Audit 292763

FY End
2023-05-31
Total Expended
$32.11M
Findings
2
Programs
16
Year: 2023 Accepted: 2024-02-28
Auditor: Forvis

Organization Exclusion Status:

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Contacts

Name Title Type
RRWPRNJR5L49 Christina Miranda Auditee
2104313921 Makayla Matheson Auditor
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Notes to SEFA

Title: Note 1: Basis of Presentation Accounting Policies: Expenditures 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. De Minimis Rate Used: N Rate Explanation: The University has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of Our Lady of the Lake University of San Antonio (the 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 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 University, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the University.
Title: Note 4: Federal Loan Programs Accounting Policies: Expenditures 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. De Minimis Rate Used: N Rate Explanation: The University has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The federal loan program listed subsequently is administered directly by the University, and balances and transactions relating to this program are included in the University’s consolidated 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. The balance of loans outstanding at May 31, 2023 consists of: Assistance Listing Number: 84.038, Program Name: Federal Perkins Loan Program, Oustanding Balance at May 31, 2023: $458,269. For purposes of the Schedule, loans made to students under the Federal Direct Student Loans program are presented as federal expenditures. Neither the funds advanced to students, nor the outstanding loan balance are included in the consolidated financial statements, since the loans are made and subsequently collected by the federal government.

Finding Details

Federal Program – Student Financial Assistance Cluster Assistance Listing No. 84.268 U.S. Department of Education Program Year 2022–2023 Criteria or Specific Requirement – Direct Loan Reconciliation CFR 685.300 Condition – The University’s failed to complete required direct loan reconciliations during the 2022–2023 aid year. The University is responsible for reconcilng University disbursement data to the Department of Education’s Common Origination and Disbursement System on a monthly basis and for establishing internal controls to ensure that such reconciliations are completed within federal requirements. Questioned Costs – N/A Context – Out of a population of 12 months, two months were selected for testing. No support for the monthly reconcilations for these months was able to be provided, and it was noted that reconcilations did not take place for any months during the year ended May 31, 2023. Our sample was not, and was not intended to be, statistically valid. Effect – The University failed to complete monthly reconcilations as required and could have had errors in direct loans that were not identified. Cause – The University experienced turnover and decreased staffing levels during the year. Identification as a Repeat Finding, if Applicable – N/A Recommendation – The University should put controls in place to ensure that reconcilations are being completed on a monthly basis as required. Corrective Action Plan – OLLU has already begun coordinating processes between its Accounting and Financial Aid departments to download the monthly SAS into the University’s system electronically, where Accounting will then reconcile the statement monthly as part of its month-end close procedures. The Financial Aid Director will be responsible for ensuring that the statement is downloaded monthly as a part of the regular electronic data file transfer between OLLU and the Department of Education. The Senior Accountant in the Accounting Department will generate the report in Colleague via the DRSS process and reconcile the SAS statement to cash records. The Director of Accounting and Reporting will review the reconciliation monthly. Anticipated Completion Date – February 15, 2024
Federal Program – Student Financial Assistance Cluster Assistance Listing No. 84.268 U.S. Department of Education Program Year 2022–2023 Criteria or Specific Requirement – Direct Loan Reconciliation CFR 685.300 Condition – The University’s failed to complete required direct loan reconciliations during the 2022–2023 aid year. The University is responsible for reconcilng University disbursement data to the Department of Education’s Common Origination and Disbursement System on a monthly basis and for establishing internal controls to ensure that such reconciliations are completed within federal requirements. Questioned Costs – N/A Context – Out of a population of 12 months, two months were selected for testing. No support for the monthly reconcilations for these months was able to be provided, and it was noted that reconcilations did not take place for any months during the year ended May 31, 2023. Our sample was not, and was not intended to be, statistically valid. Effect – The University failed to complete monthly reconcilations as required and could have had errors in direct loans that were not identified. Cause – The University experienced turnover and decreased staffing levels during the year. Identification as a Repeat Finding, if Applicable – N/A Recommendation – The University should put controls in place to ensure that reconcilations are being completed on a monthly basis as required. Corrective Action Plan – OLLU has already begun coordinating processes between its Accounting and Financial Aid departments to download the monthly SAS into the University’s system electronically, where Accounting will then reconcile the statement monthly as part of its month-end close procedures. The Financial Aid Director will be responsible for ensuring that the statement is downloaded monthly as a part of the regular electronic data file transfer between OLLU and the Department of Education. The Senior Accountant in the Accounting Department will generate the report in Colleague via the DRSS process and reconcile the SAS statement to cash records. The Director of Accounting and Reporting will review the reconciliation monthly. Anticipated Completion Date – February 15, 2024