FAC Explorer

Audit 292743

FY End
2023-05-31
Total Expended
$1.53M
Findings
12
Programs
5
Organization: Lincoln Christian University (IL)
Year: 2023 Accepted: 2024-02-28
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
371103 2023-001 Significant Deficiency - E
371104 2023-001 Significant Deficiency - E
371105 2023-001 Significant Deficiency - E
371106 2023-001 Significant Deficiency - E
371107 2023-002 Significant Deficiency - L
371108 2023-002 Significant Deficiency - L
947545 2023-001 Significant Deficiency - E
947546 2023-001 Significant Deficiency - E
947547 2023-001 Significant Deficiency - E
947548 2023-001 Significant Deficiency - E
947549 2023-002 Significant Deficiency - L
947550 2023-002 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $890,431 Yes 2
84.038 Federal Perkins Loan Program $446,955 Yes 0
84.063 Federal Pell Grant Program $130,492 Yes 2
84.033 Federal Work-Study Program $43,093 Yes 1
84.007 Federal Supplemental Educational Opportunity Grants $18,121 Yes 1

Contacts

Name Title Type
VYQDEQZ5JH51 Danielle Fields Auditee
2177323168 Kyla Greenhoe Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the schedule of expenditures of federal awards 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. Lincoln Christian University has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: Lincoln Christian University has elected to us the 10 percent de minimus indirect cost rate as allowed under Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal grant activity of Lincoln Christian University under programs of the federal government for the year ended May 31, 2023. The information in this schedule is presented in accordance with the requirements of 2 CFR 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 Lincoln Christian University, it is not intended to and does not present the financial position, changes in net assets, or cash flows Lincoln Christian University
Title: FEDERAL STUDENT LOAN PROGRAM Accounting Policies: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the schedule of expenditures of federal awards 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. Lincoln Christian University has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: Lincoln Christian University has elected to us the 10 percent de minimus indirect cost rate as allowed under Uniform Guidance. The federal student loan programs listed subsequently are administered directly by Lincoln, and balances and transactions relating to these programs are included in Lincoln Christian University’s basic financial statements. Loans outstanding at the beginning of the year and loans made during the year are included in the federal expenditures presented in the schedule of expenditures of federal awards. The balance of loans outstanding at May 31, 2023 consists of: Federal Perkins Loan Program ALN: 84.038 Amount Outstanding: $430,239
Title: ADDITIONAL INFORMATION Accounting Policies: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the schedule of expenditures of federal awards 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. Lincoln Christian University has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: Lincoln Christian University has elected to us the 10 percent de minimus indirect cost rate as allowed under Uniform Guidance. As of and during the year ended May 31, 2023, the University did not receive any noncash federal assistance, federal insurance, or federal loans or loan guarantees.

Finding Details

Finding 2023-001
Federal Agency: U.S. Department of Education Federal Program Name: Student Financial Assistance Cluster Assistance Listing Number: 84.268 – Federal Direct Loan Program, 84.063 – Federal Pell Grant Program, 84.007 – Federal Supplemental Educational Opportunity Grant Program, 84.033 – Federal Work-Study Program Federal Award Identification Number and Year: DL – P268K231357 (1/1/22-7/27/44), Pell – P063P221357 (3/23/22-8/31/28), SEOG – P007A221203 (3/25/22-8/31/28), FWS – P033A221203 (3/25/22-8/31/28) Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: June 1, 2022 to May 31, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: The student financial aid (SFA) file must be properly reviewed and approved by the SFA department as part of their awarding process. Condition: During our eligibility testing, we noted that the SFA Director is running the acceptance report throughout the semester for direct loans. However, this review is not documented to know that it is actually occurring, as well as the results of that review at each point in time. Questioned Costs: None. Context: There is no documented review over the process for SFA award acceptance in the online portal. Cause: There is only one full time employee remaining in the SFA office. Effect: Errors could go undetected in the awarding process. Repeat Finding: No.Recommendation: We recommend the review process for awarding be documented and retained as support for the review and approval process. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2023-001
Federal Agency: U.S. Department of Education Federal Program Name: Student Financial Assistance Cluster Assistance Listing Number: 84.268 – Federal Direct Loan Program, 84.063 – Federal Pell Grant Program, 84.007 – Federal Supplemental Educational Opportunity Grant Program, 84.033 – Federal Work-Study Program Federal Award Identification Number and Year: DL – P268K231357 (1/1/22-7/27/44), Pell – P063P221357 (3/23/22-8/31/28), SEOG – P007A221203 (3/25/22-8/31/28), FWS – P033A221203 (3/25/22-8/31/28) Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: June 1, 2022 to May 31, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: The student financial aid (SFA) file must be properly reviewed and approved by the SFA department as part of their awarding process. Condition: During our eligibility testing, we noted that the SFA Director is running the acceptance report throughout the semester for direct loans. However, this review is not documented to know that it is actually occurring, as well as the results of that review at each point in time. Questioned Costs: None. Context: There is no documented review over the process for SFA award acceptance in the online portal. Cause: There is only one full time employee remaining in the SFA office. Effect: Errors could go undetected in the awarding process. Repeat Finding: No.Recommendation: We recommend the review process for awarding be documented and retained as support for the review and approval process. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2023-001
Federal Agency: U.S. Department of Education Federal Program Name: Student Financial Assistance Cluster Assistance Listing Number: 84.268 – Federal Direct Loan Program, 84.063 – Federal Pell Grant Program, 84.007 – Federal Supplemental Educational Opportunity Grant Program, 84.033 – Federal Work-Study Program Federal Award Identification Number and Year: DL – P268K231357 (1/1/22-7/27/44), Pell – P063P221357 (3/23/22-8/31/28), SEOG – P007A221203 (3/25/22-8/31/28), FWS – P033A221203 (3/25/22-8/31/28) Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: June 1, 2022 to May 31, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: The student financial aid (SFA) file must be properly reviewed and approved by the SFA department as part of their awarding process. Condition: During our eligibility testing, we noted that the SFA Director is running the acceptance report throughout the semester for direct loans. However, this review is not documented to know that it is actually occurring, as well as the results of that review at each point in time. Questioned Costs: None. Context: There is no documented review over the process for SFA award acceptance in the online portal. Cause: There is only one full time employee remaining in the SFA office. Effect: Errors could go undetected in the awarding process. Repeat Finding: No.Recommendation: We recommend the review process for awarding be documented and retained as support for the review and approval process. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2023-001
Federal Agency: U.S. Department of Education Federal Program Name: Student Financial Assistance Cluster Assistance Listing Number: 84.268 – Federal Direct Loan Program, 84.063 – Federal Pell Grant Program, 84.007 – Federal Supplemental Educational Opportunity Grant Program, 84.033 – Federal Work-Study Program Federal Award Identification Number and Year: DL – P268K231357 (1/1/22-7/27/44), Pell – P063P221357 (3/23/22-8/31/28), SEOG – P007A221203 (3/25/22-8/31/28), FWS – P033A221203 (3/25/22-8/31/28) Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: June 1, 2022 to May 31, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: The student financial aid (SFA) file must be properly reviewed and approved by the SFA department as part of their awarding process. Condition: During our eligibility testing, we noted that the SFA Director is running the acceptance report throughout the semester for direct loans. However, this review is not documented to know that it is actually occurring, as well as the results of that review at each point in time. Questioned Costs: None. Context: There is no documented review over the process for SFA award acceptance in the online portal. Cause: There is only one full time employee remaining in the SFA office. Effect: Errors could go undetected in the awarding process. Repeat Finding: No.Recommendation: We recommend the review process for awarding be documented and retained as support for the review and approval process. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2023-002
Federal Agency: U.S. Department of Education Federal Program Name: Student Financial Assistance Cluster Assistance Listing Number: 84.268 – Federal Direct Loan Program, 84.063 – Federal Pell Grant Program Federal Award Identification Number and Year: DL – P268K231357 (1/1/22-7/27/44), Pell – P063P221357 (3/23/22-8/31/28) Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: June 1, 2022 to May 31, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Proper verification procedures must be performed for those students flagged with specific verification requirements. Additionally, disbursements must agree in date and amount between the University’s records and the COD system. Condition: During our testing, we noted the following: • Inaccurate disbursement dates for one student • Inaccurate disbursement dates and amounts for a second student • Verification procedures not performed for two students prior to the fiscal year-end • Verification not listed in COD for an additional two students. Questioned Costs: None. Context: See condition noted above. Cause: There is only one full time employee remaining in the SFA office. Effect: Errors could go undetected. Repeat Finding: No. Recommendation: We recommend a secondary review be done by someone other than the SFA Director to ensure disbursements and verifications are completed accurately and timely. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2023-002
Federal Agency: U.S. Department of Education Federal Program Name: Student Financial Assistance Cluster Assistance Listing Number: 84.268 – Federal Direct Loan Program, 84.063 – Federal Pell Grant Program Federal Award Identification Number and Year: DL – P268K231357 (1/1/22-7/27/44), Pell – P063P221357 (3/23/22-8/31/28) Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: June 1, 2022 to May 31, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Proper verification procedures must be performed for those students flagged with specific verification requirements. Additionally, disbursements must agree in date and amount between the University’s records and the COD system. Condition: During our testing, we noted the following: • Inaccurate disbursement dates for one student • Inaccurate disbursement dates and amounts for a second student • Verification procedures not performed for two students prior to the fiscal year-end • Verification not listed in COD for an additional two students. Questioned Costs: None. Context: See condition noted above. Cause: There is only one full time employee remaining in the SFA office. Effect: Errors could go undetected. Repeat Finding: No. Recommendation: We recommend a secondary review be done by someone other than the SFA Director to ensure disbursements and verifications are completed accurately and timely. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2023-001
Federal Agency: U.S. Department of Education Federal Program Name: Student Financial Assistance Cluster Assistance Listing Number: 84.268 – Federal Direct Loan Program, 84.063 – Federal Pell Grant Program, 84.007 – Federal Supplemental Educational Opportunity Grant Program, 84.033 – Federal Work-Study Program Federal Award Identification Number and Year: DL – P268K231357 (1/1/22-7/27/44), Pell – P063P221357 (3/23/22-8/31/28), SEOG – P007A221203 (3/25/22-8/31/28), FWS – P033A221203 (3/25/22-8/31/28) Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: June 1, 2022 to May 31, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: The student financial aid (SFA) file must be properly reviewed and approved by the SFA department as part of their awarding process. Condition: During our eligibility testing, we noted that the SFA Director is running the acceptance report throughout the semester for direct loans. However, this review is not documented to know that it is actually occurring, as well as the results of that review at each point in time. Questioned Costs: None. Context: There is no documented review over the process for SFA award acceptance in the online portal. Cause: There is only one full time employee remaining in the SFA office. Effect: Errors could go undetected in the awarding process. Repeat Finding: No.Recommendation: We recommend the review process for awarding be documented and retained as support for the review and approval process. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2023-001
Federal Agency: U.S. Department of Education Federal Program Name: Student Financial Assistance Cluster Assistance Listing Number: 84.268 – Federal Direct Loan Program, 84.063 – Federal Pell Grant Program, 84.007 – Federal Supplemental Educational Opportunity Grant Program, 84.033 – Federal Work-Study Program Federal Award Identification Number and Year: DL – P268K231357 (1/1/22-7/27/44), Pell – P063P221357 (3/23/22-8/31/28), SEOG – P007A221203 (3/25/22-8/31/28), FWS – P033A221203 (3/25/22-8/31/28) Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: June 1, 2022 to May 31, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: The student financial aid (SFA) file must be properly reviewed and approved by the SFA department as part of their awarding process. Condition: During our eligibility testing, we noted that the SFA Director is running the acceptance report throughout the semester for direct loans. However, this review is not documented to know that it is actually occurring, as well as the results of that review at each point in time. Questioned Costs: None. Context: There is no documented review over the process for SFA award acceptance in the online portal. Cause: There is only one full time employee remaining in the SFA office. Effect: Errors could go undetected in the awarding process. Repeat Finding: No.Recommendation: We recommend the review process for awarding be documented and retained as support for the review and approval process. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2023-001
Federal Agency: U.S. Department of Education Federal Program Name: Student Financial Assistance Cluster Assistance Listing Number: 84.268 – Federal Direct Loan Program, 84.063 – Federal Pell Grant Program, 84.007 – Federal Supplemental Educational Opportunity Grant Program, 84.033 – Federal Work-Study Program Federal Award Identification Number and Year: DL – P268K231357 (1/1/22-7/27/44), Pell – P063P221357 (3/23/22-8/31/28), SEOG – P007A221203 (3/25/22-8/31/28), FWS – P033A221203 (3/25/22-8/31/28) Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: June 1, 2022 to May 31, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: The student financial aid (SFA) file must be properly reviewed and approved by the SFA department as part of their awarding process. Condition: During our eligibility testing, we noted that the SFA Director is running the acceptance report throughout the semester for direct loans. However, this review is not documented to know that it is actually occurring, as well as the results of that review at each point in time. Questioned Costs: None. Context: There is no documented review over the process for SFA award acceptance in the online portal. Cause: There is only one full time employee remaining in the SFA office. Effect: Errors could go undetected in the awarding process. Repeat Finding: No.Recommendation: We recommend the review process for awarding be documented and retained as support for the review and approval process. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2023-001
Federal Agency: U.S. Department of Education Federal Program Name: Student Financial Assistance Cluster Assistance Listing Number: 84.268 – Federal Direct Loan Program, 84.063 – Federal Pell Grant Program, 84.007 – Federal Supplemental Educational Opportunity Grant Program, 84.033 – Federal Work-Study Program Federal Award Identification Number and Year: DL – P268K231357 (1/1/22-7/27/44), Pell – P063P221357 (3/23/22-8/31/28), SEOG – P007A221203 (3/25/22-8/31/28), FWS – P033A221203 (3/25/22-8/31/28) Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: June 1, 2022 to May 31, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: The student financial aid (SFA) file must be properly reviewed and approved by the SFA department as part of their awarding process. Condition: During our eligibility testing, we noted that the SFA Director is running the acceptance report throughout the semester for direct loans. However, this review is not documented to know that it is actually occurring, as well as the results of that review at each point in time. Questioned Costs: None. Context: There is no documented review over the process for SFA award acceptance in the online portal. Cause: There is only one full time employee remaining in the SFA office. Effect: Errors could go undetected in the awarding process. Repeat Finding: No.Recommendation: We recommend the review process for awarding be documented and retained as support for the review and approval process. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2023-002
Federal Agency: U.S. Department of Education Federal Program Name: Student Financial Assistance Cluster Assistance Listing Number: 84.268 – Federal Direct Loan Program, 84.063 – Federal Pell Grant Program Federal Award Identification Number and Year: DL – P268K231357 (1/1/22-7/27/44), Pell – P063P221357 (3/23/22-8/31/28) Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: June 1, 2022 to May 31, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Proper verification procedures must be performed for those students flagged with specific verification requirements. Additionally, disbursements must agree in date and amount between the University’s records and the COD system. Condition: During our testing, we noted the following: • Inaccurate disbursement dates for one student • Inaccurate disbursement dates and amounts for a second student • Verification procedures not performed for two students prior to the fiscal year-end • Verification not listed in COD for an additional two students. Questioned Costs: None. Context: See condition noted above. Cause: There is only one full time employee remaining in the SFA office. Effect: Errors could go undetected. Repeat Finding: No. Recommendation: We recommend a secondary review be done by someone other than the SFA Director to ensure disbursements and verifications are completed accurately and timely. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2023-002
Federal Agency: U.S. Department of Education Federal Program Name: Student Financial Assistance Cluster Assistance Listing Number: 84.268 – Federal Direct Loan Program, 84.063 – Federal Pell Grant Program Federal Award Identification Number and Year: DL – P268K231357 (1/1/22-7/27/44), Pell – P063P221357 (3/23/22-8/31/28) Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: June 1, 2022 to May 31, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Proper verification procedures must be performed for those students flagged with specific verification requirements. Additionally, disbursements must agree in date and amount between the University’s records and the COD system. Condition: During our testing, we noted the following: • Inaccurate disbursement dates for one student • Inaccurate disbursement dates and amounts for a second student • Verification procedures not performed for two students prior to the fiscal year-end • Verification not listed in COD for an additional two students. Questioned Costs: None. Context: See condition noted above. Cause: There is only one full time employee remaining in the SFA office. Effect: Errors could go undetected. Repeat Finding: No. Recommendation: We recommend a secondary review be done by someone other than the SFA Director to ensure disbursements and verifications are completed accurately and timely. Views of responsible officials: There is no disagreement with the audit finding.