FAC Explorer

Audit 2823

FY End
2023-05-31
Total Expended
$16.84M
Findings
6
Programs
5
Organization: North Greenville University (SC)
Year: 2023 Accepted: 2023-11-10
Auditor: Capincrouse LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1582 2023-001 Significant Deficiency - N
1583 2023-001 Significant Deficiency - N
1584 2023-002 - - E
578024 2023-001 Significant Deficiency - N
578025 2023-001 Significant Deficiency - N
578026 2023-002 - - E

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $13.41M Yes 2
84.063 Federal Pell Grant Program $3.03M Yes 1
84.007 Federal Supplemental Educational Opportunity Grants $189,241 Yes 0
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $136,996 Yes 0
84.033 Federal Work-Study Program $73,538 Yes 0

Contacts

Name Title Type
LBH5QLJ6R536 Rachel Russiaky Auditee
8649777190 Dan Campbell, 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 North Greenville University (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 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 North Greenville University (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 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.

Finding Details

Finding 2023-001
Inaccurate and Untimely Return of Title IV Funds (R2T4) Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2022-2023 Financial Aid Year Condition: There were two incorrect calculations of returned funds for students that withdrew during the 2022-2023 academic year. Criteria: 34 CFR 668.22 Questioned Costs: $4,275 Context: Out of 10 withdrawal evaluations tested for accuracy and timeliness, 1 student in a modular program had incorrect R2T4 calculations both in the Fall 2022 and Spring 2023 terms. In the Fall 2022 term, it was incorrectly determined that the student met the 49% successful completion exemption. In result, a return of Title IV funds was never made for the student in the Fall term. In the Spring 2023 term, the R2T4 was inaccurately calculated due to incorrect institutional charges and initial unsubsidized loans included in the calculation. In result, the University did not return enough Title IV Funds ($4,135 FDL, $140 Pell). These were corrected during the audit. Cause: R2T4 calculations were not reviewed for accuracy. There were errors in how the student’s R2T4’s were calculated for both terms. Regarding the Fall 2022 the missed return, PowerFAIDs is set up to automatically calculate returns when student withdraw or cease attendance, however, financial aid staff overrode the student’s completion percentage to 100% because of the misinterpretation of the modular exemption criteria, therefore a return was not calculated. Regarding the Spring 2023 inaccurate return, the financial aid office received the student's account statement after tuition and fees were adjusted and incorrectly input the adjusted charges into the calculation. Effect: Return of Title IV funds were not performed timely and an incorrect amount of unearned Title IV funds returned. Identification as repeat finding, if applicable: N/A 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 processes can operate effectively and achieve compliance. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2023-001
Inaccurate and Untimely Return of Title IV Funds (R2T4) Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2022-2023 Financial Aid Year Condition: There were two incorrect calculations of returned funds for students that withdrew during the 2022-2023 academic year. Criteria: 34 CFR 668.22 Questioned Costs: $4,275 Context: Out of 10 withdrawal evaluations tested for accuracy and timeliness, 1 student in a modular program had incorrect R2T4 calculations both in the Fall 2022 and Spring 2023 terms. In the Fall 2022 term, it was incorrectly determined that the student met the 49% successful completion exemption. In result, a return of Title IV funds was never made for the student in the Fall term. In the Spring 2023 term, the R2T4 was inaccurately calculated due to incorrect institutional charges and initial unsubsidized loans included in the calculation. In result, the University did not return enough Title IV Funds ($4,135 FDL, $140 Pell). These were corrected during the audit. Cause: R2T4 calculations were not reviewed for accuracy. There were errors in how the student’s R2T4’s were calculated for both terms. Regarding the Fall 2022 the missed return, PowerFAIDs is set up to automatically calculate returns when student withdraw or cease attendance, however, financial aid staff overrode the student’s completion percentage to 100% because of the misinterpretation of the modular exemption criteria, therefore a return was not calculated. Regarding the Spring 2023 inaccurate return, the financial aid office received the student's account statement after tuition and fees were adjusted and incorrectly input the adjusted charges into the calculation. Effect: Return of Title IV funds were not performed timely and an incorrect amount of unearned Title IV funds returned. Identification as repeat finding, if applicable: N/A 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 processes can operate effectively and achieve compliance. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2023-002
Need Analysis DEPARTMENT OF EDUCATION ALN #: 84.268 Federal Award Identification #: 2022-2023 Financial Aid Year Condition: Students were not appropriately awarded subsidized loans based on need. Criteria: 34 CFR 685.203, 34 CFR 685.301 Questioned Costs: $0 Context: Out of 60 students tested, 3 students were not awarded aid appropriately based on need analysis. One student received unsubsidized loans when they were eligible for $1,006 more in subsidized loans. One student had been offered maximum subsidized and unsubsidized loans and only accepted $1,000 in unsubsidized loans. Instead of allocating the student to subsidized loans, the University disbursed them as unsubsidized loans. One student was awarded subsidized loans in excess of need by $435 because of $1,000 of unsubsidized loans being transferred to subsidized loans late in the Spring term to award the student to 3rd-year level maximum eligibility. These students’ aid was reallocated during the audit process. Cause: This was an oversight by the University. Effect: Incorrect allocation of subsidized versus unsubsidized, which affects the amount and timing of interest the student must repay. Identification as repeat finding, if applicable: N/A Recommendation: We recommend that the University set up reports in the student information system to periodically check for over or under awarding of need-based federal aid. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2023-001
Inaccurate and Untimely Return of Title IV Funds (R2T4) Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2022-2023 Financial Aid Year Condition: There were two incorrect calculations of returned funds for students that withdrew during the 2022-2023 academic year. Criteria: 34 CFR 668.22 Questioned Costs: $4,275 Context: Out of 10 withdrawal evaluations tested for accuracy and timeliness, 1 student in a modular program had incorrect R2T4 calculations both in the Fall 2022 and Spring 2023 terms. In the Fall 2022 term, it was incorrectly determined that the student met the 49% successful completion exemption. In result, a return of Title IV funds was never made for the student in the Fall term. In the Spring 2023 term, the R2T4 was inaccurately calculated due to incorrect institutional charges and initial unsubsidized loans included in the calculation. In result, the University did not return enough Title IV Funds ($4,135 FDL, $140 Pell). These were corrected during the audit. Cause: R2T4 calculations were not reviewed for accuracy. There were errors in how the student’s R2T4’s were calculated for both terms. Regarding the Fall 2022 the missed return, PowerFAIDs is set up to automatically calculate returns when student withdraw or cease attendance, however, financial aid staff overrode the student’s completion percentage to 100% because of the misinterpretation of the modular exemption criteria, therefore a return was not calculated. Regarding the Spring 2023 inaccurate return, the financial aid office received the student's account statement after tuition and fees were adjusted and incorrectly input the adjusted charges into the calculation. Effect: Return of Title IV funds were not performed timely and an incorrect amount of unearned Title IV funds returned. Identification as repeat finding, if applicable: N/A 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 processes can operate effectively and achieve compliance. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2023-001
Inaccurate and Untimely Return of Title IV Funds (R2T4) Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2022-2023 Financial Aid Year Condition: There were two incorrect calculations of returned funds for students that withdrew during the 2022-2023 academic year. Criteria: 34 CFR 668.22 Questioned Costs: $4,275 Context: Out of 10 withdrawal evaluations tested for accuracy and timeliness, 1 student in a modular program had incorrect R2T4 calculations both in the Fall 2022 and Spring 2023 terms. In the Fall 2022 term, it was incorrectly determined that the student met the 49% successful completion exemption. In result, a return of Title IV funds was never made for the student in the Fall term. In the Spring 2023 term, the R2T4 was inaccurately calculated due to incorrect institutional charges and initial unsubsidized loans included in the calculation. In result, the University did not return enough Title IV Funds ($4,135 FDL, $140 Pell). These were corrected during the audit. Cause: R2T4 calculations were not reviewed for accuracy. There were errors in how the student’s R2T4’s were calculated for both terms. Regarding the Fall 2022 the missed return, PowerFAIDs is set up to automatically calculate returns when student withdraw or cease attendance, however, financial aid staff overrode the student’s completion percentage to 100% because of the misinterpretation of the modular exemption criteria, therefore a return was not calculated. Regarding the Spring 2023 inaccurate return, the financial aid office received the student's account statement after tuition and fees were adjusted and incorrectly input the adjusted charges into the calculation. Effect: Return of Title IV funds were not performed timely and an incorrect amount of unearned Title IV funds returned. Identification as repeat finding, if applicable: N/A 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 processes can operate effectively and achieve compliance. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2023-002
Need Analysis DEPARTMENT OF EDUCATION ALN #: 84.268 Federal Award Identification #: 2022-2023 Financial Aid Year Condition: Students were not appropriately awarded subsidized loans based on need. Criteria: 34 CFR 685.203, 34 CFR 685.301 Questioned Costs: $0 Context: Out of 60 students tested, 3 students were not awarded aid appropriately based on need analysis. One student received unsubsidized loans when they were eligible for $1,006 more in subsidized loans. One student had been offered maximum subsidized and unsubsidized loans and only accepted $1,000 in unsubsidized loans. Instead of allocating the student to subsidized loans, the University disbursed them as unsubsidized loans. One student was awarded subsidized loans in excess of need by $435 because of $1,000 of unsubsidized loans being transferred to subsidized loans late in the Spring term to award the student to 3rd-year level maximum eligibility. These students’ aid was reallocated during the audit process. Cause: This was an oversight by the University. Effect: Incorrect allocation of subsidized versus unsubsidized, which affects the amount and timing of interest the student must repay. Identification as repeat finding, if applicable: N/A Recommendation: We recommend that the University set up reports in the student information system to periodically check for over or under awarding of need-based federal aid. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.