FAC Explorer

Audit 25908

FY End
2022-06-30
Total Expended
$2.85M
Findings
8
Programs
7
Organization: Dallas Christian College (TX)
Year: 2022 Accepted: 2022-11-16
Auditor: Capincrouse LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
30685 2022-001 - - N
30686 2022-002 - - N
30687 2022-003 - - L
30688 2022-001 - - N
607127 2022-001 - - N
607128 2022-002 - - N
607129 2022-003 - - L
607130 2022-001 - - N

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $1.77M Yes 3
84.063 Federal Pell Grant Program $742,704 Yes 1
84.425 Covid-19 Education Stabilization Fund Heerf - Student Aid Portion $264,281 - 0
84.007 Federal Supplemental Educational Opportunity Grants $21,074 Yes 0
84.425 Covid-19 Education Stabilization Fund Heerf - Strengthening Institutions $19,639 - 0
84.033 Federal Work-Study Program $18,905 Yes 0
84.425 Covid-19 Education Stabilization Fund Heerf - Institutional Portion $11,578 - 0

Contacts

Name Title Type
HWTQJKWFKJC9 Breanda Williams Auditee
2144538135 Junice Jones, 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 Dallas Christian College (the 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, LOANS, AND LOAN GUAR Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Dallas Christian College (the 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, loans, or loan guarantees.

Finding Details

Finding 2022-001
Return of Title IV (R2T4) Calculations DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2021-22 Financial Aid Year Condition: The College returned Title IV funds for a modular student withdrawal that did not require funds to be returned based on the completion rate. Criteria: 34 CFR 668.22 Questioned Costs: $-0- Context: Out of 11 R2T4s tested, 1 student had $2,318 returned in unsubsidized federal direct loans returned though the student was eligible to retain their Title IV funds as they had dropped the second and third modules prior to the start of the second module resulting in the payment period being only the first module. Cause: There was an oversight when the student dropped the remaining modules while still enrolled in the first module, resulting in a calculation based on the whole semester instead of the one module. Effect: Noncompliance with new R2T4 regulations regarding withdrawals from modular programs. Identification as repeat finding, if applicable: Not applicable Recommendation: We recommend the College review the timing of drops for those students taking classes in modules to determine the period of enrollment to be used for the return calculation. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2022-002
Incorrect Enrollment Reporting to National Student Loan Data System (NSLDS) DEPARTMENT OF EDUCATION ALN #: 84.268 Federal Award Identification #: 2021-22 Financial Aid Year Condition: The College did not report enrollment information to the NSLDS correctly for all students. Criteria: 34 CFR 685.309 Questioned Costs: $-0- Context: Out of 57 students tested, 2 students had incorrect effective dates reported for their enrollment status, and 1 student was reported as half time instead of graduated. The two incorrect effective dates were both Fall 2021 official withdrawals. Cause: One student had a degree conferred on the transcript while the system showed the student as exited, so it was not picked up correctly for NSLDS reporting as graduated. The withdrawal students were not captured correctly based on their official withdrawal date with differences ranging from a couple of weeks to two and a half months different. Effect: Inaccurate reporting can impact a student?s loan grace period in school deferment eligibility, beginning loan repayments, appropriate interest charges, etc. Identification as repeat finding, if applicable: Not applicable Recommendation: We recommend the College put a system in place to ensure that the date being reported to NSLDS as the effective date of withdrawal is the actual official withdrawal date for the student, and that when degrees are conferred on the transcript the College is updating the status to graduated so the students are correctly picked up for enrollment reporting. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2022-003
2022-003 Common Origination and Disbursement (COD) Dates Not Reflecting Actual Disbursement Dates DEPARTMENT OF EDUCATION ALN #: 84.268 Federal Award Identification #: 2021-22 Financial Aid Year Condition: The anticipated disbursement dates in COD were not updated with the actual dates of disbursement when reporting disbursement records for summer 2022 Federal Direct Loans (FDL) to COD. Criteria: 34 CFR 668.164(a) Questioned Costs: $-0- Context: 3 of 51 tested had COD loan disbursement date errors ranging from 23?77 days, with all errors in the summer 2022 term. There were no errors in the amounts reported, just the date of disbursement. All three students were corrected during the audit process. Cause: The anticipated disbursement dates in COD were not updated to the actual dates that FDL were disbursed to the students? accounts. Effect: Inaccurate FDL reporting can impact a student?s interest accumulating period based on the dates of the loan disbursement dates. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend that procedures be implemented to ensure that disbursement reporting to COD be reflective of the actual disbursement dates. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2022-001
Return of Title IV (R2T4) Calculations DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2021-22 Financial Aid Year Condition: The College returned Title IV funds for a modular student withdrawal that did not require funds to be returned based on the completion rate. Criteria: 34 CFR 668.22 Questioned Costs: $-0- Context: Out of 11 R2T4s tested, 1 student had $2,318 returned in unsubsidized federal direct loans returned though the student was eligible to retain their Title IV funds as they had dropped the second and third modules prior to the start of the second module resulting in the payment period being only the first module. Cause: There was an oversight when the student dropped the remaining modules while still enrolled in the first module, resulting in a calculation based on the whole semester instead of the one module. Effect: Noncompliance with new R2T4 regulations regarding withdrawals from modular programs. Identification as repeat finding, if applicable: Not applicable Recommendation: We recommend the College review the timing of drops for those students taking classes in modules to determine the period of enrollment to be used for the return calculation. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2022-001
Return of Title IV (R2T4) Calculations DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2021-22 Financial Aid Year Condition: The College returned Title IV funds for a modular student withdrawal that did not require funds to be returned based on the completion rate. Criteria: 34 CFR 668.22 Questioned Costs: $-0- Context: Out of 11 R2T4s tested, 1 student had $2,318 returned in unsubsidized federal direct loans returned though the student was eligible to retain their Title IV funds as they had dropped the second and third modules prior to the start of the second module resulting in the payment period being only the first module. Cause: There was an oversight when the student dropped the remaining modules while still enrolled in the first module, resulting in a calculation based on the whole semester instead of the one module. Effect: Noncompliance with new R2T4 regulations regarding withdrawals from modular programs. Identification as repeat finding, if applicable: Not applicable Recommendation: We recommend the College review the timing of drops for those students taking classes in modules to determine the period of enrollment to be used for the return calculation. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2022-002
Incorrect Enrollment Reporting to National Student Loan Data System (NSLDS) DEPARTMENT OF EDUCATION ALN #: 84.268 Federal Award Identification #: 2021-22 Financial Aid Year Condition: The College did not report enrollment information to the NSLDS correctly for all students. Criteria: 34 CFR 685.309 Questioned Costs: $-0- Context: Out of 57 students tested, 2 students had incorrect effective dates reported for their enrollment status, and 1 student was reported as half time instead of graduated. The two incorrect effective dates were both Fall 2021 official withdrawals. Cause: One student had a degree conferred on the transcript while the system showed the student as exited, so it was not picked up correctly for NSLDS reporting as graduated. The withdrawal students were not captured correctly based on their official withdrawal date with differences ranging from a couple of weeks to two and a half months different. Effect: Inaccurate reporting can impact a student?s loan grace period in school deferment eligibility, beginning loan repayments, appropriate interest charges, etc. Identification as repeat finding, if applicable: Not applicable Recommendation: We recommend the College put a system in place to ensure that the date being reported to NSLDS as the effective date of withdrawal is the actual official withdrawal date for the student, and that when degrees are conferred on the transcript the College is updating the status to graduated so the students are correctly picked up for enrollment reporting. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2022-003
2022-003 Common Origination and Disbursement (COD) Dates Not Reflecting Actual Disbursement Dates DEPARTMENT OF EDUCATION ALN #: 84.268 Federal Award Identification #: 2021-22 Financial Aid Year Condition: The anticipated disbursement dates in COD were not updated with the actual dates of disbursement when reporting disbursement records for summer 2022 Federal Direct Loans (FDL) to COD. Criteria: 34 CFR 668.164(a) Questioned Costs: $-0- Context: 3 of 51 tested had COD loan disbursement date errors ranging from 23?77 days, with all errors in the summer 2022 term. There were no errors in the amounts reported, just the date of disbursement. All three students were corrected during the audit process. Cause: The anticipated disbursement dates in COD were not updated to the actual dates that FDL were disbursed to the students? accounts. Effect: Inaccurate FDL reporting can impact a student?s interest accumulating period based on the dates of the loan disbursement dates. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend that procedures be implemented to ensure that disbursement reporting to COD be reflective of the actual disbursement dates. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2022-001
Return of Title IV (R2T4) Calculations DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2021-22 Financial Aid Year Condition: The College returned Title IV funds for a modular student withdrawal that did not require funds to be returned based on the completion rate. Criteria: 34 CFR 668.22 Questioned Costs: $-0- Context: Out of 11 R2T4s tested, 1 student had $2,318 returned in unsubsidized federal direct loans returned though the student was eligible to retain their Title IV funds as they had dropped the second and third modules prior to the start of the second module resulting in the payment period being only the first module. Cause: There was an oversight when the student dropped the remaining modules while still enrolled in the first module, resulting in a calculation based on the whole semester instead of the one module. Effect: Noncompliance with new R2T4 regulations regarding withdrawals from modular programs. Identification as repeat finding, if applicable: Not applicable Recommendation: We recommend the College review the timing of drops for those students taking classes in modules to determine the period of enrollment to be used for the return calculation. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.