FAC Explorer

Audit 2820

FY End
2023-05-31
Total Expended
$27.68M
Findings
6
Programs
8
Organization: Anderson University and Subsidiary (SC)
Year: 2023 Accepted: 2023-11-10
Auditor: Capincrouse LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1579 2023-001 Significant Deficiency - E
1580 2023-001 Significant Deficiency - E
1581 2023-001 Significant Deficiency - E
578021 2023-001 Significant Deficiency - E
578022 2023-001 Significant Deficiency - E
578023 2023-001 Significant Deficiency - E

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $22.11M Yes 1
84.063 Federal Pell Grant Program $3.39M Yes 1
84.038 Federal Perkins Loan Program $1.05M Yes 0
84.425 Covid-19 Education Stabilization Fund Heerf - Institutional Portion $826,949 Yes 0
84.033 Federal Work-Study Program $180,248 Yes 0
84.007 Federal Supplemental Educational Opportunity Grants $98,195 Yes 0
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $39,606 Yes 1
84.425 Covid-19 Education Stabilization Fund Heerf - Student Aid Portion $-13,885 Yes 0

Contacts

Name Title Type
MHZ5YM6YJ2C1 Victoria Pierce Auditee
8642312000 Rachel McMichael, CPA Auditor
No contacts on file

Notes to SEFA

Title: RELATIONSHIP TO THE CONSOLIDATED FINANCIAL STATEMENTS Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Anderson University and Subsidiary (University) under programs of the federal government for the year ended May 31, 2023. 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 the Notes to the SEFA for chart/table
Title: SUBRECIPIENTS, NON-CASH ASSISTANCE, FEDERAL INSURANCE, LOANS, AND LOAN GUARANTEES Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Anderson University and Subsidiary (University) under programs of the federal government for the year ended May 31, 2023. 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 Anderson University and Subsidiary (University) under programs of the federal government for the year ended May 31, 2023. 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 the Notes to the SEFA for chart/table

Finding Details

Finding 2023-001
Disbursements to Ineligible Students Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063, 84.379 Federal Award Identification #: 2022-2023 Financial Aid Year Condition: The University disbursed various federal financial assistance to students who were not eligible for that aid under the code of federal regulations for the specific program. Criteria: Federal Direct Loans: 34 CFR 685.203(d) and (e); TEACH Grant: 34 CFR 686.11(a); Pell Grant: 34 CFR 690.6(a) and (b) Questioned Costs: $13,320 Context: For Federal Direct Loans, out of 60 students tested for Direct Loan eligibility, specifically, awarding Direct Loans within aggregate loan limits as outlined in 34 CFR 685.203(d) and (e), there was 1 student who was disbursed aid above their aggregate loan limit. This error caused questioned costs of $220. For TEACH grant, out of 3 students tested for TEACH grant eligibility, there was 1 student who was disbursed TEACH grant who was not eligible due to not meeting the minimum GPA requirements as established under 34 CFR 686.11(a). There were questioned costs of $1,886. For Pell grant, out of 30 students tested for Pell grant eligibility, there was 1 student who had a previous bachelor’s degree and was, therefore, ineligible for the Pell grant amounts disbursed based on 34 CFR 690.6(a). A total of $10,342 was disbursed as questioned costs. Additionally, out of 30 students tested for proper Pell Grant based on eligible coursework, there was 1 student who had aid disbursed for a course that was not eligible for Pell grant, based on 34 CFR 690.6(b). This error caused questioned costs of $872. The University corrected all of the above items during the audit and returned all necessary funds to Department of Education. Cause: During the 2022-2023 financial aid award year, the University implemented a new financial aid processing system that was being configured throughout the award year. Due to this change, the University was not able to maintain compliance with various student eligibility requirements. Effect: Students who were not eligible for aid received aid. The University was required to return funds for students who were not eligible. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend that the University continue to assess areas for improvement in their new financial aid system and implement additional review over student eligibility before aid is disbursed. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2023-001
Disbursements to Ineligible Students Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063, 84.379 Federal Award Identification #: 2022-2023 Financial Aid Year Condition: The University disbursed various federal financial assistance to students who were not eligible for that aid under the code of federal regulations for the specific program. Criteria: Federal Direct Loans: 34 CFR 685.203(d) and (e); TEACH Grant: 34 CFR 686.11(a); Pell Grant: 34 CFR 690.6(a) and (b) Questioned Costs: $13,320 Context: For Federal Direct Loans, out of 60 students tested for Direct Loan eligibility, specifically, awarding Direct Loans within aggregate loan limits as outlined in 34 CFR 685.203(d) and (e), there was 1 student who was disbursed aid above their aggregate loan limit. This error caused questioned costs of $220. For TEACH grant, out of 3 students tested for TEACH grant eligibility, there was 1 student who was disbursed TEACH grant who was not eligible due to not meeting the minimum GPA requirements as established under 34 CFR 686.11(a). There were questioned costs of $1,886. For Pell grant, out of 30 students tested for Pell grant eligibility, there was 1 student who had a previous bachelor’s degree and was, therefore, ineligible for the Pell grant amounts disbursed based on 34 CFR 690.6(a). A total of $10,342 was disbursed as questioned costs. Additionally, out of 30 students tested for proper Pell Grant based on eligible coursework, there was 1 student who had aid disbursed for a course that was not eligible for Pell grant, based on 34 CFR 690.6(b). This error caused questioned costs of $872. The University corrected all of the above items during the audit and returned all necessary funds to Department of Education. Cause: During the 2022-2023 financial aid award year, the University implemented a new financial aid processing system that was being configured throughout the award year. Due to this change, the University was not able to maintain compliance with various student eligibility requirements. Effect: Students who were not eligible for aid received aid. The University was required to return funds for students who were not eligible. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend that the University continue to assess areas for improvement in their new financial aid system and implement additional review over student eligibility before aid is disbursed. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2023-001
Disbursements to Ineligible Students Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063, 84.379 Federal Award Identification #: 2022-2023 Financial Aid Year Condition: The University disbursed various federal financial assistance to students who were not eligible for that aid under the code of federal regulations for the specific program. Criteria: Federal Direct Loans: 34 CFR 685.203(d) and (e); TEACH Grant: 34 CFR 686.11(a); Pell Grant: 34 CFR 690.6(a) and (b) Questioned Costs: $13,320 Context: For Federal Direct Loans, out of 60 students tested for Direct Loan eligibility, specifically, awarding Direct Loans within aggregate loan limits as outlined in 34 CFR 685.203(d) and (e), there was 1 student who was disbursed aid above their aggregate loan limit. This error caused questioned costs of $220. For TEACH grant, out of 3 students tested for TEACH grant eligibility, there was 1 student who was disbursed TEACH grant who was not eligible due to not meeting the minimum GPA requirements as established under 34 CFR 686.11(a). There were questioned costs of $1,886. For Pell grant, out of 30 students tested for Pell grant eligibility, there was 1 student who had a previous bachelor’s degree and was, therefore, ineligible for the Pell grant amounts disbursed based on 34 CFR 690.6(a). A total of $10,342 was disbursed as questioned costs. Additionally, out of 30 students tested for proper Pell Grant based on eligible coursework, there was 1 student who had aid disbursed for a course that was not eligible for Pell grant, based on 34 CFR 690.6(b). This error caused questioned costs of $872. The University corrected all of the above items during the audit and returned all necessary funds to Department of Education. Cause: During the 2022-2023 financial aid award year, the University implemented a new financial aid processing system that was being configured throughout the award year. Due to this change, the University was not able to maintain compliance with various student eligibility requirements. Effect: Students who were not eligible for aid received aid. The University was required to return funds for students who were not eligible. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend that the University continue to assess areas for improvement in their new financial aid system and implement additional review over student eligibility before aid is disbursed. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2023-001
Disbursements to Ineligible Students Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063, 84.379 Federal Award Identification #: 2022-2023 Financial Aid Year Condition: The University disbursed various federal financial assistance to students who were not eligible for that aid under the code of federal regulations for the specific program. Criteria: Federal Direct Loans: 34 CFR 685.203(d) and (e); TEACH Grant: 34 CFR 686.11(a); Pell Grant: 34 CFR 690.6(a) and (b) Questioned Costs: $13,320 Context: For Federal Direct Loans, out of 60 students tested for Direct Loan eligibility, specifically, awarding Direct Loans within aggregate loan limits as outlined in 34 CFR 685.203(d) and (e), there was 1 student who was disbursed aid above their aggregate loan limit. This error caused questioned costs of $220. For TEACH grant, out of 3 students tested for TEACH grant eligibility, there was 1 student who was disbursed TEACH grant who was not eligible due to not meeting the minimum GPA requirements as established under 34 CFR 686.11(a). There were questioned costs of $1,886. For Pell grant, out of 30 students tested for Pell grant eligibility, there was 1 student who had a previous bachelor’s degree and was, therefore, ineligible for the Pell grant amounts disbursed based on 34 CFR 690.6(a). A total of $10,342 was disbursed as questioned costs. Additionally, out of 30 students tested for proper Pell Grant based on eligible coursework, there was 1 student who had aid disbursed for a course that was not eligible for Pell grant, based on 34 CFR 690.6(b). This error caused questioned costs of $872. The University corrected all of the above items during the audit and returned all necessary funds to Department of Education. Cause: During the 2022-2023 financial aid award year, the University implemented a new financial aid processing system that was being configured throughout the award year. Due to this change, the University was not able to maintain compliance with various student eligibility requirements. Effect: Students who were not eligible for aid received aid. The University was required to return funds for students who were not eligible. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend that the University continue to assess areas for improvement in their new financial aid system and implement additional review over student eligibility before aid is disbursed. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2023-001
Disbursements to Ineligible Students Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063, 84.379 Federal Award Identification #: 2022-2023 Financial Aid Year Condition: The University disbursed various federal financial assistance to students who were not eligible for that aid under the code of federal regulations for the specific program. Criteria: Federal Direct Loans: 34 CFR 685.203(d) and (e); TEACH Grant: 34 CFR 686.11(a); Pell Grant: 34 CFR 690.6(a) and (b) Questioned Costs: $13,320 Context: For Federal Direct Loans, out of 60 students tested for Direct Loan eligibility, specifically, awarding Direct Loans within aggregate loan limits as outlined in 34 CFR 685.203(d) and (e), there was 1 student who was disbursed aid above their aggregate loan limit. This error caused questioned costs of $220. For TEACH grant, out of 3 students tested for TEACH grant eligibility, there was 1 student who was disbursed TEACH grant who was not eligible due to not meeting the minimum GPA requirements as established under 34 CFR 686.11(a). There were questioned costs of $1,886. For Pell grant, out of 30 students tested for Pell grant eligibility, there was 1 student who had a previous bachelor’s degree and was, therefore, ineligible for the Pell grant amounts disbursed based on 34 CFR 690.6(a). A total of $10,342 was disbursed as questioned costs. Additionally, out of 30 students tested for proper Pell Grant based on eligible coursework, there was 1 student who had aid disbursed for a course that was not eligible for Pell grant, based on 34 CFR 690.6(b). This error caused questioned costs of $872. The University corrected all of the above items during the audit and returned all necessary funds to Department of Education. Cause: During the 2022-2023 financial aid award year, the University implemented a new financial aid processing system that was being configured throughout the award year. Due to this change, the University was not able to maintain compliance with various student eligibility requirements. Effect: Students who were not eligible for aid received aid. The University was required to return funds for students who were not eligible. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend that the University continue to assess areas for improvement in their new financial aid system and implement additional review over student eligibility before aid is disbursed. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2023-001
Disbursements to Ineligible Students Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063, 84.379 Federal Award Identification #: 2022-2023 Financial Aid Year Condition: The University disbursed various federal financial assistance to students who were not eligible for that aid under the code of federal regulations for the specific program. Criteria: Federal Direct Loans: 34 CFR 685.203(d) and (e); TEACH Grant: 34 CFR 686.11(a); Pell Grant: 34 CFR 690.6(a) and (b) Questioned Costs: $13,320 Context: For Federal Direct Loans, out of 60 students tested for Direct Loan eligibility, specifically, awarding Direct Loans within aggregate loan limits as outlined in 34 CFR 685.203(d) and (e), there was 1 student who was disbursed aid above their aggregate loan limit. This error caused questioned costs of $220. For TEACH grant, out of 3 students tested for TEACH grant eligibility, there was 1 student who was disbursed TEACH grant who was not eligible due to not meeting the minimum GPA requirements as established under 34 CFR 686.11(a). There were questioned costs of $1,886. For Pell grant, out of 30 students tested for Pell grant eligibility, there was 1 student who had a previous bachelor’s degree and was, therefore, ineligible for the Pell grant amounts disbursed based on 34 CFR 690.6(a). A total of $10,342 was disbursed as questioned costs. Additionally, out of 30 students tested for proper Pell Grant based on eligible coursework, there was 1 student who had aid disbursed for a course that was not eligible for Pell grant, based on 34 CFR 690.6(b). This error caused questioned costs of $872. The University corrected all of the above items during the audit and returned all necessary funds to Department of Education. Cause: During the 2022-2023 financial aid award year, the University implemented a new financial aid processing system that was being configured throughout the award year. Due to this change, the University was not able to maintain compliance with various student eligibility requirements. Effect: Students who were not eligible for aid received aid. The University was required to return funds for students who were not eligible. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend that the University continue to assess areas for improvement in their new financial aid system and implement additional review over student eligibility before aid is disbursed. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.