FAC Explorer

Audit 27607

FY End
2022-06-30
Total Expended
$63.14M
Findings
4
Programs
17
Organization: Stetson University, Inc. (FL)
Year: 2022 Accepted: 2023-01-03
Auditor: Rsm US LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
31860 2022-001 - Yes N
31861 2022-002 - - N
608302 2022-001 - Yes N
608303 2022-002 - - N

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $47.09M Yes 2
84.063 Federal Pell Grant Program $5.10M Yes 0
84.425 Covid-19 Education Stabilization Fund $4.96M Yes 0
84.038 Federal Perkins Loan Program $3.39M Yes 0
84.007 Federal Supplemental Educational Opportunity Grants $686,813 Yes 0
97.036 Covid-19: Disaster Grants - Public Assistance (presidentially Declared Disasters) $618,158 - 0
84.033 Federal Work-Study Program $605,111 Yes 0
93.732 Mental and Behavioral Health Education and Training Grants $190,813 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $96,680 - 0
47.076 Education and Human Resources $69,857 - 0
16.525 Grants to Reduce Domestic Violence, Dating Violence, Sexual Assault, and Stalking on Campus $68,717 - 0
11.417 Sea Grant Support $45,488 - 0
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $37,720 Yes 0
15.931 Conservation Activities by Youth Service Organizations $20,000 - 0
11.419 Coastal Zone Management Administration Awards $19,000 - 0
47.074 Biological Sciences $15,258 - 0
66.462 National Wetland Program Development Grants and Five-Star Restoration Training Grant $4,290 - 0

Contacts

Name Title Type
LPBLQUYKQKJ3 Jeffrey Margheim Auditee
3868227019 Thomas J. Sneeringer Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances 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 the Uniform Guidance, where in certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures for student financial aid programs are recognized as incurred and include the federal share of students Federal Supplemental Educational Opportunity Grant (FSEOG) program and FWS program earnings, Federal Pell Grants, certain other federal financial aid grants for students, loan disbursements and administrative cost allowance, where applicable. De Minimis Rate Used: N Rate Explanation: Expenditures include indirect costs, related primarily to facilities operations and maintenance and generaldivisional and departmental administrative services, which are allocated to direct cost objectives(including federal awards) based on negotiated formulas commonly referred to as facilities andadministrative cost rates. Facilities and administrative cost rates allocated to such awards for the yearended June 30, 2022, were based on fixed rates negotiated with the respective federal agencies. TheUniversity has not elected to use the 10% de minimis indirect cost rate as allowed under the UniformGuidance. The Federal Perkins Loan program listed below is administered directly by the University and balancesand transactions relating to this program are included in the Universitys basic consolidated financialstatements. Loans made during the year are included in the federal expenditures presented in theSchedule. The balance of loans outstanding at June 30, 2022, was 2835312. The Federal Perkins Loan Program expired September 30, 2017, and fiscal year 2018 was the last yearthat the University could award Perkins loans based on action established by the Department ofEducation. Accordingly, the University did not award any Perkins loans in fiscal year 2022. The Universitywill be liquidating its Federal Perkins Revolving Loan Fund at the direction of the Department ofEducation. The liquidation will likely involve the University assigning all eligible outstanding loans to theDepartment of Education and the remittance of federal share of remaining Perkins cash assets to theDepartment of Education. Until liquidation is complete, the University is required to return the federalshare of collections from students on an annual basis.
Title: Subrecipient 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 the Uniform Guidance, where in certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures for student financial aid programs are recognized as incurred and include the federal share of students Federal Supplemental Educational Opportunity Grant (FSEOG) program and FWS program earnings, Federal Pell Grants, certain other federal financial aid grants for students, loan disbursements and administrative cost allowance, where applicable. De Minimis Rate Used: N Rate Explanation: Expenditures include indirect costs, related primarily to facilities operations and maintenance and generaldivisional and departmental administrative services, which are allocated to direct cost objectives(including federal awards) based on negotiated formulas commonly referred to as facilities andadministrative cost rates. Facilities and administrative cost rates allocated to such awards for the yearended June 30, 2022, were based on fixed rates negotiated with the respective federal agencies. TheUniversity has not elected to use the 10% de minimis indirect cost rate as allowed under the UniformGuidance. There were no program funds passed through the University to subrecipient organizations.
Title: Basis of Presentation 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 the Uniform Guidance, where in certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures for student financial aid programs are recognized as incurred and include the federal share of students Federal Supplemental Educational Opportunity Grant (FSEOG) program and FWS program earnings, Federal Pell Grants, certain other federal financial aid grants for students, loan disbursements and administrative cost allowance, where applicable. De Minimis Rate Used: N Rate Explanation: Expenditures include indirect costs, related primarily to facilities operations and maintenance and generaldivisional and departmental administrative services, which are allocated to direct cost objectives(including federal awards) based on negotiated formulas commonly referred to as facilities andadministrative cost rates. Facilities and administrative cost rates allocated to such awards for the yearended June 30, 2022, were based on fixed rates negotiated with the respective federal agencies. TheUniversity has not elected to use the 10% de minimis indirect cost rate as allowed under the UniformGuidance. The accompanying schedule of expenditures of federal and state awards (the Schedule) includes grants, contracts and similar agreements entered into directly between Stetson University, Inc. (the University) and agencies and departments of federal and state governments. They also include all subawards to the University by nonfederal organizations pursuant to federal and state grants, contracts and similar agreements. 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) and Chapter 10.650, Rules of the Auditor General of the State of Florida. Because the Schedule presents only a selected portion of the operations of the University, it is not intended to and does not present the financial position, changes in net assets or cash flows for the University.For the Federal Work Study (FWS) and Federal Supplemental Educational Opportunity Grant (FSEOG), the expenditures listed are only the federal share. The Universitys match was $183,720 for FWS and $299,995 for FSEOG.Also, the grants reflect transactions for the June 30, 2022, fiscal year irrespective of the year of grant award and, accordingly, the Schedule does not include a full years activity for grants awarded or terminated on dates not coinciding with the aforementioned fiscal year.
Title: Federal Direct Loan Program 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 the Uniform Guidance, where in certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures for student financial aid programs are recognized as incurred and include the federal share of students Federal Supplemental Educational Opportunity Grant (FSEOG) program and FWS program earnings, Federal Pell Grants, certain other federal financial aid grants for students, loan disbursements and administrative cost allowance, where applicable. De Minimis Rate Used: N Rate Explanation: Expenditures include indirect costs, related primarily to facilities operations and maintenance and generaldivisional and departmental administrative services, which are allocated to direct cost objectives(including federal awards) based on negotiated formulas commonly referred to as facilities andadministrative cost rates. Facilities and administrative cost rates allocated to such awards for the yearended June 30, 2022, were based on fixed rates negotiated with the respective federal agencies. TheUniversity has not elected to use the 10% de minimis indirect cost rate as allowed under the UniformGuidance. The University distributed $47,091,783 of federally guaranteed loans to students of the University through the Federal Direct Loan program (Assistance Listing Number 84.268), which includes Direct Subsidized and Unsubsidized Loans, and Direct Parent Loans for Undergraduate Students. These distributions and the related funding sources are not included in the Universitys consolidated financial statements.

Finding Details

Finding 2022-001
2022-001: Enrollment Reporting Identification of the federal program: U.S. Department of Education Student Financial Aid Cluster Criteria or specific requirement: Uniform Guidance for Student Financial Aid (SFA) Programs {III. Compliance Requirements, N. Special Tests and Provisions, 4. Enrollment Reporting? Compliance requirements (34 CFR 685.309 (b)(2)(i))} stipulates that unless it expects to submit its next updated enrollment report to the secretary within the next 60 days, the school must notify the secretary within 30 days after the date the school discovers that a loan under title IV of the Act was made to or on behalf of a student who was enrolled or accepted for enrollment at the school, and the student has ceased to be enrolled on at least a half-time basis or failed to enroll on at least a half-time basis for the period for which the loan was intended. Condition: The University did not properly provide to the National Student Loan Data System (NSLDS) notification for one student who withdrew or graduated during fiscal year 2022. Cause: The University did not submit the status update in a timely manner. Effect or potential effect: Notification of change in enrollment status was not provided in a timely manner. Enrollment status is critical for effective management of the programs and determines eligibility for in-school status, deferment and grace periods that can affect the student. Questioned costs: None Context: We selected a total of 40 students to test that the change in student status for those who withdrew or graduated who had received Direct Loans was reported to the NSLDS within 30 days or was included in a SSCR (Student Status Confirmation Report) within 60 days from the date of the change in status. Management had a process in place to ensure timely notification; however, in this one instance, the student?s status was not updated in a timely manner by the University. Repeat finding: Yes (Finding 2021-001) Recommendation: We recommend management implement a review process to ensure that all degree transmissions submitted to its third-party servicer are complete and accurate, and timely, so that submissions to the NSLDS are also complete, accurate, and timely. We further recommend that the University develop a process to ensure that timely reporting of student status changes has been performed by its third-party servicer. Views of responsible officials: The University agrees with the finding. Refer to the University?s Corrective Action Plan.
Finding 2022-002
Identification of the federal program: U.S. Department of Education Student Financial Aid Cluster Criteria or specific requirement: Uniform Guidance for Student Financial Aid (SFA) Programs {III. Compliance Requirements, N. Special Tests and Provisions, 3. Return of Title IV Funds? Compliance requirements (34 CFR 668.22 (a)(1) through (a)(5))} stipulates that when a recipient of Title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV aid earned by the student as of the student?s withdrawal date. If the total amount of Title IV assistance earned by the student is less than the amount that was disbursed to the student on their behalf as of the date of the institution?s determination that the student withdrew, the difference must be returned to the Title IV programs. Condition: The University did not properly return Title IV funds for two students who withdrew during fiscal year 2022. Cause: The University?s Banner system did not properly capture the required credit to the students? account. Effect or potential effect: Unearned Title IV funds are not properly returned. Questioned costs: None Context: We selected a total of 11 students who withdrew during the fiscal year to test that calculation of Title IV funds to be returned are properly performed and funds are received from students in compliance with Title IV standards. Two instances of noncompliance were identified in which funds were either not collected from the student or funds were incorrectly awarded after collection was made. Repeat finding: No Recommendation: We recommend management implement a review process to ensure that all Title IV funds are properly received for applicable withdrawn students. Views of responsible officials: The University agrees with the finding. Refer to the University?s Corrective Action Plan.
Finding 2022-001
2022-001: Enrollment Reporting Identification of the federal program: U.S. Department of Education Student Financial Aid Cluster Criteria or specific requirement: Uniform Guidance for Student Financial Aid (SFA) Programs {III. Compliance Requirements, N. Special Tests and Provisions, 4. Enrollment Reporting? Compliance requirements (34 CFR 685.309 (b)(2)(i))} stipulates that unless it expects to submit its next updated enrollment report to the secretary within the next 60 days, the school must notify the secretary within 30 days after the date the school discovers that a loan under title IV of the Act was made to or on behalf of a student who was enrolled or accepted for enrollment at the school, and the student has ceased to be enrolled on at least a half-time basis or failed to enroll on at least a half-time basis for the period for which the loan was intended. Condition: The University did not properly provide to the National Student Loan Data System (NSLDS) notification for one student who withdrew or graduated during fiscal year 2022. Cause: The University did not submit the status update in a timely manner. Effect or potential effect: Notification of change in enrollment status was not provided in a timely manner. Enrollment status is critical for effective management of the programs and determines eligibility for in-school status, deferment and grace periods that can affect the student. Questioned costs: None Context: We selected a total of 40 students to test that the change in student status for those who withdrew or graduated who had received Direct Loans was reported to the NSLDS within 30 days or was included in a SSCR (Student Status Confirmation Report) within 60 days from the date of the change in status. Management had a process in place to ensure timely notification; however, in this one instance, the student?s status was not updated in a timely manner by the University. Repeat finding: Yes (Finding 2021-001) Recommendation: We recommend management implement a review process to ensure that all degree transmissions submitted to its third-party servicer are complete and accurate, and timely, so that submissions to the NSLDS are also complete, accurate, and timely. We further recommend that the University develop a process to ensure that timely reporting of student status changes has been performed by its third-party servicer. Views of responsible officials: The University agrees with the finding. Refer to the University?s Corrective Action Plan.
Finding 2022-002
Identification of the federal program: U.S. Department of Education Student Financial Aid Cluster Criteria or specific requirement: Uniform Guidance for Student Financial Aid (SFA) Programs {III. Compliance Requirements, N. Special Tests and Provisions, 3. Return of Title IV Funds? Compliance requirements (34 CFR 668.22 (a)(1) through (a)(5))} stipulates that when a recipient of Title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV aid earned by the student as of the student?s withdrawal date. If the total amount of Title IV assistance earned by the student is less than the amount that was disbursed to the student on their behalf as of the date of the institution?s determination that the student withdrew, the difference must be returned to the Title IV programs. Condition: The University did not properly return Title IV funds for two students who withdrew during fiscal year 2022. Cause: The University?s Banner system did not properly capture the required credit to the students? account. Effect or potential effect: Unearned Title IV funds are not properly returned. Questioned costs: None Context: We selected a total of 11 students who withdrew during the fiscal year to test that calculation of Title IV funds to be returned are properly performed and funds are received from students in compliance with Title IV standards. Two instances of noncompliance were identified in which funds were either not collected from the student or funds were incorrectly awarded after collection was made. Repeat finding: No Recommendation: We recommend management implement a review process to ensure that all Title IV funds are properly received for applicable withdrawn students. Views of responsible officials: The University agrees with the finding. Refer to the University?s Corrective Action Plan.