aid, needing grants and/or Stafford loans. If the Financial Aid Committee makes the determination that a student is not meeting SAP requirements, either at the required pace or through the required GPA, the student is put on financial aid warning. Students not meeting the minimum requirement will be notified and be given an opportunity to appeal. Students must submit an appeal letter explaining the cause of the academic issues or mitigating personal circumstances that may have led to poor performance and a plan to improve his or her GPA. The Financial Aid Committee will then render a decision on whether to grant the appeal. If the appeal is granted, the student will be awarded his/her aid for the following academic year after which SAP will be re-evaluated. If at the end of the probationary/appeal year, if the student has met the required minimum GPA for the type of aid received, the aid will be reinstated. If SAP is not met by the end of the probationary/appeal year, the aid will not be reinstated. Second appeals are rare and at the discretion of the Financial Aid Committee. If the student has not met SAP a second time, but has shown significant progress over the probationary year rather than repeating the same level of poor performance, a second appeal may be granted. Condition: For 1 out of the 14 loans tested, the loan was awarded to a student who did not meet the GPA requirement as set forth in the Seminary?s policy. No appeal letter was provided for the student, and no documentation was maintained to evidence management?s decision to award the loan. Cause: The Seminary personnel did not adhere to the Seminary?s documented policies and procedures for ensuring that the loans are distributed to students who maintain good standing or satisfactory academic progress. Effect or Potential Effect: The Seminary is not in compliance with the eligibility requirement which could lead to questioned costs. Questioned Costs: Not determinable. Context: This is a condition based on testing of the Seminary?s compliance with specified requirements. The prevalence of these findings is detailed in the condition section above. The samples were selected using a non-statistical method. Identification as a Repeat Finding: This is not a repeat finding. Recommendation: We recommend the Seminary enhance its procedures to ensure that Federal Direct Loans are awarded/disbursed in accordance with federal guidelines and we recommend the Seminary implement additional review on student eligibility determinations. In the case where a student submits an appeal, such appeal should undergo two levels of review, not only by the Student Financial Aid Director but also by management. The appeal should be retained file and the review should be properly documented.
Finding Number: 2022-001 Compliance Requirement: Eligibility ? Aggregate Loan Limits for Subsidized and Unsubsidized Loans Federal Program Information: United States Department of Education Assistance Listing Number: # 84.268 Assistance Listing Name: Student Financial Assistance Cluster -Federal Direct Student Loans Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): Eligibility ? The Seminary shall ensure that the loans disbursed by the Seminary are within the loan limits prescribed in the 2CFR ? 200.91. See below for loan limits for fiscal year ending June 30, 2022. Aggregate Loan Limits for Subsidized and Unsubsidized Loans: Aggregate loan limits for subsidized and unsubsidized loans are: $31,000 for a dependent undergraduate student (except for dependent students whose parents cannot borrow a Federal Parent PLUS (PLUS) loan) (subsidized loan portion may not exceed $23,000 of the aggregate limit amount); $57,500 for an independent student and for a dependent student whose parents cannot borrow a PLUS loan (subsidized loan portion may not exceed $23,000 of the aggregate limit amount); and $138,500 for a graduate or professional student (subsidized portion limited to $65,500). This $138,500 limit includes loans for undergraduate study. Condition: The Seminary is not in compliance with ensuring that certain loans are within loan limits as described above. For 4 out of the 14 loans tested, Federal Direct Loan funds were disbursed in excess of the aggregate subsidized and unsubsidized direct loan limit. The amount over aggregate loan limits totaled $7,601 for the population ($1,147,469) tested. Cause: The Seminary personnel did not follow the Federal requirement for aggregate loan limits. Effect or Potential Effect: Wesley is not in compliance with packaging direct loans within aggregate loan limits. Questioned Costs: Known questioned costs are $7,601. Context: This is a condition based on testing of the Seminary?s compliance with eligibility provisions of the Uniform Guidance. The prevalence of these findings is detailed in the condition section above. The samples were selected using a non-statistical method. Identification as a Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the Seminary enhance its procedures to ensure that Federal Direct Loans are awarded/disbursed in accordance with federal guidelines. We also recommend the Seminary to implement additional review of student eligibility determinations. Documented evidence of management?s review of this information should be maintained.
Finding Number: 2022-002 Compliance Requirement: Eligibility ? Maintain good standing or satisfactory academic progress Federal Program Information: United States Department of Education Assistance Listing Number: # 84.268 Assistance Listing Name: Student Financial Assistance Cluster -Federal Direct Student Loans Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): Eligibility ? The Seminary shall ensure that students maintain a good standing or satisfactory academic progress in order to be eligible for the Federal direct student loans per the OMB Compliance Supplement. See below for policies and procedures on this matter. Students receiving Federal loans must be held to both qualitative as well as quantitative Satisfactory Academic Progress (SAP) standards set forth by the Seminary. It is the Seminary?s policy that students must maintain a cumulative Grade Point Average (GPA) of 2.3 in order to continue receiving federal funding. At the conclusion of spring semester each year, SAP will be evaluated on each student receiving merit aid, needing grants and/or Stafford loans. If the Financial Aid Committee makes the determination that a student is not meeting SAP requirements, either at the required pace or through the required GPA, the student is put on financial aid warning. Students not meeting the minimum requirement will be notified and be given an opportunity to appeal. Students must submit an appeal letter explaining the cause of the academic issues or mitigating personal circumstances that may have led to poor performance and a plan to improve his or her GPA. The Financial Aid Committee will then render a decision on whether to grant the appeal. If the appeal is granted, the student will be awarded his/her aid for the following academic year after which SAP will be re-evaluated. If at the end of the probationary/appeal year, if the student has met the required minimum GPA for the type of aid received, the aid will be reinstated. If SAP is not met by the end of the probationary/appeal year, the aid will not be reinstated. Second appeals are rare and at the discretion of the Financial Aid Committee. If the student has not met SAP a second time, but has shown significant progress over the probationary year rather than repeating the same level of poor performance, a second appeal may be granted. Condition: For 1 out of the 14 loans tested, the loan was awarded to a student who did not meet the GPA requirement as set forth in the Seminary?s policy. No appeal letter was provided for the student, and no documentation was maintained to evidence management?s decision to award the loan. Cause: The Seminary personnel did not adhere to the Seminary?s documented policies and procedures for ensuring that the loans are distributed to students who maintain good standing or satisfactory academic progress. Effect or Potential Effect: The Seminary is not in compliance with the eligibility requirement which could lead to questioned costs. Questioned Costs: Not determinable. Context: This is a condition based on testing of the Seminary?s compliance with specified requirements. The prevalence of these findings is detailed in the condition section above. The samples were selected using a non-statistical method. Identification as a Repeat Finding: This is not a repeat finding. Recommendation: We recommend the Seminary enhance its procedures to ensure that Federal Direct Loans are awarded/disbursed in accordance with federal guidelines and we recommend the Seminary implement additional review on student eligibility determinations. In the case where a student submits an appeal, such appeal should undergo two levels of review, not only by the Student Financial Aid Director but also by management. The appeal should be retained file and the review should be properly documented.
Finding Number: 2022-001 Compliance Requirement: Eligibility ? Aggregate Loan Limits for Subsidized and Unsubsidized Loans Federal Program Information: United States Department of Education Assistance Listing Number: # 84.268 Assistance Listing Name: Student Financial Assistance Cluster -Federal Direct Student Loans Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): Eligibility ? The Seminary shall ensure that the loans disbursed by the Seminary are within the loan limits prescribed in the 2CFR ? 200.91. See below for loan limits for fiscal year ending June 30, 2022. Aggregate Loan Limits for Subsidized and Unsubsidized Loans: Aggregate loan limits for subsidized and unsubsidized loans are: $31,000 for a dependent undergraduate student (except for dependent students whose parents cannot borrow a Federal Parent PLUS (PLUS) loan) (subsidized loan portion may not exceed $23,000 of the aggregate limit amount); $57,500 for an independent student and for a dependent student whose parents cannot borrow a PLUS loan (subsidized loan portion may not exceed $23,000 of the aggregate limit amount); and $138,500 for a graduate or professional student (subsidized portion limited to $65,500). This $138,500 limit includes loans for undergraduate study. Condition: The Seminary is not in compliance with ensuring that certain loans are within loan limits as described above. For 4 out of the 14 loans tested, Federal Direct Loan funds were disbursed in excess of the aggregate subsidized and unsubsidized direct loan limit. The amount over aggregate loan limits totaled $7,601 for the population ($1,147,469) tested. Cause: The Seminary personnel did not follow the Federal requirement for aggregate loan limits. Effect or Potential Effect: Wesley is not in compliance with packaging direct loans within aggregate loan limits. Questioned Costs: Known questioned costs are $7,601. Context: This is a condition based on testing of the Seminary?s compliance with eligibility provisions of the Uniform Guidance. The prevalence of these findings is detailed in the condition section above. The samples were selected using a non-statistical method. Identification as a Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the Seminary enhance its procedures to ensure that Federal Direct Loans are awarded/disbursed in accordance with federal guidelines. We also recommend the Seminary to implement additional review of student eligibility determinations. Documented evidence of management?s review of this information should be maintained.
Finding Number: 2022-002 Compliance Requirement: Eligibility ? Maintain good standing or satisfactory academic progress Federal Program Information: United States Department of Education Assistance Listing Number: # 84.268 Assistance Listing Name: Student Financial Assistance Cluster -Federal Direct Student Loans Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): Eligibility ? The Seminary shall ensure that students maintain a good standing or satisfactory academic progress in order to be eligible for the Federal direct student loans per the OMB Compliance Supplement. See below for policies and procedures on this matter. Students receiving Federal loans must be held to both qualitative as well as quantitative Satisfactory Academic Progress (SAP) standards set forth by the Seminary. It is the Seminary?s policy that students must maintain a cumulative Grade Point Average (GPA) of 2.3 in order to continue receiving federal funding. At the conclusion of spring semester each year, SAP will be evaluated on each student receiving merit aid, needing grants and/or Stafford loans. If the Financial Aid Committee makes the determination that a student is not meeting SAP requirements, either at the required pace or through the required GPA, the student is put on financial aid warning. Students not meeting the minimum requirement will be notified and be given an opportunity to appeal. Students must submit an appeal letter explaining the cause of the academic issues or mitigating personal circumstances that may have led to poor performance and a plan to improve his or her GPA. The Financial Aid Committee will then render a decision on whether to grant the appeal. If the appeal is granted, the student will be awarded his/her aid for the following academic year after which SAP will be re-evaluated. If at the end of the probationary/appeal year, if the student has met the required minimum GPA for the type of aid received, the aid will be reinstated. If SAP is not met by the end of the probationary/appeal year, the aid will not be reinstated. Second appeals are rare and at the discretion of the Financial Aid Committee. If the student has not met SAP a second time, but has shown significant progress over the probationary year rather than repeating the same level of poor performance, a second appeal may be granted. Condition: For 1 out of the 14 loans tested, the loan was awarded to a student who did not meet the GPA requirement as set forth in the Seminary?s policy. No appeal letter was provided for the student, and no documentation was maintained to evidence management?s decision to award the loan. Cause: The Seminary personnel did not adhere to the Seminary?s documented policies and procedures for ensuring that the loans are distributed to students who maintain good standing or satisfactory academic progress. Effect or Potential Effect: The Seminary is not in compliance with the eligibility requirement which could lead to questioned costs. Questioned Costs: Not determinable. Context: This is a condition based on testing of the Seminary?s compliance with specified requirements. The prevalence of these findings is detailed in the condition section above. The samples were selected using a non-statistical method. Identification as a Repeat Finding: This is not a repeat finding. Recommendation: We recommend the Seminary enhance its procedures to ensure that Federal Direct Loans are awarded/disbursed in accordance with federal guidelines and we recommend the Seminary implement additional review on student eligibility determinations. In the case where a student submits an appeal, such appeal should undergo two levels of review, not only by the Student Financial Aid Director but also by management. The appeal should be retained file and the review should be properly documented.
Finding Number: 2022-001 Compliance Requirement: Eligibility ? Aggregate Loan Limits for Subsidized and Unsubsidized Loans Federal Program Information: United States Department of Education Assistance Listing Number: # 84.268 Assistance Listing Name: Student Financial Assistance Cluster -Federal Direct Student Loans Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): Eligibility ? The Seminary shall ensure that the loans disbursed by the Seminary are within the loan limits prescribed in the 2CFR ? 200.91. See below for loan limits for fiscal year ending June 30, 2022. Aggregate Loan Limits for Subsidized and Unsubsidized Loans: Aggregate loan limits for subsidized and unsubsidized loans are: $31,000 for a dependent undergraduate student (except for dependent students whose parents cannot borrow a Federal Parent PLUS (PLUS) loan) (subsidized loan portion may not exceed $23,000 of the aggregate limit amount); $57,500 for an independent student and for a dependent student whose parents cannot borrow a PLUS loan (subsidized loan portion may not exceed $23,000 of the aggregate limit amount); and $138,500 for a graduate or professional student (subsidized portion limited to $65,500). This $138,500 limit includes loans for undergraduate study. Condition: The Seminary is not in compliance with ensuring that certain loans are within loan limits as described above. For 4 out of the 14 loans tested, Federal Direct Loan funds were disbursed in excess of the aggregate subsidized and unsubsidized direct loan limit. The amount over aggregate loan limits totaled $7,601 for the population ($1,147,469) tested. Cause: The Seminary personnel did not follow the Federal requirement for aggregate loan limits. Effect or Potential Effect: Wesley is not in compliance with packaging direct loans within aggregate loan limits. Questioned Costs: Known questioned costs are $7,601. Context: This is a condition based on testing of the Seminary?s compliance with eligibility provisions of the Uniform Guidance. The prevalence of these findings is detailed in the condition section above. The samples were selected using a non-statistical method. Identification as a Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the Seminary enhance its procedures to ensure that Federal Direct Loans are awarded/disbursed in accordance with federal guidelines. We also recommend the Seminary to implement additional review of student eligibility determinations. Documented evidence of management?s review of this information should be maintained.
Finding Number: 2022-002 Compliance Requirement: Eligibility ? Maintain good standing or satisfactory academic progress Federal Program Information: United States Department of Education Assistance Listing Number: # 84.268 Assistance Listing Name: Student Financial Assistance Cluster -Federal Direct Student Loans Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): Eligibility ? The Seminary shall ensure that students maintain a good standing or satisfactory academic progress in order to be eligible for the Federal direct student loans per the OMB Compliance Supplement. See below for policies and procedures on this matter. Students receiving Federal loans must be held to both qualitative as well as quantitative Satisfactory Academic Progress (SAP) standards set forth by the Seminary. It is the Seminary?s policy that students must maintain a cumulative Grade Point Average (GPA) of 2.3 in order to continue receiving federal funding. At the conclusion of spring semester each year, SAP will be evaluated on each student receiving merit aid, needing grants and/or Stafford loans. If the Financial Aid Committee makes the determination that a student is not meeting SAP requirements, either at the required pace or through the required GPA, the student is put on financial aid warning. Students not meeting the minimum requirement will be notified and be given an opportunity to appeal. Students must submit an appeal letter explaining the cause of the academic issues or mitigating personal circumstances that may have led to poor performance and a plan to improve his or her GPA. The Financial Aid Committee will then render a decision on whether to grant the appeal. If the appeal is granted, the student will be awarded his/her aid for the following academic year after which SAP will be re-evaluated. If at the end of the probationary/appeal year, if the student has met the required minimum GPA for the type of aid received, the aid will be reinstated. If SAP is not met by the end of the probationary/appeal year, the aid will not be reinstated. Second appeals are rare and at the discretion of the Financial Aid Committee. If the student has not met SAP a second time, but has shown significant progress over the probationary year rather than repeating the same level of poor performance, a second appeal may be granted. Condition: For 1 out of the 14 loans tested, the loan was awarded to a student who did not meet the GPA requirement as set forth in the Seminary?s policy. No appeal letter was provided for the student, and no documentation was maintained to evidence management?s decision to award the loan. Cause: The Seminary personnel did not adhere to the Seminary?s documented policies and procedures for ensuring that the loans are distributed to students who maintain good standing or satisfactory academic progress. Effect or Potential Effect: The Seminary is not in compliance with the eligibility requirement which could lead to questioned costs. Questioned Costs: Not determinable. Context: This is a condition based on testing of the Seminary?s compliance with specified requirements. The prevalence of these findings is detailed in the condition section above. The samples were selected using a non-statistical method. Identification as a Repeat Finding: This is not a repeat finding. Recommendation: We recommend the Seminary enhance its procedures to ensure that Federal Direct Loans are awarded/disbursed in accordance with federal guidelines and we recommend the Seminary implement additional review on student eligibility determinations. In the case where a student submits an appeal, such appeal should undergo two levels of review, not only by the Student Financial Aid Director but also by management. The appeal should be retained file and the review should be properly documented.