Audit 26626

FY End

2022-06-30

Total Expended

$8.11M

Findings

4

Programs

7

Organization: Central Christian College of Kansas and Affiliates (KS)

Year: 2022 Accepted: 2023-03-30

Auditor: Capincrouse LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
30766	2022-003	Significant Deficiency	Yes	N
30767	2022-003	Significant Deficiency	Yes	N
607208	2022-003	Significant Deficiency	Yes	N
607209	2022-003	Significant Deficiency	Yes	N

ALN	Program	Spent	Major	Findings
84.268	Federal Direct Student Loans	$3.52M	Yes	1
84.063	Federal Pell Grant Program	$1.37M	Yes	1
84.425	Covid-19 Education Stabilization Fund Heerf - Institutional Portion	$1.24M	Yes	0
84.038	Federal Perkins Loan Program	$1.02M	Yes	0
84.425	Covid-19 Education Stabilization Fund Heerf -- Student Aid Portion	$871,864	Yes	0
84.007	Federal Supplemental Educational Opportunity Grants	$53,661	Yes	0
84.033	Federal Work-Study Program	$29,734	Yes	0

Contacts

Name	Title	Type
WAHBVHTVZD74	Leann Moore	Auditee
6202410723	Doug McVey, 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 Central Christian College of Kansas and Affiliates (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 consolidated 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 Central Christian College of Kansas and Affiliates (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 consolidated 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.

Title: FEDERAL PERKINS LOAN PROGRAM Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Central Christian College of Kansas and Affiliates (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 consolidated 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: ZONE ALTERNATIVE COMPLIANCE Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Central Christian College of Kansas and Affiliates (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 consolidated 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 is operating under the Provisional Certification Alternative for failure to meet the Department of Education's standards of financial responsibility. The College must comply with all the requirements specified for the Provisional Certification Alternative including the Zone Alternative. As part of the audit procedures, the Colleges compliance with the Zone Alternative including their administration of the heightened cash monitoring payment method, disbursing aid and paying out credit balances before requesting reimbursement and notification requirements was tested. No non-compliance with the requirements was noted.

Finding Details

Finding 2022-003

Return of Title IV (R2T4) Calculations Significant Deficiency 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 always return unearned Title IV aid timely. Additionally, the College did not always calculate unearned Title IV funds correctly. Criteria: 34 CFR 668.22 Questioned Costs: $1,443 Context: Out of 25 students, 1 student who withdrew during the audit period tested had funds returned late. The late return within the fiscal year was one day past due and totaled $1,990 in FDL. Additionally, out of 25 R2T4s tested, there were 2 with a calculation error due to the wrong calendar. These calculation errors resulted in $631 of FDL questioned costs and an over return of $139 of FDL. There was one student who did not begin attendance in one class resulting in a return of $812 of Pell needed. Lastly, there were two post-withdrawal disbursements that were not processed timely. Cause: This was an oversight by the College. Effect: Incorrect amount of unearned Title IV funds returned and returns of Title IV funds were not performed timely. Identification as repeat finding, if applicable: 2021-003 Recommendation: We recommend an individual in financial aid with the appropriate level of experience periodically review student's R2T4 calculations and returns to help ensure that internal controls over such process can operate effectively and achieve compliance. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Finding 2022-003

Return of Title IV (R2T4) Calculations Significant Deficiency 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 always return unearned Title IV aid timely. Additionally, the College did not always calculate unearned Title IV funds correctly. Criteria: 34 CFR 668.22 Questioned Costs: $1,443 Context: Out of 25 students, 1 student who withdrew during the audit period tested had funds returned late. The late return within the fiscal year was one day past due and totaled $1,990 in FDL. Additionally, out of 25 R2T4s tested, there were 2 with a calculation error due to the wrong calendar. These calculation errors resulted in $631 of FDL questioned costs and an over return of $139 of FDL. There was one student who did not begin attendance in one class resulting in a return of $812 of Pell needed. Lastly, there were two post-withdrawal disbursements that were not processed timely. Cause: This was an oversight by the College. Effect: Incorrect amount of unearned Title IV funds returned and returns of Title IV funds were not performed timely. Identification as repeat finding, if applicable: 2021-003 Recommendation: We recommend an individual in financial aid with the appropriate level of experience periodically review student's R2T4 calculations and returns to help ensure that internal controls over such process can operate effectively and achieve compliance. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Finding 2022-003

Return of Title IV (R2T4) Calculations Significant Deficiency 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 always return unearned Title IV aid timely. Additionally, the College did not always calculate unearned Title IV funds correctly. Criteria: 34 CFR 668.22 Questioned Costs: $1,443 Context: Out of 25 students, 1 student who withdrew during the audit period tested had funds returned late. The late return within the fiscal year was one day past due and totaled $1,990 in FDL. Additionally, out of 25 R2T4s tested, there were 2 with a calculation error due to the wrong calendar. These calculation errors resulted in $631 of FDL questioned costs and an over return of $139 of FDL. There was one student who did not begin attendance in one class resulting in a return of $812 of Pell needed. Lastly, there were two post-withdrawal disbursements that were not processed timely. Cause: This was an oversight by the College. Effect: Incorrect amount of unearned Title IV funds returned and returns of Title IV funds were not performed timely. Identification as repeat finding, if applicable: 2021-003 Recommendation: We recommend an individual in financial aid with the appropriate level of experience periodically review student's R2T4 calculations and returns to help ensure that internal controls over such process can operate effectively and achieve compliance. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Finding 2022-003

Return of Title IV (R2T4) Calculations Significant Deficiency 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 always return unearned Title IV aid timely. Additionally, the College did not always calculate unearned Title IV funds correctly. Criteria: 34 CFR 668.22 Questioned Costs: $1,443 Context: Out of 25 students, 1 student who withdrew during the audit period tested had funds returned late. The late return within the fiscal year was one day past due and totaled $1,990 in FDL. Additionally, out of 25 R2T4s tested, there were 2 with a calculation error due to the wrong calendar. These calculation errors resulted in $631 of FDL questioned costs and an over return of $139 of FDL. There was one student who did not begin attendance in one class resulting in a return of $812 of Pell needed. Lastly, there were two post-withdrawal disbursements that were not processed timely. Cause: This was an oversight by the College. Effect: Incorrect amount of unearned Title IV funds returned and returns of Title IV funds were not performed timely. Identification as repeat finding, if applicable: 2021-003 Recommendation: We recommend an individual in financial aid with the appropriate level of experience periodically review student's R2T4 calculations and returns to help ensure that internal controls over such process can operate effectively and achieve compliance. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.