FAC Explorer

Audit 28416

FY End
2022-06-30
Total Expended
$150.84M
Findings
4
Programs
34
Organization: Pace University (NY)
Year: 2022 Accepted: 2023-03-05
Auditor: Kpmg LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
37467 2022-001 - - N
37468 2022-001 - - N
613909 2022-001 - - N
613910 2022-001 - - N

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans (stafford) $62.51M Yes 1
84.268 Federal Direct Student Loans (plus) $55.30M Yes 1
84.063 Federal Pell Grant Program $11.09M Yes 0
84.038 Federal Perkins Loan Program $7.91M Yes 0
84.425 Cares Act Higher Education Emergency Relief Fund - Student $4.79M Yes 0
84.007 Federal Supplemental Educational Opportunity Grants Program $1.68M Yes 0
84.033 Federal Work-Study Program $1.04M Yes 0
93.264 Nurse Faculty Loans Program (nflp) $917,207 Yes 0
81.117 Energy Efficiency and Renewable Energy Information Dissemination, Outreach, Training and Technical Analysis/assistance $529,362 Yes 0
16.575 Crime Victim Assistance $472,500 - 0
93.364 Nursing Student Loans Program $450,561 Yes 0
84.047 Trio_upward Bound $439,531 - 0
93.178 Nursing Workforce Diversity $303,634 - 0
16.524 Legal Assistance for Victims $191,357 - 0
47.076 Education and Human Resources $182,917 Yes 0
12.902 Information Security Grants $123,615 - 0
93.859 Biomedical Research and Research Training $101,798 Yes 0
12.903 Gencyber Grants Program $89,387 - 0
59.037 Small Business Development Center $75,644 - 0
94.006 Americorps $71,842 - 0
93.226 Research on Healthcare Costs, Quality and Outcomes $70,603 Yes 0
12.300 Basic and Applied Scientific Research $59,585 Yes 0
93.396 Cancer Biology Research $59,415 Yes 0
93.137 Community Programs to Improve Minority Health Grant Program $47,113 - 0
16.588 Violence Against Women Formula Grants $40,726 - 0
12.905 Cybersecurity Core Curriculum $28,613 - 0
47.070 Computer and Information Science and Engineering $24,932 Yes 0
93.396 Nucleolin Recognition of Myc Promotorg $21,375 Yes 0
93.396 Targeting Myc Promoter G-Quadruplex for Myc Inhibition B Indenoisoquinolines $10,035 Yes 0
45.169 Promotion of the Humanities_office of Digital Humanities $7,676 - 0
47.074 Biological Sciences $5,577 Yes 0
10.351 Rural Business Development Grant $5,318 - 0
93.268 Immunization Cooperative Agreements $2,690 - 0
93.310 Trans-Nih Research Support $992 Yes 0

Contacts

Name Title Type
Y738A5L1B3V1 Joseph Capparelli Auditee
9149232402 Camille Fremont Auditor
No contacts on file

Notes to SEFA

Title: Federal Perkins, Nursing Student, Nurse Faculty Loans Programs Accounting Policies: (1) The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Pace University (the University) under programs of the federal government and is presented on the accrual basis of accounting. 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). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the University s financial statements. 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 of the University. (2) Summary of Significant 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The University has elected not to use the ten percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The University administers and accounts for all aspects of the Federal Perkins Loan Program, Nurse Faculty Loans Program, and Nursing Student Loans Program. Therefore, the University s financial statements include the programs transactions. Loans outstanding at the beginning of the year, loans made during the year, and administrative costs are included in the federal expenditures presented on the accompanying Schedule of Expenditures of Federal Awards, detailed as follows: Assistance Listing Number (ALN) 84.038 Loans outstanding at July 1, 2021 $7,911,590 and Total reported on the schedule for the year ended June 30, 2022 $7,911,590. ALN 93.264 Loans outstanding at July 1, 2021 $694,709 and Total reported on the schedule for the year ended June 30, 2022 $917,207; amounts disbursed during the year ended June 30, 2022 $222,498. ALN 93.364 Loans outstanding at July 1, 2021 $391,054 and Total reported on the schedule for the year ended June 30, 2022 $450,561; amounts disbursed during the year ended June 30, 2022 $59,507. Federal Perkins Loan Program, Nurse Faculty Loans Program, and Nursing Student Loans Program outstanding at June 30, 2022 were $4,922,859, $900,021, and $377,122 respectively.
Title: Federal Direct Student Loans Program Accounting Policies: (1) The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Pace University (the University) under programs of the federal government and is presented on the accrual basis of accounting. 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). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the University s financial statements. 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 of the University. (2) Summary of Significant 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The University has elected not to use the ten percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. For the Federal Direct Student Loans Program, the University is only responsible for the performance of certain administrative duties; therefore, the program s balance of loans outstanding and transactions are not included in the University s financial statements, and it is not practicable to determine the balances of loans outstanding to students of the University under this program at June 30, 2022. The Schedule includes the amounts loaned to students during the year ended June 30, 2022.
Title: Subrecipient Activity Accounting Policies: (1) The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Pace University (the University) under programs of the federal government and is presented on the accrual basis of accounting. 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). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the University s financial statements. 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 of the University. (2) Summary of Significant 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The University has elected not to use the ten percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The University is the subrecipient of federal funds. The federal funds are reported as expenditures and listed as federal pass-through funds on the Schedule of Expenditures of Federal Awards.

Finding Details

Finding 2022-001
2022-001 Noncompliance: Special Tests and Provisions ? Disbursements to or on Behalf of Students Federal Program: Student Financial Assistance Cluster: Federal Direct Loan Program (ALN 84.268) Federal Agency: U.S. Department of Education Federal Award Year: July 1, 2021 to June 30, 2022 Statistically Valid Sample: No, and it was not intended to be Criteria: The institution must notify the student, or parent, in writing of (1) the date and amount of the disbursement; (2) the student?s right, or parent?s right, to cancel all or a portion of that loan or loan disbursement and have the loan proceeds returned to the holder of that loan or the TEACH Grant payments returned to ED; and (3) the procedure and time by which the student or parent must notify the institution that he or she wishes to cancel the loan, TEACH Grant, or TEACH Grant disbursement. The notification requirement for loan funds applies only if the funds are disbursed by EFT payment or master check (34 CFR 668.165). Institutions that implement an affirmative confirmation process (as described in 34 CFR 668.165 (a)(6)(i)) must make this notification to the student or parent no earlier than 30 days before, and no later than 30 days after, crediting the student?s account at the institution with Direct Loan or TEACH Grants. Institutions that do not implement an affirmative confirmation process must notify a student no earlier than 30 days before, but no later than seven days after, crediting the student?s account and must give the student 30 days (instead of 14) to cancel all or part of the loan. Condition and Context: We tested a sample of 40 disbursements to students who received funds from the Federal Direct Loan Program in fiscal year 2022. For three samples selected, the University did not notify the student or parent as required by 34 CFR 668.165. The notifications for these three samples were sent within 11-18 days after the required 30-day timeframe. Cause and Effect/Potential Effect The notification in accordance with 34 CFR 668.165 provided the borrower with the date and amount of the disbursement, the borrower?s right to cancel the loan, and date by which the borrower must notify the University if they want to cancel the loan. As a result of competing priorities during the Fall 2021 semester, the established process of internal controls was not followed, resulting in the delayed notice to students. The University became aware of the issue during December 2021 and corrected the matter before the Spring 2022 semester. Questioned Costs There are no known questioned costs related to this finding. Repeat Finding No. Recommendation We recommend that management review its current policies and procedures to notify students and parents regarding loan disbursement to ensure timely notification of disbursements in accordance with the compliance requirement. Views of Responsible Officials The Financial Aid directors have been on a path to automate a number of processes, including the Notification of Federal Loan Disbursement. To assist in streamlining our processes and improving the overall student experience, the University has engaged the services of an outside consultant, CampusWorks, on a two-year contract, which commenced on October 18, 2022, to work with relevant Pace personnel on Enterprise Systems modernization. Although this delay in notification is for an isolated time period, the Notification of Disbursement process has been automated as of February 23, 2023, and notifications will be released systematically on a regular schedule, in line with federal guidelines.
Finding 2022-001
2022-001 Noncompliance: Special Tests and Provisions ? Disbursements to or on Behalf of Students Federal Program: Student Financial Assistance Cluster: Federal Direct Loan Program (ALN 84.268) Federal Agency: U.S. Department of Education Federal Award Year: July 1, 2021 to June 30, 2022 Statistically Valid Sample: No, and it was not intended to be Criteria: The institution must notify the student, or parent, in writing of (1) the date and amount of the disbursement; (2) the student?s right, or parent?s right, to cancel all or a portion of that loan or loan disbursement and have the loan proceeds returned to the holder of that loan or the TEACH Grant payments returned to ED; and (3) the procedure and time by which the student or parent must notify the institution that he or she wishes to cancel the loan, TEACH Grant, or TEACH Grant disbursement. The notification requirement for loan funds applies only if the funds are disbursed by EFT payment or master check (34 CFR 668.165). Institutions that implement an affirmative confirmation process (as described in 34 CFR 668.165 (a)(6)(i)) must make this notification to the student or parent no earlier than 30 days before, and no later than 30 days after, crediting the student?s account at the institution with Direct Loan or TEACH Grants. Institutions that do not implement an affirmative confirmation process must notify a student no earlier than 30 days before, but no later than seven days after, crediting the student?s account and must give the student 30 days (instead of 14) to cancel all or part of the loan. Condition and Context: We tested a sample of 40 disbursements to students who received funds from the Federal Direct Loan Program in fiscal year 2022. For three samples selected, the University did not notify the student or parent as required by 34 CFR 668.165. The notifications for these three samples were sent within 11-18 days after the required 30-day timeframe. Cause and Effect/Potential Effect The notification in accordance with 34 CFR 668.165 provided the borrower with the date and amount of the disbursement, the borrower?s right to cancel the loan, and date by which the borrower must notify the University if they want to cancel the loan. As a result of competing priorities during the Fall 2021 semester, the established process of internal controls was not followed, resulting in the delayed notice to students. The University became aware of the issue during December 2021 and corrected the matter before the Spring 2022 semester. Questioned Costs There are no known questioned costs related to this finding. Repeat Finding No. Recommendation We recommend that management review its current policies and procedures to notify students and parents regarding loan disbursement to ensure timely notification of disbursements in accordance with the compliance requirement. Views of Responsible Officials The Financial Aid directors have been on a path to automate a number of processes, including the Notification of Federal Loan Disbursement. To assist in streamlining our processes and improving the overall student experience, the University has engaged the services of an outside consultant, CampusWorks, on a two-year contract, which commenced on October 18, 2022, to work with relevant Pace personnel on Enterprise Systems modernization. Although this delay in notification is for an isolated time period, the Notification of Disbursement process has been automated as of February 23, 2023, and notifications will be released systematically on a regular schedule, in line with federal guidelines.
Finding 2022-001
2022-001 Noncompliance: Special Tests and Provisions ? Disbursements to or on Behalf of Students Federal Program: Student Financial Assistance Cluster: Federal Direct Loan Program (ALN 84.268) Federal Agency: U.S. Department of Education Federal Award Year: July 1, 2021 to June 30, 2022 Statistically Valid Sample: No, and it was not intended to be Criteria: The institution must notify the student, or parent, in writing of (1) the date and amount of the disbursement; (2) the student?s right, or parent?s right, to cancel all or a portion of that loan or loan disbursement and have the loan proceeds returned to the holder of that loan or the TEACH Grant payments returned to ED; and (3) the procedure and time by which the student or parent must notify the institution that he or she wishes to cancel the loan, TEACH Grant, or TEACH Grant disbursement. The notification requirement for loan funds applies only if the funds are disbursed by EFT payment or master check (34 CFR 668.165). Institutions that implement an affirmative confirmation process (as described in 34 CFR 668.165 (a)(6)(i)) must make this notification to the student or parent no earlier than 30 days before, and no later than 30 days after, crediting the student?s account at the institution with Direct Loan or TEACH Grants. Institutions that do not implement an affirmative confirmation process must notify a student no earlier than 30 days before, but no later than seven days after, crediting the student?s account and must give the student 30 days (instead of 14) to cancel all or part of the loan. Condition and Context: We tested a sample of 40 disbursements to students who received funds from the Federal Direct Loan Program in fiscal year 2022. For three samples selected, the University did not notify the student or parent as required by 34 CFR 668.165. The notifications for these three samples were sent within 11-18 days after the required 30-day timeframe. Cause and Effect/Potential Effect The notification in accordance with 34 CFR 668.165 provided the borrower with the date and amount of the disbursement, the borrower?s right to cancel the loan, and date by which the borrower must notify the University if they want to cancel the loan. As a result of competing priorities during the Fall 2021 semester, the established process of internal controls was not followed, resulting in the delayed notice to students. The University became aware of the issue during December 2021 and corrected the matter before the Spring 2022 semester. Questioned Costs There are no known questioned costs related to this finding. Repeat Finding No. Recommendation We recommend that management review its current policies and procedures to notify students and parents regarding loan disbursement to ensure timely notification of disbursements in accordance with the compliance requirement. Views of Responsible Officials The Financial Aid directors have been on a path to automate a number of processes, including the Notification of Federal Loan Disbursement. To assist in streamlining our processes and improving the overall student experience, the University has engaged the services of an outside consultant, CampusWorks, on a two-year contract, which commenced on October 18, 2022, to work with relevant Pace personnel on Enterprise Systems modernization. Although this delay in notification is for an isolated time period, the Notification of Disbursement process has been automated as of February 23, 2023, and notifications will be released systematically on a regular schedule, in line with federal guidelines.
Finding 2022-001
2022-001 Noncompliance: Special Tests and Provisions ? Disbursements to or on Behalf of Students Federal Program: Student Financial Assistance Cluster: Federal Direct Loan Program (ALN 84.268) Federal Agency: U.S. Department of Education Federal Award Year: July 1, 2021 to June 30, 2022 Statistically Valid Sample: No, and it was not intended to be Criteria: The institution must notify the student, or parent, in writing of (1) the date and amount of the disbursement; (2) the student?s right, or parent?s right, to cancel all or a portion of that loan or loan disbursement and have the loan proceeds returned to the holder of that loan or the TEACH Grant payments returned to ED; and (3) the procedure and time by which the student or parent must notify the institution that he or she wishes to cancel the loan, TEACH Grant, or TEACH Grant disbursement. The notification requirement for loan funds applies only if the funds are disbursed by EFT payment or master check (34 CFR 668.165). Institutions that implement an affirmative confirmation process (as described in 34 CFR 668.165 (a)(6)(i)) must make this notification to the student or parent no earlier than 30 days before, and no later than 30 days after, crediting the student?s account at the institution with Direct Loan or TEACH Grants. Institutions that do not implement an affirmative confirmation process must notify a student no earlier than 30 days before, but no later than seven days after, crediting the student?s account and must give the student 30 days (instead of 14) to cancel all or part of the loan. Condition and Context: We tested a sample of 40 disbursements to students who received funds from the Federal Direct Loan Program in fiscal year 2022. For three samples selected, the University did not notify the student or parent as required by 34 CFR 668.165. The notifications for these three samples were sent within 11-18 days after the required 30-day timeframe. Cause and Effect/Potential Effect The notification in accordance with 34 CFR 668.165 provided the borrower with the date and amount of the disbursement, the borrower?s right to cancel the loan, and date by which the borrower must notify the University if they want to cancel the loan. As a result of competing priorities during the Fall 2021 semester, the established process of internal controls was not followed, resulting in the delayed notice to students. The University became aware of the issue during December 2021 and corrected the matter before the Spring 2022 semester. Questioned Costs There are no known questioned costs related to this finding. Repeat Finding No. Recommendation We recommend that management review its current policies and procedures to notify students and parents regarding loan disbursement to ensure timely notification of disbursements in accordance with the compliance requirement. Views of Responsible Officials The Financial Aid directors have been on a path to automate a number of processes, including the Notification of Federal Loan Disbursement. To assist in streamlining our processes and improving the overall student experience, the University has engaged the services of an outside consultant, CampusWorks, on a two-year contract, which commenced on October 18, 2022, to work with relevant Pace personnel on Enterprise Systems modernization. Although this delay in notification is for an isolated time period, the Notification of Disbursement process has been automated as of February 23, 2023, and notifications will be released systematically on a regular schedule, in line with federal guidelines.