Audit 27620

FY End
2022-06-30
Total Expended
$40.68M
Findings
4
Programs
9
Organization: Trevecca Nazarene University (TN)
Year: 2022 Accepted: 2022-10-30
Auditor: Capincrouse LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
20781 2022-001 Material Weakness Yes N
20782 2022-001 Material Weakness Yes N
597223 2022-001 Material Weakness Yes N
597224 2022-001 Material Weakness Yes N

Contacts

Name Title Type
XJ3RAMR9JH25 Mariano Monzu Auditee
6152481200 Rachel McMichael, 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 Trevecca Nazarene University (University) 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 University 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 Trevecca Nazarene University (University) 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 University 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 University 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 Trevecca Nazarene University (University) 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 University 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: FEDERAL PERKINS LOAN PROGRAM Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Trevecca Nazarene University (University) 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 University 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: COVID-19 TITLE IV TRANSFER AND EXPENSES Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Trevecca Nazarene University (University) 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 University 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. As allowed by the CARES Act sections 3503 and 3504 in response to COVID-19, the University transferred $196,300 of their unexpended Federal Work Study allocation to the Federal Supplemental Educational Opportunity Grants Program (FSEOG) and used those funds to award COVID-19 emergency FSEOG financial aid grants to students.

Finding Details

Incorrect and Untimely Return of Title IV (R2T4) Funds Calculations Material Weakness 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 due to late dates of determination. Additionally, there were several returns with the wrong information used in the calculation, causing the wrong amounts to be returned to Title IV. Criteria: 34 CFR 668.22 Questioned Costs: $1,042 Context: Out of 35 students tested for timely returns, there were 11 students who had a date of determination beyond 14 days. These delays resulted in 5 students with returns of Title IV funds totaling $10,565 ranging from 12 to 108 days late. Additionally, out of 35 students tested for proper R2T4 calculation, there were 5 students that had an incorrect R2T4 calculation, resulting in the wrong amount of funds returned. The errors included the wrong total number of calendar days, last date of attendance, and amounts actually disbursed. This resulted in $1,559 of unsubsidized loans being returned that were not required to be returned and $1,042 in additional Pell grants that need to be returned by the University. Cause: Due to the complexity of the new modular regulations, turn over in staffing, and delays from other offices, the University was not able to comply with Title IV regulations for timely and accurate returns. Effect: Noncompliance with new R2T4 regulations regarding withdrawals for modular students, late returns to Title IV, and inaccurate amounts returned to Title IV. Identification as repeat finding, if applicable: 2021-001 Recommendation: We recommend an individual in financial aid with the appropriate level of experience periodically review modular students? R2T4 calculations and returns to help ensure that internal controls over such process can operate effectively and achieve compliance. Additionally, we recommend the University work with other University offices to review Title IV regulations for attendance taking schools to work to achieve compliance on the timeliness of returns to Title IV. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Incorrect and Untimely Return of Title IV (R2T4) Funds Calculations Material Weakness 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 due to late dates of determination. Additionally, there were several returns with the wrong information used in the calculation, causing the wrong amounts to be returned to Title IV. Criteria: 34 CFR 668.22 Questioned Costs: $1,042 Context: Out of 35 students tested for timely returns, there were 11 students who had a date of determination beyond 14 days. These delays resulted in 5 students with returns of Title IV funds totaling $10,565 ranging from 12 to 108 days late. Additionally, out of 35 students tested for proper R2T4 calculation, there were 5 students that had an incorrect R2T4 calculation, resulting in the wrong amount of funds returned. The errors included the wrong total number of calendar days, last date of attendance, and amounts actually disbursed. This resulted in $1,559 of unsubsidized loans being returned that were not required to be returned and $1,042 in additional Pell grants that need to be returned by the University. Cause: Due to the complexity of the new modular regulations, turn over in staffing, and delays from other offices, the University was not able to comply with Title IV regulations for timely and accurate returns. Effect: Noncompliance with new R2T4 regulations regarding withdrawals for modular students, late returns to Title IV, and inaccurate amounts returned to Title IV. Identification as repeat finding, if applicable: 2021-001 Recommendation: We recommend an individual in financial aid with the appropriate level of experience periodically review modular students? R2T4 calculations and returns to help ensure that internal controls over such process can operate effectively and achieve compliance. Additionally, we recommend the University work with other University offices to review Title IV regulations for attendance taking schools to work to achieve compliance on the timeliness of returns to Title IV. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Incorrect and Untimely Return of Title IV (R2T4) Funds Calculations Material Weakness 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 due to late dates of determination. Additionally, there were several returns with the wrong information used in the calculation, causing the wrong amounts to be returned to Title IV. Criteria: 34 CFR 668.22 Questioned Costs: $1,042 Context: Out of 35 students tested for timely returns, there were 11 students who had a date of determination beyond 14 days. These delays resulted in 5 students with returns of Title IV funds totaling $10,565 ranging from 12 to 108 days late. Additionally, out of 35 students tested for proper R2T4 calculation, there were 5 students that had an incorrect R2T4 calculation, resulting in the wrong amount of funds returned. The errors included the wrong total number of calendar days, last date of attendance, and amounts actually disbursed. This resulted in $1,559 of unsubsidized loans being returned that were not required to be returned and $1,042 in additional Pell grants that need to be returned by the University. Cause: Due to the complexity of the new modular regulations, turn over in staffing, and delays from other offices, the University was not able to comply with Title IV regulations for timely and accurate returns. Effect: Noncompliance with new R2T4 regulations regarding withdrawals for modular students, late returns to Title IV, and inaccurate amounts returned to Title IV. Identification as repeat finding, if applicable: 2021-001 Recommendation: We recommend an individual in financial aid with the appropriate level of experience periodically review modular students? R2T4 calculations and returns to help ensure that internal controls over such process can operate effectively and achieve compliance. Additionally, we recommend the University work with other University offices to review Title IV regulations for attendance taking schools to work to achieve compliance on the timeliness of returns to Title IV. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Incorrect and Untimely Return of Title IV (R2T4) Funds Calculations Material Weakness 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 due to late dates of determination. Additionally, there were several returns with the wrong information used in the calculation, causing the wrong amounts to be returned to Title IV. Criteria: 34 CFR 668.22 Questioned Costs: $1,042 Context: Out of 35 students tested for timely returns, there were 11 students who had a date of determination beyond 14 days. These delays resulted in 5 students with returns of Title IV funds totaling $10,565 ranging from 12 to 108 days late. Additionally, out of 35 students tested for proper R2T4 calculation, there were 5 students that had an incorrect R2T4 calculation, resulting in the wrong amount of funds returned. The errors included the wrong total number of calendar days, last date of attendance, and amounts actually disbursed. This resulted in $1,559 of unsubsidized loans being returned that were not required to be returned and $1,042 in additional Pell grants that need to be returned by the University. Cause: Due to the complexity of the new modular regulations, turn over in staffing, and delays from other offices, the University was not able to comply with Title IV regulations for timely and accurate returns. Effect: Noncompliance with new R2T4 regulations regarding withdrawals for modular students, late returns to Title IV, and inaccurate amounts returned to Title IV. Identification as repeat finding, if applicable: 2021-001 Recommendation: We recommend an individual in financial aid with the appropriate level of experience periodically review modular students? R2T4 calculations and returns to help ensure that internal controls over such process can operate effectively and achieve compliance. Additionally, we recommend the University work with other University offices to review Title IV regulations for attendance taking schools to work to achieve compliance on the timeliness of returns to Title IV. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.