FAC Explorer

Audit 28500

FY End
2022-06-30
Total Expended
$37.70M
Findings
2
Programs
9
Organization: Edp University of Puerto Rico, Inc. (PR)
Year: 2022 Accepted: 2023-03-30
Auditor: Baker Tilly Puerto Rico CPAS Psc

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
33381 2022-001 - Yes N
609823 2022-001 - Yes N

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $15.01M Yes 0
84.063 Federal Pell Grant Program $9.62M Yes 1
84.425 Education Stabilization Fund $1.02M Yes 0
93.178 Nursing Workforce Diversity $357,659 - 0
84.033 Federal Work-Study Program $272,495 Yes 0
84.007 Federal Supplemental Educational Opportunity Grants $243,037 Yes 0
84.031 Higher Education_institutional Aid $210,320 - 0
84.002 Adult Education - Basic Grants to States $93,184 - 0
84.335 Child Care Access Means Parents in School $23,808 - 0

Contacts

Name Title Type
DGFDGMAFL2S5 Marie Luz Pastrana Auditee
7877653560 Jose A Rodriguez Auditor
No contacts on file

Notes to SEFA

Accounting Policies: . Basis of presentationThe accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of EDP University of Puerto Rico, Inc. under programs of the federal government for the year ended June 30, 2022. The information in this 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 EDP University of Puerto Rico, Inc., it is not intended to and does not present the financial position, changes in net assets or cash flows of EDP University of Puerto Rico, Inc. 2. Summary of significant accounting policiesExpenditures 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.3. Federal Loan Program The value of loans processed by the University for eligible students under federal loan program for the year ended June 30, 2022 amounted to $15,013,017 as presented in the schedule of federal expenditures. 4. Indirect costsThe University does not have a federally negotiated indirect cost rate applicable to the programs. The University does not use the 10 percent de minimis indirect cost rate provided for in the Uniform Guidance.5. Assistance Listing Number (ALN)The ALN numbers included in this schedule are determined based on the program name, review of grant contract information and the U.S. Office of Management and Budgets Federal Assistance Listing.6. Student financial aid Program clusterFor the year ended June 30, 2022 the University received and disbursed $10,135,768 in Title IV Funds of Higher Education Act of 1965 (SFA Cluster Programs); and $15,013,017 in Federal Direct Students Loans in which the University acts as agent for the recipient. The Uniform Guidance defines a cluster of programs as a grouping of closely related programs that share common compliance requirements. According to this definition, the Student Financial Assistance programs were deemed to be a cluster of programs and were tested accordingly. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-001
FINDING NO. 2022-001 Federal Program: CFDA 84.063 Federal Pell Grant Program Category: Compliance ? Special tests and provision ? Return of Title IV funds. Criteria: Per 34 CFR Section 668.173(b), returns of Title IV funds are required to be deposited or transferred into the SFA account or electronic fund transfers initiated to U.S. Department of Education as soon as possible, but no later than 45 days after the date the institution determines that the student withdrew. Title 2 U.S. Code of Federal Regulations Part 200 (2 CFR part 200), Uniform Administrative Requirements, Cost Principles, and Audit Requirements, section 200.303 also states that non-federal entities must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: During our test work over the return of Title IV funds, we noted that in eight cases (8) instances out of a sample of 25 students selected, the Institution returned the funds after the allowable 45 days. Questioned Costs: No questioned costs were identified. Perspective Information: We selected twenty-five (25) students, from the population of withdrawn students during the fiscal year 2021 - 2022. Cause and effect: The return calculation in those cases was performed at the same time that the institution was in the process of reviewing the regulations outlined in the US Department of Education federal notice with an effective date of July 2021 and the usual training made by the institution in these regulatory matters had not yet been carried out. As a result, the federal funds in those cases were not returned timely. Recommendation: The Institution should continue reinforcing the Return of Title IV procedures and establish close coordination between the Student Financial Aid Office and the Register office, in order to improve compliance with federal regulations and avoid a similar situation in the future. Views of Responsible Officials and Planned Corrective Actions: See Institution?s corrective action plan.
Finding 2022-001
FINDING NO. 2022-001 Federal Program: CFDA 84.063 Federal Pell Grant Program Category: Compliance ? Special tests and provision ? Return of Title IV funds. Criteria: Per 34 CFR Section 668.173(b), returns of Title IV funds are required to be deposited or transferred into the SFA account or electronic fund transfers initiated to U.S. Department of Education as soon as possible, but no later than 45 days after the date the institution determines that the student withdrew. Title 2 U.S. Code of Federal Regulations Part 200 (2 CFR part 200), Uniform Administrative Requirements, Cost Principles, and Audit Requirements, section 200.303 also states that non-federal entities must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: During our test work over the return of Title IV funds, we noted that in eight cases (8) instances out of a sample of 25 students selected, the Institution returned the funds after the allowable 45 days. Questioned Costs: No questioned costs were identified. Perspective Information: We selected twenty-five (25) students, from the population of withdrawn students during the fiscal year 2021 - 2022. Cause and effect: The return calculation in those cases was performed at the same time that the institution was in the process of reviewing the regulations outlined in the US Department of Education federal notice with an effective date of July 2021 and the usual training made by the institution in these regulatory matters had not yet been carried out. As a result, the federal funds in those cases were not returned timely. Recommendation: The Institution should continue reinforcing the Return of Title IV procedures and establish close coordination between the Student Financial Aid Office and the Register office, in order to improve compliance with federal regulations and avoid a similar situation in the future. Views of Responsible Officials and Planned Corrective Actions: See Institution?s corrective action plan.