FAC Explorer

Audit 29133

FY End
2022-08-31
Total Expended
$2.31M
Findings
10
Programs
4
Organization: The King's College and Subsidiaries (NY)
Year: 2022 Accepted: 2023-05-30
Auditor: Capincrouse LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
33903 2022-001 Significant Deficiency - N
33904 2022-002 - - N
33905 2022-001 Significant Deficiency - N
33906 2022-002 - - N
33907 2022-001 Significant Deficiency - N
610345 2022-001 Significant Deficiency - N
610346 2022-002 - - N
610347 2022-001 Significant Deficiency - N
610348 2022-002 - - N
610349 2022-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $1.76M Yes 2
84.063 Federal Pell Grant Program $402,220 Yes 2
84.425 Covid-19 Education Stabilization Fund Heerf - Student Aid Portion $126,647 - 0
84.007 Federal Supplemental Educational Opportunity Grants $27,770 Yes 1

Contacts

Name Title Type
QNMHC73LE9V1 Anna Peters Auditee
2126592746 Brent Smith, CPA Auditor
No contacts on file

Notes to SEFA

Title: RELATIONSHIP TO CONSOLIDATED FINANCIAL STATEMENTS Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of The Kings College and Subsidiaries (College) under programs of the federal government for the year ending August 31, 2022. 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 College 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 table in SEFA Note 3.
Title: SUBRECIPIENTS, NON-CASH ASSISTANCE, FEDERAL INSURANCE, LOANS, AND LOAN GUAR Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of The Kings College and Subsidiaries (College) under programs of the federal government for the year ending August 31, 2022. 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 College 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 College 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 2022-001
Inaccurate Return of Title IV (R2T4) Funds Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 and 84.007 Federal Award Identification #: 2021-2022 Financial Aid Award Year Condition: The College did not always calculate unearned Title IV funds correctly. Criteria: 34 CFR 668.22 Questioned Costs: $1,341 Context: Out of 8 students tested, 4 students did not have the correct amount of unearned Title IV funds returned when they withdrew from the College. Cause: Misapplication of the new modular withdrawal R2T4 regulations. Pell was not recalculated and returned properly prior to the R2T4 calculation for these students as they did not begin attendance in certain modular classes. Effect: Incorrect amount of unearned Title IV funds returned. The net result was an additional amount of $1,342 in Pell to be returned. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend that as part of the R2T4 calculation process, attendance in all classes for which Pell was disbursed be confirmed and Pell adjustments be made if needed, prior to completing the R2T4 calculation. We also recommend an individual with the appropriate level of experience periodically review R2T4 calculations and returns to help ensure that internal controls over the process can operate effectively and help achieve compliance. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2022-002
Federal Direct Loans and Pell Grants Reconciliations DEPARTMENT OF EDUCATION ALN #: 84.268 and 84.063 Federal Award Identification #: 2021-22 Financial Aid Year Condition: The College did not adequately complete monthly reconciliations for Federal Direct Loans and Federal Pell Grants. Criteria: 34 CFR 685.300(b)(5) Questioned Costs: $0 Context: During the audit, it was determined that the College did not properly complete the mandatory monthly reconciliations for Federal Direct Loans and Federal Pell Grants. Cause: Management oversight. Effect: The College was not in compliance with the reconciliation requirements. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend the College review the reconciliation requirements and properly complete the mandatory monthly reconciliations for Federal Direct Loans and Federal Pell Grants. The College should also review or refer to the U.S. Department of Education (ED) announcements DL-22-07 and GRANTS-23-01 which included information to assist higher education institutions with the mandatory reconciliation requirements for the Federal Direct Loan Program and Federal Pell Grants, respectively. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2022-001
Inaccurate Return of Title IV (R2T4) Funds Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 and 84.007 Federal Award Identification #: 2021-2022 Financial Aid Award Year Condition: The College did not always calculate unearned Title IV funds correctly. Criteria: 34 CFR 668.22 Questioned Costs: $1,341 Context: Out of 8 students tested, 4 students did not have the correct amount of unearned Title IV funds returned when they withdrew from the College. Cause: Misapplication of the new modular withdrawal R2T4 regulations. Pell was not recalculated and returned properly prior to the R2T4 calculation for these students as they did not begin attendance in certain modular classes. Effect: Incorrect amount of unearned Title IV funds returned. The net result was an additional amount of $1,342 in Pell to be returned. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend that as part of the R2T4 calculation process, attendance in all classes for which Pell was disbursed be confirmed and Pell adjustments be made if needed, prior to completing the R2T4 calculation. We also recommend an individual with the appropriate level of experience periodically review R2T4 calculations and returns to help ensure that internal controls over the process can operate effectively and help achieve compliance. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2022-002
Federal Direct Loans and Pell Grants Reconciliations DEPARTMENT OF EDUCATION ALN #: 84.268 and 84.063 Federal Award Identification #: 2021-22 Financial Aid Year Condition: The College did not adequately complete monthly reconciliations for Federal Direct Loans and Federal Pell Grants. Criteria: 34 CFR 685.300(b)(5) Questioned Costs: $0 Context: During the audit, it was determined that the College did not properly complete the mandatory monthly reconciliations for Federal Direct Loans and Federal Pell Grants. Cause: Management oversight. Effect: The College was not in compliance with the reconciliation requirements. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend the College review the reconciliation requirements and properly complete the mandatory monthly reconciliations for Federal Direct Loans and Federal Pell Grants. The College should also review or refer to the U.S. Department of Education (ED) announcements DL-22-07 and GRANTS-23-01 which included information to assist higher education institutions with the mandatory reconciliation requirements for the Federal Direct Loan Program and Federal Pell Grants, respectively. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2022-001
Inaccurate Return of Title IV (R2T4) Funds Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 and 84.007 Federal Award Identification #: 2021-2022 Financial Aid Award Year Condition: The College did not always calculate unearned Title IV funds correctly. Criteria: 34 CFR 668.22 Questioned Costs: $1,341 Context: Out of 8 students tested, 4 students did not have the correct amount of unearned Title IV funds returned when they withdrew from the College. Cause: Misapplication of the new modular withdrawal R2T4 regulations. Pell was not recalculated and returned properly prior to the R2T4 calculation for these students as they did not begin attendance in certain modular classes. Effect: Incorrect amount of unearned Title IV funds returned. The net result was an additional amount of $1,342 in Pell to be returned. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend that as part of the R2T4 calculation process, attendance in all classes for which Pell was disbursed be confirmed and Pell adjustments be made if needed, prior to completing the R2T4 calculation. We also recommend an individual with the appropriate level of experience periodically review R2T4 calculations and returns to help ensure that internal controls over the process can operate effectively and help achieve compliance. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2022-001
Inaccurate Return of Title IV (R2T4) Funds Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 and 84.007 Federal Award Identification #: 2021-2022 Financial Aid Award Year Condition: The College did not always calculate unearned Title IV funds correctly. Criteria: 34 CFR 668.22 Questioned Costs: $1,341 Context: Out of 8 students tested, 4 students did not have the correct amount of unearned Title IV funds returned when they withdrew from the College. Cause: Misapplication of the new modular withdrawal R2T4 regulations. Pell was not recalculated and returned properly prior to the R2T4 calculation for these students as they did not begin attendance in certain modular classes. Effect: Incorrect amount of unearned Title IV funds returned. The net result was an additional amount of $1,342 in Pell to be returned. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend that as part of the R2T4 calculation process, attendance in all classes for which Pell was disbursed be confirmed and Pell adjustments be made if needed, prior to completing the R2T4 calculation. We also recommend an individual with the appropriate level of experience periodically review R2T4 calculations and returns to help ensure that internal controls over the process can operate effectively and help achieve compliance. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2022-002
Federal Direct Loans and Pell Grants Reconciliations DEPARTMENT OF EDUCATION ALN #: 84.268 and 84.063 Federal Award Identification #: 2021-22 Financial Aid Year Condition: The College did not adequately complete monthly reconciliations for Federal Direct Loans and Federal Pell Grants. Criteria: 34 CFR 685.300(b)(5) Questioned Costs: $0 Context: During the audit, it was determined that the College did not properly complete the mandatory monthly reconciliations for Federal Direct Loans and Federal Pell Grants. Cause: Management oversight. Effect: The College was not in compliance with the reconciliation requirements. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend the College review the reconciliation requirements and properly complete the mandatory monthly reconciliations for Federal Direct Loans and Federal Pell Grants. The College should also review or refer to the U.S. Department of Education (ED) announcements DL-22-07 and GRANTS-23-01 which included information to assist higher education institutions with the mandatory reconciliation requirements for the Federal Direct Loan Program and Federal Pell Grants, respectively. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2022-001
Inaccurate Return of Title IV (R2T4) Funds Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 and 84.007 Federal Award Identification #: 2021-2022 Financial Aid Award Year Condition: The College did not always calculate unearned Title IV funds correctly. Criteria: 34 CFR 668.22 Questioned Costs: $1,341 Context: Out of 8 students tested, 4 students did not have the correct amount of unearned Title IV funds returned when they withdrew from the College. Cause: Misapplication of the new modular withdrawal R2T4 regulations. Pell was not recalculated and returned properly prior to the R2T4 calculation for these students as they did not begin attendance in certain modular classes. Effect: Incorrect amount of unearned Title IV funds returned. The net result was an additional amount of $1,342 in Pell to be returned. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend that as part of the R2T4 calculation process, attendance in all classes for which Pell was disbursed be confirmed and Pell adjustments be made if needed, prior to completing the R2T4 calculation. We also recommend an individual with the appropriate level of experience periodically review R2T4 calculations and returns to help ensure that internal controls over the process can operate effectively and help achieve compliance. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2022-002
Federal Direct Loans and Pell Grants Reconciliations DEPARTMENT OF EDUCATION ALN #: 84.268 and 84.063 Federal Award Identification #: 2021-22 Financial Aid Year Condition: The College did not adequately complete monthly reconciliations for Federal Direct Loans and Federal Pell Grants. Criteria: 34 CFR 685.300(b)(5) Questioned Costs: $0 Context: During the audit, it was determined that the College did not properly complete the mandatory monthly reconciliations for Federal Direct Loans and Federal Pell Grants. Cause: Management oversight. Effect: The College was not in compliance with the reconciliation requirements. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend the College review the reconciliation requirements and properly complete the mandatory monthly reconciliations for Federal Direct Loans and Federal Pell Grants. The College should also review or refer to the U.S. Department of Education (ED) announcements DL-22-07 and GRANTS-23-01 which included information to assist higher education institutions with the mandatory reconciliation requirements for the Federal Direct Loan Program and Federal Pell Grants, respectively. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2022-001
Inaccurate Return of Title IV (R2T4) Funds Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 and 84.007 Federal Award Identification #: 2021-2022 Financial Aid Award Year Condition: The College did not always calculate unearned Title IV funds correctly. Criteria: 34 CFR 668.22 Questioned Costs: $1,341 Context: Out of 8 students tested, 4 students did not have the correct amount of unearned Title IV funds returned when they withdrew from the College. Cause: Misapplication of the new modular withdrawal R2T4 regulations. Pell was not recalculated and returned properly prior to the R2T4 calculation for these students as they did not begin attendance in certain modular classes. Effect: Incorrect amount of unearned Title IV funds returned. The net result was an additional amount of $1,342 in Pell to be returned. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend that as part of the R2T4 calculation process, attendance in all classes for which Pell was disbursed be confirmed and Pell adjustments be made if needed, prior to completing the R2T4 calculation. We also recommend an individual with the appropriate level of experience periodically review R2T4 calculations and returns to help ensure that internal controls over the process can operate effectively and help achieve compliance. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.