Audit 28019

FY End
2022-06-30
Total Expended
$19.22M
Findings
4
Programs
11
Organization: Coe College (IA)
Year: 2022 Accepted: 2022-11-09
Auditor: Rsm US LLP

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
36981 2022-001 - - C
36982 2022-001 - - C
613423 2022-001 - - C
613424 2022-001 - - C

Contacts

Name Title Type
MYBRQL7HA4T1 Angie Calhoun Auditee
3193998699 Jenna Bunkers Auditor
No contacts on file

Notes to SEFA

Title: Federal Loan Programs Accounting Policies: Expenditures recognized 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. De Minimis Rate Used: N Rate Explanation: Coe College has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The Federal Perkins Loan Program expired on September 30, 2017. As such, there were no Federal Perkins loans issued during the year. Federal Perkins loans outstanding as of June 30, 2022 were $2,922,057. In the current year, there was no federal capital contribution for the Federal Perkins Loan Program for the College, and accordingly, there was no match. During the fiscal year ended June 30,2022, the College issued new loans to students under the Federal Direct Student Loan Program (FDLP). The loan program includes unsubsidized Stafford Loans, Parent PLUS Loans, and PLUS Loans for graduate students. The value of loans issued for the FDLP is based on disbursed amounts. The loan amounts issued during the year are disclosed on the Schedule. The College is responsible only for the performance of certain administrative duties with respect to the federally guaranteed student loan programs and, accordingly, balances and transactions relating to these loan programs are not included in the Colleges basic financial statements. Therefore, it is not practicable to determine the balance of loans outstanding to students and former students of the College at June 30,2022.
Title: Basis of Presentation Accounting Policies: Expenditures recognized 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. De Minimis Rate Used: N Rate Explanation: Coe College has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Coe College (the College) under programs of the federal government for the year ended June 30, 2022. The information in the 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 College, it is not intended to and does not present the financial position, changes in net assets or cash flows of the College.The College includes loans granted under the Federal Perkins Loan Program and Federal Direct Student Loan Program as expenditures of federal awards.

Finding Details

2022-001 U.S. Department of Education Student Financial Assistance Programs Cluster Federal Direct Student Loan Program (Federal Assistance Listing Number 84.268) and COVID-19 Education Stabilization Fund ? ARPA Student Portion (Federal Assistance Listing Number 84.425F) Federal Award Year: 2021-2022 Finding: The College did not return excess Federal Direct Student Loan funds and the student portion of COVID-19 Education Stabilization funds within the required timeframe. Criteria: Per 34 CFR 668.162(b)(3), an institution must disburse the funds required as soon as administratively feasible, but no later than three business days by the institution. Per 34 CFR 668.166(a) and (b), an excess cash balance tolerance is allowed if that balance is less than 1% of its prior year drawdowns and is eliminated within the next seven calendar days. Condition: The College drew down excess Federal Direct Student Loan funds and the student portion of COVID-19 Education Stabilization funds that were not properly disbursed to students or returned to the Department of Education within the required timeframe. Cause: The Business Office was not aware the excess funds related to the Federal Direct Student Loan program were on hand until the month-end reconciliation process, which was beyond the refund period. In regards to the student portion of COVID-19 Education Stabilization funds, there were 8 checks that were issued to students during 2021 and not cashed, and therefore subsequently being cancelled during 2022, resulting in the excess funds on hand. Effect: Funds were drawn in excess of disbursed funds and the funds remained in excess beyond the allowed days. Context: Two of 32 drawdowns. Questioned costs: $5,224 of excess cash draw related to Federal Direct Student Loan funds and $3,776 of excess cash related to the student portion of COVID-19 Education Stabilization funds that were returned to the Department of Education after the required timeframe. Recommendation: Management should review and verify federal funds requested in excess are timely returned to the Department of Education in order to comply with federal regulations. Views of responsible officials: Management agrees with this finding. Please see corrective action plan attached.
2022-001 U.S. Department of Education Student Financial Assistance Programs Cluster Federal Direct Student Loan Program (Federal Assistance Listing Number 84.268) and COVID-19 Education Stabilization Fund ? ARPA Student Portion (Federal Assistance Listing Number 84.425F) Federal Award Year: 2021-2022 Finding: The College did not return excess Federal Direct Student Loan funds and the student portion of COVID-19 Education Stabilization funds within the required timeframe. Criteria: Per 34 CFR 668.162(b)(3), an institution must disburse the funds required as soon as administratively feasible, but no later than three business days by the institution. Per 34 CFR 668.166(a) and (b), an excess cash balance tolerance is allowed if that balance is less than 1% of its prior year drawdowns and is eliminated within the next seven calendar days. Condition: The College drew down excess Federal Direct Student Loan funds and the student portion of COVID-19 Education Stabilization funds that were not properly disbursed to students or returned to the Department of Education within the required timeframe. Cause: The Business Office was not aware the excess funds related to the Federal Direct Student Loan program were on hand until the month-end reconciliation process, which was beyond the refund period. In regards to the student portion of COVID-19 Education Stabilization funds, there were 8 checks that were issued to students during 2021 and not cashed, and therefore subsequently being cancelled during 2022, resulting in the excess funds on hand. Effect: Funds were drawn in excess of disbursed funds and the funds remained in excess beyond the allowed days. Context: Two of 32 drawdowns. Questioned costs: $5,224 of excess cash draw related to Federal Direct Student Loan funds and $3,776 of excess cash related to the student portion of COVID-19 Education Stabilization funds that were returned to the Department of Education after the required timeframe. Recommendation: Management should review and verify federal funds requested in excess are timely returned to the Department of Education in order to comply with federal regulations. Views of responsible officials: Management agrees with this finding. Please see corrective action plan attached.
2022-001 U.S. Department of Education Student Financial Assistance Programs Cluster Federal Direct Student Loan Program (Federal Assistance Listing Number 84.268) and COVID-19 Education Stabilization Fund ? ARPA Student Portion (Federal Assistance Listing Number 84.425F) Federal Award Year: 2021-2022 Finding: The College did not return excess Federal Direct Student Loan funds and the student portion of COVID-19 Education Stabilization funds within the required timeframe. Criteria: Per 34 CFR 668.162(b)(3), an institution must disburse the funds required as soon as administratively feasible, but no later than three business days by the institution. Per 34 CFR 668.166(a) and (b), an excess cash balance tolerance is allowed if that balance is less than 1% of its prior year drawdowns and is eliminated within the next seven calendar days. Condition: The College drew down excess Federal Direct Student Loan funds and the student portion of COVID-19 Education Stabilization funds that were not properly disbursed to students or returned to the Department of Education within the required timeframe. Cause: The Business Office was not aware the excess funds related to the Federal Direct Student Loan program were on hand until the month-end reconciliation process, which was beyond the refund period. In regards to the student portion of COVID-19 Education Stabilization funds, there were 8 checks that were issued to students during 2021 and not cashed, and therefore subsequently being cancelled during 2022, resulting in the excess funds on hand. Effect: Funds were drawn in excess of disbursed funds and the funds remained in excess beyond the allowed days. Context: Two of 32 drawdowns. Questioned costs: $5,224 of excess cash draw related to Federal Direct Student Loan funds and $3,776 of excess cash related to the student portion of COVID-19 Education Stabilization funds that were returned to the Department of Education after the required timeframe. Recommendation: Management should review and verify federal funds requested in excess are timely returned to the Department of Education in order to comply with federal regulations. Views of responsible officials: Management agrees with this finding. Please see corrective action plan attached.
2022-001 U.S. Department of Education Student Financial Assistance Programs Cluster Federal Direct Student Loan Program (Federal Assistance Listing Number 84.268) and COVID-19 Education Stabilization Fund ? ARPA Student Portion (Federal Assistance Listing Number 84.425F) Federal Award Year: 2021-2022 Finding: The College did not return excess Federal Direct Student Loan funds and the student portion of COVID-19 Education Stabilization funds within the required timeframe. Criteria: Per 34 CFR 668.162(b)(3), an institution must disburse the funds required as soon as administratively feasible, but no later than three business days by the institution. Per 34 CFR 668.166(a) and (b), an excess cash balance tolerance is allowed if that balance is less than 1% of its prior year drawdowns and is eliminated within the next seven calendar days. Condition: The College drew down excess Federal Direct Student Loan funds and the student portion of COVID-19 Education Stabilization funds that were not properly disbursed to students or returned to the Department of Education within the required timeframe. Cause: The Business Office was not aware the excess funds related to the Federal Direct Student Loan program were on hand until the month-end reconciliation process, which was beyond the refund period. In regards to the student portion of COVID-19 Education Stabilization funds, there were 8 checks that were issued to students during 2021 and not cashed, and therefore subsequently being cancelled during 2022, resulting in the excess funds on hand. Effect: Funds were drawn in excess of disbursed funds and the funds remained in excess beyond the allowed days. Context: Two of 32 drawdowns. Questioned costs: $5,224 of excess cash draw related to Federal Direct Student Loan funds and $3,776 of excess cash related to the student portion of COVID-19 Education Stabilization funds that were returned to the Department of Education after the required timeframe. Recommendation: Management should review and verify federal funds requested in excess are timely returned to the Department of Education in order to comply with federal regulations. Views of responsible officials: Management agrees with this finding. Please see corrective action plan attached.