FAC Explorer

Audit 27232

FY End
2022-06-30
Total Expended
$20.14M
Findings
2
Programs
10
Organization: Woodbury University (CA)
Year: 2022 Accepted: 2023-03-30
Auditor: Moss Adams LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
36548 2022-002 Significant Deficiency - E
612990 2022-002 Significant Deficiency - E

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $10.84M Yes 1
84.063 Federal Pell Grant Program $2.45M Yes 0
84.425 Education Stabilization Fund Covid-19 Higher Education Emergency Relief Fund (institutional Portion) $2.18M Yes 0
84.425 Education Stabilization Fund Covid-19 Higher Education Emergency Relief Fund (student Portion) $1.60M Yes 0
84.031 Higher Education Institutional Aid $1.42M Yes 0
84.038 Federal Perkins Loan Program (beginning of the Year) $1.05M Yes 0
84.425 Education Stabilization Fund Covid-19 Higher Education Emergency Relief Fund (minority Serving Institutions) $232,186 Yes 0
84.007 Federal Supplemental Educational Opportunity Grants $221,261 Yes 0
84.033 Federal Work-Study Program $146,543 Yes 0
84.038 Federal Perkins Loan Program (current Year Distributions) $0 Yes 0

Contacts

Name Title Type
KE1KF8PUSB29 Tim McKenzie Auditee
8183493389 Melissa Harman Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: Note 2 - Summary of Significant Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The University has elected not to use the 10 percent de minimus indirect cost rate as allowed under Uniform Guidance. FEDERAL PERKINS LOAN PROGRAM (BEGINNING OF THE YEAR) (84.038) - Balances outstanding at the end of the audit period were 965213.
Title: Note 1 - Basis of Presentation Accounting Policies: Note 2 - Summary of Significant Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The University has elected not to use the 10 percent de minimus indirect cost rate as allowed under Uniform Guidance. The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal grant activity of Woodbury University (the "University") 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). Because the Schedule presents only a selected portion of the operations of the University, it is not intended to, and does not present the statement of financial position, activities, or cash flows of the University.
Title: Note 3 - Federal Student Loan Program Accounting Policies: Note 2 - Summary of Significant Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The University has elected not to use the 10 percent de minimus indirect cost rate as allowed under Uniform Guidance. The federal Student loan program listed subsequently is administered directly by the University, and balances and transactions relating to this program are included in the University's financial statements. Loans made during the year are included in the federal expenditures presented in the Schedule. The balance of loans outstanding at June 30, 2022, consists of: SEE NOTES TO SCHEDULE OF EXPENDITURES OF FEDEERAL AWARDS FOR TABLE/CHART.

Finding Details

Finding 2022-002
Finding: 2022-002 - Eligibility - Significant Deficiency in the Internal Control Over Compliance: SEE SCHEDULE OF FINDINGS AND QUESTION COSTS FOR CHART/TABLE - Criteria: 2021-2022 Federal Student Aid Handbook, volume 3, chapter7: Depending on individual circumstance, students may receive only need-based aid, non-need-based aid, or a combination of need-based and non-need-based aid. The total amount of need-based aid cannot exceed the student's financial need and the total amount of all aid cannot exceed the student's cost of attendance. - Condition/context: A sample of 48 federal aid recipient students were selected from system generated reports of 790 students who were disbursed federal student aid during the 2021-2022 academic year. The student's records were inspected. - Effect: An exception was noted whereby one student was awarded aid in excess of their cost of attendance which resulted in an over award of $5,550 of federal direct subsidized loans. - Cause: The student was over awarded due to a weakness in the University's manual packaging process. The standard packaging process is done automatically. When the packaging is performed automatically there are triggers in the process that prevent over awarding. In the case of this student, it was done manually, and those checks and balances were never activated, because of this there was not flag to stop the awarding. - Repeat finding: This is not a repeat finding. - Recommendation: We recommend the University amend procedures so in teh event that packaging is done manually, there are added reviews over the student's aid awarded. - View of responsible officials and planned corrective actions: We accept Moss Adams' recommendation and if a situation arises where we must manually package a student, the procedure will include an additional review by another individual, either the Director or a Counselor, to review the package for accuracy.
Finding 2022-002
Finding: 2022-002 - Eligibility - Significant Deficiency in the Internal Control Over Compliance: SEE SCHEDULE OF FINDINGS AND QUESTION COSTS FOR CHART/TABLE - Criteria: 2021-2022 Federal Student Aid Handbook, volume 3, chapter7: Depending on individual circumstance, students may receive only need-based aid, non-need-based aid, or a combination of need-based and non-need-based aid. The total amount of need-based aid cannot exceed the student's financial need and the total amount of all aid cannot exceed the student's cost of attendance. - Condition/context: A sample of 48 federal aid recipient students were selected from system generated reports of 790 students who were disbursed federal student aid during the 2021-2022 academic year. The student's records were inspected. - Effect: An exception was noted whereby one student was awarded aid in excess of their cost of attendance which resulted in an over award of $5,550 of federal direct subsidized loans. - Cause: The student was over awarded due to a weakness in the University's manual packaging process. The standard packaging process is done automatically. When the packaging is performed automatically there are triggers in the process that prevent over awarding. In the case of this student, it was done manually, and those checks and balances were never activated, because of this there was not flag to stop the awarding. - Repeat finding: This is not a repeat finding. - Recommendation: We recommend the University amend procedures so in teh event that packaging is done manually, there are added reviews over the student's aid awarded. - View of responsible officials and planned corrective actions: We accept Moss Adams' recommendation and if a situation arises where we must manually package a student, the procedure will include an additional review by another individual, either the Director or a Counselor, to review the package for accuracy.