Audit 292214

FY End

2023-05-31

Total Expended

$7.60M

Findings

4

Programs

6

Organization: Judson Univeristy, A Baptist Institution (IL)

Year: 2023 Accepted: 2024-02-26

Auditor: Capincrouse LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
370536	2023-001	-	-	N
370537	2023-001	-	-	N
946978	2023-001	-	-	N
946979	2023-001	-	-	N

ALN	Program	Spent	Major	Findings
84.268	Federal Direct Student Loans	$5.23M	Yes	1
84.063	Federal Pell Grant Program	$1.61M	Yes	1
84.038	Federal Perkins Loan Program	$572,465	Yes	0
84.033	Federal Work-Study Program	$86,025	Yes	0
84.007	Federal Supplemental Educational Opportunity Grants	$85,430	Yes	0
84.425	Covid-19 Education Stabilization Fund Heerf - Institutional Portion	$16,505	-	0

Contacts

Name	Title	Type
WTC3ECE4A764	Vincent Peluso	Auditee
8476952500	Chris Dukate, 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 Judson University, A Baptist Institution (University) under programs of the federal government for the year ending 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 Judson University, A Baptist Institution (University) under programs of the federal government for the year ending 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 Judson University, A Baptist Institution (University) under programs of the federal government for the year ending 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: ZONE ALTERNATIVE COMPLIANCE Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Judson University, A Baptist Institution (University) under programs of the federal government for the year ending 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 is operating under the Provisional Certification Alternative for failure to meet the Department of Education’s standards of financial responsibility. The University must comply with all the requirements specified for the Provisional Certification Alternative including the Zone Alternative. As part of the audit procedures, the University’s compliance with the Zone Alternative including their administration of the heightened cash monitoring payment method, disbursing aid and paying out credit balances before requesting reimbursement and notification requirements was tested. No non-compliance with the requirements was noted.

Finding Details

Finding 2023-001

Untimely Returns of Title IV Funds (R2T4) DEPARTMENT OF EDUCATION ALN #: ALN #: 84.063 Pell Grants and 84.268 Federal Direct Loans Federal Award Identification #: 2022-2023 Financial Aid Year Condition: When students withdrew unofficially, the University did not always return unearned Title IV aid timely. Criteria: 34 CFR 668.22 Questioned Costs: $0 Context: Out of 39 students, 3 non-traditional students in modular programs who withdrew during the audit period tested had funds totaling $7,562 returned late ranging from 6 - 18 days late. The University reviewed all 39 students for timely return. The amounts returned by the University were accurate. Cause: There was a lack of timely communication from faculty to the financial aid department that students ceased attendance therefore the returns were not able to be processed with the required timeframe. As an attendance taking institution, faculty are to report to the appropriate departments that students have been absent for more than 14 days so the administrative withdrawal process can begin as necessary. The financial aid department is processing the returns timely once they have received notification. Effect: Return of Title IV funds were not performed timely. Identification as repeat finding, if applicable: N/A Recommendation: We recommend the University improve policies and procedures to require timely communication to the financial aid and business affairs departments for them to process returns timely. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Finding 2023-001

Untimely Returns of Title IV Funds (R2T4) DEPARTMENT OF EDUCATION ALN #: ALN #: 84.063 Pell Grants and 84.268 Federal Direct Loans Federal Award Identification #: 2022-2023 Financial Aid Year Condition: When students withdrew unofficially, the University did not always return unearned Title IV aid timely. Criteria: 34 CFR 668.22 Questioned Costs: $0 Context: Out of 39 students, 3 non-traditional students in modular programs who withdrew during the audit period tested had funds totaling $7,562 returned late ranging from 6 - 18 days late. The University reviewed all 39 students for timely return. The amounts returned by the University were accurate. Cause: There was a lack of timely communication from faculty to the financial aid department that students ceased attendance therefore the returns were not able to be processed with the required timeframe. As an attendance taking institution, faculty are to report to the appropriate departments that students have been absent for more than 14 days so the administrative withdrawal process can begin as necessary. The financial aid department is processing the returns timely once they have received notification. Effect: Return of Title IV funds were not performed timely. Identification as repeat finding, if applicable: N/A Recommendation: We recommend the University improve policies and procedures to require timely communication to the financial aid and business affairs departments for them to process returns timely. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Finding 2023-001

Untimely Returns of Title IV Funds (R2T4) DEPARTMENT OF EDUCATION ALN #: ALN #: 84.063 Pell Grants and 84.268 Federal Direct Loans Federal Award Identification #: 2022-2023 Financial Aid Year Condition: When students withdrew unofficially, the University did not always return unearned Title IV aid timely. Criteria: 34 CFR 668.22 Questioned Costs: $0 Context: Out of 39 students, 3 non-traditional students in modular programs who withdrew during the audit period tested had funds totaling $7,562 returned late ranging from 6 - 18 days late. The University reviewed all 39 students for timely return. The amounts returned by the University were accurate. Cause: There was a lack of timely communication from faculty to the financial aid department that students ceased attendance therefore the returns were not able to be processed with the required timeframe. As an attendance taking institution, faculty are to report to the appropriate departments that students have been absent for more than 14 days so the administrative withdrawal process can begin as necessary. The financial aid department is processing the returns timely once they have received notification. Effect: Return of Title IV funds were not performed timely. Identification as repeat finding, if applicable: N/A Recommendation: We recommend the University improve policies and procedures to require timely communication to the financial aid and business affairs departments for them to process returns timely. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Finding 2023-001

Untimely Returns of Title IV Funds (R2T4) DEPARTMENT OF EDUCATION ALN #: ALN #: 84.063 Pell Grants and 84.268 Federal Direct Loans Federal Award Identification #: 2022-2023 Financial Aid Year Condition: When students withdrew unofficially, the University did not always return unearned Title IV aid timely. Criteria: 34 CFR 668.22 Questioned Costs: $0 Context: Out of 39 students, 3 non-traditional students in modular programs who withdrew during the audit period tested had funds totaling $7,562 returned late ranging from 6 - 18 days late. The University reviewed all 39 students for timely return. The amounts returned by the University were accurate. Cause: There was a lack of timely communication from faculty to the financial aid department that students ceased attendance therefore the returns were not able to be processed with the required timeframe. As an attendance taking institution, faculty are to report to the appropriate departments that students have been absent for more than 14 days so the administrative withdrawal process can begin as necessary. The financial aid department is processing the returns timely once they have received notification. Effect: Return of Title IV funds were not performed timely. Identification as repeat finding, if applicable: N/A Recommendation: We recommend the University improve policies and procedures to require timely communication to the financial aid and business affairs departments for them to process returns timely. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.