FAC Explorer

Audit 292492

FY End
2023-06-30
Total Expended
$4.01M
Findings
14
Programs
5
Organization: The King's University (TX)
Year: 2023 Accepted: 2024-02-27
Auditor: Capincrouse LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
370805 2023-002 Significant Deficiency Yes N
370806 2023-002 Significant Deficiency Yes N
370807 2023-003 Significant Deficiency - E
370808 2023-004 Significant Deficiency - N
370809 2023-004 Significant Deficiency - N
370810 2023-004 Significant Deficiency - N
370811 2023-004 Significant Deficiency - N
947247 2023-002 Significant Deficiency Yes N
947248 2023-002 Significant Deficiency Yes N
947249 2023-003 Significant Deficiency - E
947250 2023-004 Significant Deficiency - N
947251 2023-004 Significant Deficiency - N
947252 2023-004 Significant Deficiency - N
947253 2023-004 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $3.21M Yes 2
84.063 Federal Pell Grant Program $523,464 Yes 3
84.425 Covid-19 Education Stabilization Fund Heerf - Institutional Portion $205,345 - 0
84.033 Federal Work-Study Program $38,000 Yes 1
84.007 Federal Supplemental Educational Opportunity Grants $23,614 Yes 1

Contacts

Name Title Type
EE9JC22MVAB4 Dr. Irini Fambro Auditee
8177221700 Robert J. Faulk, CPA Auditor
No contacts on file

Notes to SEFA

Title: RELATIONSHIP TO COMBINED AND CONSOLIDATED FINANCIAL STATEMENTS Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of The King’s University (University) under programs of the federal government for the year ending June 30, 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 combined and 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 The King’s University (University) under programs of the federal government for the year ending June 30, 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 combined and 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.

Finding Details

Finding 2023-002
Inaccurate Return of Title IV Funds Calculations Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268 and 84.063 Federal Award Identification #: 2022-2023 Financial Aid Year Condition: There were 2 incorrect calculations of returned funds for students that withdrew during the term. Criteria: 34 CFR 668.22 Questioned Costs: $0 Context: Out of 7 students, 2 students who withdrew during the audit period tested had funds returned incorrectly. One student was a modular student and had met an exemption, and the other student had an incorrect calculation. Additionally, 1 student had funds returned 87 days late. Additionally, one student had funds returned on the student account but the returns were not reflected in Common Origination and Disbursement (COD). Cause: These were oversights by the University in conjunction with the third-party administrator who assists in processing return calculations. Effect: The incorrect amount of Title IV funds was returned. Identification as repeat finding, if applicable: Yes, 2022-001 Recommendation: We recommend the University and the third-party processor work together to determine how to best complete return calculations. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2023-002
Inaccurate Return of Title IV Funds Calculations Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268 and 84.063 Federal Award Identification #: 2022-2023 Financial Aid Year Condition: There were 2 incorrect calculations of returned funds for students that withdrew during the term. Criteria: 34 CFR 668.22 Questioned Costs: $0 Context: Out of 7 students, 2 students who withdrew during the audit period tested had funds returned incorrectly. One student was a modular student and had met an exemption, and the other student had an incorrect calculation. Additionally, 1 student had funds returned 87 days late. Additionally, one student had funds returned on the student account but the returns were not reflected in Common Origination and Disbursement (COD). Cause: These were oversights by the University in conjunction with the third-party administrator who assists in processing return calculations. Effect: The incorrect amount of Title IV funds was returned. Identification as repeat finding, if applicable: Yes, 2022-001 Recommendation: We recommend the University and the third-party processor work together to determine how to best complete return calculations. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2023-003
Incorrect Pell Calculations Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.063 Federal Award Identification #: 2022-2023 Financial Aid Year Condition: 2 students out of 31 were not properly awarded Pell based on enrollment status. Criteria: 34 CFR 690.63(b) Questioned Costs: $1,187 Context: One student was inadvertently awarded and paid Pell when they were officially less than half time for summer 2023 term under year round Pell, resulting in an over award of $1,187. This was corrected during the audit. Additionally, one student added a class and was not paid their Pell eligibility of $861 for that class. This student was also corrected during the audit. Cause: These were oversights. Effect: There was an incorrect amount of Pell paid to these two students. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend a process be used to adjust Pell to be paid in alignment with enrollment status. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2023-004
Gramm-Leach-Bliley Act (GLBA) Compliance Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063, 84.007, and 84.033 - Student Financial Assistance Cluster Federal Award Identification #: 2022-2023 Financial Aid Year Condition: The University did not sufficiently comply with all the requirements of GLBA. Criteria: 16 CFR 314.3, 16 CFR 314.4 Questioned Costs: $0 Context: The University has not: • fully updated its written information security program in compliance with the revised regulations and with organizational practices • sufficiently documented its security risk assessment and safeguards • implemented multi-factor authentication on all systems containing personally identifiable information (PII) • implemented continuous monitoring, such as penetration testing and vulnerability scanning • implemented sufficient vendor management policies and reviews • provided a written, annual report to the board. Cause: The University shares information technology resources with another organization and is in the process of determining which pieces are fully addressed with that organization and which pieces the University will need to address and document compliance with the requirements of GLBA. Effect: The University has not adequately addressed the requirements of GLBA, which may lead to unintended exposure of student information to security risks. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend the University allocate sufficient resources to address all requirements of GLBA. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2023-004
Gramm-Leach-Bliley Act (GLBA) Compliance Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063, 84.007, and 84.033 - Student Financial Assistance Cluster Federal Award Identification #: 2022-2023 Financial Aid Year Condition: The University did not sufficiently comply with all the requirements of GLBA. Criteria: 16 CFR 314.3, 16 CFR 314.4 Questioned Costs: $0 Context: The University has not: • fully updated its written information security program in compliance with the revised regulations and with organizational practices • sufficiently documented its security risk assessment and safeguards • implemented multi-factor authentication on all systems containing personally identifiable information (PII) • implemented continuous monitoring, such as penetration testing and vulnerability scanning • implemented sufficient vendor management policies and reviews • provided a written, annual report to the board. Cause: The University shares information technology resources with another organization and is in the process of determining which pieces are fully addressed with that organization and which pieces the University will need to address and document compliance with the requirements of GLBA. Effect: The University has not adequately addressed the requirements of GLBA, which may lead to unintended exposure of student information to security risks. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend the University allocate sufficient resources to address all requirements of GLBA. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2023-004
Gramm-Leach-Bliley Act (GLBA) Compliance Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063, 84.007, and 84.033 - Student Financial Assistance Cluster Federal Award Identification #: 2022-2023 Financial Aid Year Condition: The University did not sufficiently comply with all the requirements of GLBA. Criteria: 16 CFR 314.3, 16 CFR 314.4 Questioned Costs: $0 Context: The University has not: • fully updated its written information security program in compliance with the revised regulations and with organizational practices • sufficiently documented its security risk assessment and safeguards • implemented multi-factor authentication on all systems containing personally identifiable information (PII) • implemented continuous monitoring, such as penetration testing and vulnerability scanning • implemented sufficient vendor management policies and reviews • provided a written, annual report to the board. Cause: The University shares information technology resources with another organization and is in the process of determining which pieces are fully addressed with that organization and which pieces the University will need to address and document compliance with the requirements of GLBA. Effect: The University has not adequately addressed the requirements of GLBA, which may lead to unintended exposure of student information to security risks. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend the University allocate sufficient resources to address all requirements of GLBA. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2023-004
Gramm-Leach-Bliley Act (GLBA) Compliance Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063, 84.007, and 84.033 - Student Financial Assistance Cluster Federal Award Identification #: 2022-2023 Financial Aid Year Condition: The University did not sufficiently comply with all the requirements of GLBA. Criteria: 16 CFR 314.3, 16 CFR 314.4 Questioned Costs: $0 Context: The University has not: • fully updated its written information security program in compliance with the revised regulations and with organizational practices • sufficiently documented its security risk assessment and safeguards • implemented multi-factor authentication on all systems containing personally identifiable information (PII) • implemented continuous monitoring, such as penetration testing and vulnerability scanning • implemented sufficient vendor management policies and reviews • provided a written, annual report to the board. Cause: The University shares information technology resources with another organization and is in the process of determining which pieces are fully addressed with that organization and which pieces the University will need to address and document compliance with the requirements of GLBA. Effect: The University has not adequately addressed the requirements of GLBA, which may lead to unintended exposure of student information to security risks. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend the University allocate sufficient resources to address all requirements of GLBA. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2023-002
Inaccurate Return of Title IV Funds Calculations Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268 and 84.063 Federal Award Identification #: 2022-2023 Financial Aid Year Condition: There were 2 incorrect calculations of returned funds for students that withdrew during the term. Criteria: 34 CFR 668.22 Questioned Costs: $0 Context: Out of 7 students, 2 students who withdrew during the audit period tested had funds returned incorrectly. One student was a modular student and had met an exemption, and the other student had an incorrect calculation. Additionally, 1 student had funds returned 87 days late. Additionally, one student had funds returned on the student account but the returns were not reflected in Common Origination and Disbursement (COD). Cause: These were oversights by the University in conjunction with the third-party administrator who assists in processing return calculations. Effect: The incorrect amount of Title IV funds was returned. Identification as repeat finding, if applicable: Yes, 2022-001 Recommendation: We recommend the University and the third-party processor work together to determine how to best complete return calculations. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2023-002
Inaccurate Return of Title IV Funds Calculations Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268 and 84.063 Federal Award Identification #: 2022-2023 Financial Aid Year Condition: There were 2 incorrect calculations of returned funds for students that withdrew during the term. Criteria: 34 CFR 668.22 Questioned Costs: $0 Context: Out of 7 students, 2 students who withdrew during the audit period tested had funds returned incorrectly. One student was a modular student and had met an exemption, and the other student had an incorrect calculation. Additionally, 1 student had funds returned 87 days late. Additionally, one student had funds returned on the student account but the returns were not reflected in Common Origination and Disbursement (COD). Cause: These were oversights by the University in conjunction with the third-party administrator who assists in processing return calculations. Effect: The incorrect amount of Title IV funds was returned. Identification as repeat finding, if applicable: Yes, 2022-001 Recommendation: We recommend the University and the third-party processor work together to determine how to best complete return calculations. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2023-003
Incorrect Pell Calculations Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.063 Federal Award Identification #: 2022-2023 Financial Aid Year Condition: 2 students out of 31 were not properly awarded Pell based on enrollment status. Criteria: 34 CFR 690.63(b) Questioned Costs: $1,187 Context: One student was inadvertently awarded and paid Pell when they were officially less than half time for summer 2023 term under year round Pell, resulting in an over award of $1,187. This was corrected during the audit. Additionally, one student added a class and was not paid their Pell eligibility of $861 for that class. This student was also corrected during the audit. Cause: These were oversights. Effect: There was an incorrect amount of Pell paid to these two students. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend a process be used to adjust Pell to be paid in alignment with enrollment status. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2023-004
Gramm-Leach-Bliley Act (GLBA) Compliance Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063, 84.007, and 84.033 - Student Financial Assistance Cluster Federal Award Identification #: 2022-2023 Financial Aid Year Condition: The University did not sufficiently comply with all the requirements of GLBA. Criteria: 16 CFR 314.3, 16 CFR 314.4 Questioned Costs: $0 Context: The University has not: • fully updated its written information security program in compliance with the revised regulations and with organizational practices • sufficiently documented its security risk assessment and safeguards • implemented multi-factor authentication on all systems containing personally identifiable information (PII) • implemented continuous monitoring, such as penetration testing and vulnerability scanning • implemented sufficient vendor management policies and reviews • provided a written, annual report to the board. Cause: The University shares information technology resources with another organization and is in the process of determining which pieces are fully addressed with that organization and which pieces the University will need to address and document compliance with the requirements of GLBA. Effect: The University has not adequately addressed the requirements of GLBA, which may lead to unintended exposure of student information to security risks. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend the University allocate sufficient resources to address all requirements of GLBA. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2023-004
Gramm-Leach-Bliley Act (GLBA) Compliance Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063, 84.007, and 84.033 - Student Financial Assistance Cluster Federal Award Identification #: 2022-2023 Financial Aid Year Condition: The University did not sufficiently comply with all the requirements of GLBA. Criteria: 16 CFR 314.3, 16 CFR 314.4 Questioned Costs: $0 Context: The University has not: • fully updated its written information security program in compliance with the revised regulations and with organizational practices • sufficiently documented its security risk assessment and safeguards • implemented multi-factor authentication on all systems containing personally identifiable information (PII) • implemented continuous monitoring, such as penetration testing and vulnerability scanning • implemented sufficient vendor management policies and reviews • provided a written, annual report to the board. Cause: The University shares information technology resources with another organization and is in the process of determining which pieces are fully addressed with that organization and which pieces the University will need to address and document compliance with the requirements of GLBA. Effect: The University has not adequately addressed the requirements of GLBA, which may lead to unintended exposure of student information to security risks. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend the University allocate sufficient resources to address all requirements of GLBA. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2023-004
Gramm-Leach-Bliley Act (GLBA) Compliance Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063, 84.007, and 84.033 - Student Financial Assistance Cluster Federal Award Identification #: 2022-2023 Financial Aid Year Condition: The University did not sufficiently comply with all the requirements of GLBA. Criteria: 16 CFR 314.3, 16 CFR 314.4 Questioned Costs: $0 Context: The University has not: • fully updated its written information security program in compliance with the revised regulations and with organizational practices • sufficiently documented its security risk assessment and safeguards • implemented multi-factor authentication on all systems containing personally identifiable information (PII) • implemented continuous monitoring, such as penetration testing and vulnerability scanning • implemented sufficient vendor management policies and reviews • provided a written, annual report to the board. Cause: The University shares information technology resources with another organization and is in the process of determining which pieces are fully addressed with that organization and which pieces the University will need to address and document compliance with the requirements of GLBA. Effect: The University has not adequately addressed the requirements of GLBA, which may lead to unintended exposure of student information to security risks. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend the University allocate sufficient resources to address all requirements of GLBA. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2023-004
Gramm-Leach-Bliley Act (GLBA) Compliance Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063, 84.007, and 84.033 - Student Financial Assistance Cluster Federal Award Identification #: 2022-2023 Financial Aid Year Condition: The University did not sufficiently comply with all the requirements of GLBA. Criteria: 16 CFR 314.3, 16 CFR 314.4 Questioned Costs: $0 Context: The University has not: • fully updated its written information security program in compliance with the revised regulations and with organizational practices • sufficiently documented its security risk assessment and safeguards • implemented multi-factor authentication on all systems containing personally identifiable information (PII) • implemented continuous monitoring, such as penetration testing and vulnerability scanning • implemented sufficient vendor management policies and reviews • provided a written, annual report to the board. Cause: The University shares information technology resources with another organization and is in the process of determining which pieces are fully addressed with that organization and which pieces the University will need to address and document compliance with the requirements of GLBA. Effect: The University has not adequately addressed the requirements of GLBA, which may lead to unintended exposure of student information to security risks. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend the University allocate sufficient resources to address all requirements of GLBA. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.