Audit 293308

FY End
2023-06-30
Total Expended
$21.81M
Findings
6
Programs
5
Organization: Central Methodist University (MO)
Year: 2023 Accepted: 2024-03-04

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
372054 2023-001 Significant Deficiency Yes L
372055 2023-001 Significant Deficiency Yes L
372056 2023-001 Significant Deficiency Yes L
948496 2023-001 Significant Deficiency Yes L
948497 2023-001 Significant Deficiency Yes L
948498 2023-001 Significant Deficiency Yes L

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $13.07M Yes 0
84.007 Federal Supplemental Educational Opportunity Grants $9,500 Yes 0
84.033 Federal Work-Study Program $9,500 Yes 0
84.063 Federal Pell Grant Program $7,995 Yes 0
84.425 Education Stabilization Fund $6,138 Yes 1

Contacts

Name Title Type
UCG6EBGY8Y66 Julee Sherman Auditee
6602483391 Amanda Schultz Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: The schedule of expenditures of federal awards includes only the current year federal grant activity of Central Methodist University (the University) and is presented on the accrual basis of accounting. 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. Under these standards, Federal Pell Grant Program awards are reported as expenditures, whereas under U.S. generally accepted accounting principles they are not reported in the University's statement of activities as expenses or federal aid. New loan advances under the Federal Direct Student Loans Program represent the amount of such loans processed by the University for the year and are not reportable as transactions in the University's financial statements under U.S. generally accepted accounting principles. Other amounts presented in this schedule as expenditures may differ from amounts presented in, or used in the preparation of, the basic financial statements, although such differences are not material to the basic financial statements. De Minimis Rate Used: Y Rate Explanation: The University has elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The schedule of expenditures of federal awards includes only the current year federal grant activity of Central Methodist University (the University) and is presented on the accrual basis of accounting. 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. Under these standards, Federal Pell Grant Program awards are reported as expenditures, whereas under U.S. generally accepted accounting principles they are not reported in the University's statement of activities as expenses or federal aid. New loan advances under the Federal Direct Student Loans Program represent the amount of such loans processed by the University for the year and are not reportable as transactions in the University's financial statements under U.S. generally accepted accounting principles. Other amounts presented in this schedule as expenditures may differ from amounts presented in, or used in the preparation of, the basic financial statements, although such differences are not material to the basic financial statements.
Title: INDIRECT COST RATE Accounting Policies: The schedule of expenditures of federal awards includes only the current year federal grant activity of Central Methodist University (the University) and is presented on the accrual basis of accounting. 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. Under these standards, Federal Pell Grant Program awards are reported as expenditures, whereas under U.S. generally accepted accounting principles they are not reported in the University's statement of activities as expenses or federal aid. New loan advances under the Federal Direct Student Loans Program represent the amount of such loans processed by the University for the year and are not reportable as transactions in the University's financial statements under U.S. generally accepted accounting principles. Other amounts presented in this schedule as expenditures may differ from amounts presented in, or used in the preparation of, the basic financial statements, although such differences are not material to the basic financial statements. De Minimis Rate Used: Y Rate Explanation: The University has elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The University has elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Title: LOANS OUTSTANDING Accounting Policies: The schedule of expenditures of federal awards includes only the current year federal grant activity of Central Methodist University (the University) and is presented on the accrual basis of accounting. 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. Under these standards, Federal Pell Grant Program awards are reported as expenditures, whereas under U.S. generally accepted accounting principles they are not reported in the University's statement of activities as expenses or federal aid. New loan advances under the Federal Direct Student Loans Program represent the amount of such loans processed by the University for the year and are not reportable as transactions in the University's financial statements under U.S. generally accepted accounting principles. Other amounts presented in this schedule as expenditures may differ from amounts presented in, or used in the preparation of, the basic financial statements, although such differences are not material to the basic financial statements. De Minimis Rate Used: Y Rate Explanation: The University has elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The University had the following loan balances oustanding as of June 30, 2023: Federal Perkins Loan Program - Assistance Listing Number 84.038 - Amount Outstanding $25,855

Finding Details

U.S. Department of Education Finding 2023-001 (continuing finding): Higher Education Emergency Relief Fund (HEERF) Reporting (significant deficiency) Statement of Condition: Per the Department of Education, the required quarterly institutional reports should only include expenditures for the quarter if the funds had been drawn down from G5 and disbursed during the quarter. The University publicly posted the required quarterly institutional reports for HEERF using actual institutional expenditures, rather than actual draws, for Q3 2022. No other issues were noted with the accuracy of the reports. Criteria: The Department of Education requires that institutions publicly post the required reports to the institution's website that only include the expenditures drawn down from G5 and disbursed during the quarter. Effect of Condition: As the University posted actual institutional expenditures, rather than actual draws, for Q3 2022, the University was not in compliance with the HEERF reporting requirements for that quarter. Cause of Condition: The errors were due to a lack of clarity/uncertainty with the HEERF reporting requirements. Recommendation: We recommend the University develop and implement policies and procedures to ensure the reports are accurate. Management's Response: Management agrees and will correct the Q3 2022 HEERF report accordingly.
U.S. Department of Education Finding 2023-001 (continuing finding): Higher Education Emergency Relief Fund (HEERF) Reporting (significant deficiency) Statement of Condition: Per the Department of Education, the required quarterly institutional reports should only include expenditures for the quarter if the funds had been drawn down from G5 and disbursed during the quarter. The University publicly posted the required quarterly institutional reports for HEERF using actual institutional expenditures, rather than actual draws, for Q3 2022. No other issues were noted with the accuracy of the reports. Criteria: The Department of Education requires that institutions publicly post the required reports to the institution's website that only include the expenditures drawn down from G5 and disbursed during the quarter. Effect of Condition: As the University posted actual institutional expenditures, rather than actual draws, for Q3 2022, the University was not in compliance with the HEERF reporting requirements for that quarter. Cause of Condition: The errors were due to a lack of clarity/uncertainty with the HEERF reporting requirements. Recommendation: We recommend the University develop and implement policies and procedures to ensure the reports are accurate. Management's Response: Management agrees and will correct the Q3 2022 HEERF report accordingly.
U.S. Department of Education Finding 2023-001 (continuing finding): Higher Education Emergency Relief Fund (HEERF) Reporting (significant deficiency) Statement of Condition: Per the Department of Education, the required quarterly institutional reports should only include expenditures for the quarter if the funds had been drawn down from G5 and disbursed during the quarter. The University publicly posted the required quarterly institutional reports for HEERF using actual institutional expenditures, rather than actual draws, for Q3 2022. No other issues were noted with the accuracy of the reports. Criteria: The Department of Education requires that institutions publicly post the required reports to the institution's website that only include the expenditures drawn down from G5 and disbursed during the quarter. Effect of Condition: As the University posted actual institutional expenditures, rather than actual draws, for Q3 2022, the University was not in compliance with the HEERF reporting requirements for that quarter. Cause of Condition: The errors were due to a lack of clarity/uncertainty with the HEERF reporting requirements. Recommendation: We recommend the University develop and implement policies and procedures to ensure the reports are accurate. Management's Response: Management agrees and will correct the Q3 2022 HEERF report accordingly.
U.S. Department of Education Finding 2023-001 (continuing finding): Higher Education Emergency Relief Fund (HEERF) Reporting (significant deficiency) Statement of Condition: Per the Department of Education, the required quarterly institutional reports should only include expenditures for the quarter if the funds had been drawn down from G5 and disbursed during the quarter. The University publicly posted the required quarterly institutional reports for HEERF using actual institutional expenditures, rather than actual draws, for Q3 2022. No other issues were noted with the accuracy of the reports. Criteria: The Department of Education requires that institutions publicly post the required reports to the institution's website that only include the expenditures drawn down from G5 and disbursed during the quarter. Effect of Condition: As the University posted actual institutional expenditures, rather than actual draws, for Q3 2022, the University was not in compliance with the HEERF reporting requirements for that quarter. Cause of Condition: The errors were due to a lack of clarity/uncertainty with the HEERF reporting requirements. Recommendation: We recommend the University develop and implement policies and procedures to ensure the reports are accurate. Management's Response: Management agrees and will correct the Q3 2022 HEERF report accordingly.
U.S. Department of Education Finding 2023-001 (continuing finding): Higher Education Emergency Relief Fund (HEERF) Reporting (significant deficiency) Statement of Condition: Per the Department of Education, the required quarterly institutional reports should only include expenditures for the quarter if the funds had been drawn down from G5 and disbursed during the quarter. The University publicly posted the required quarterly institutional reports for HEERF using actual institutional expenditures, rather than actual draws, for Q3 2022. No other issues were noted with the accuracy of the reports. Criteria: The Department of Education requires that institutions publicly post the required reports to the institution's website that only include the expenditures drawn down from G5 and disbursed during the quarter. Effect of Condition: As the University posted actual institutional expenditures, rather than actual draws, for Q3 2022, the University was not in compliance with the HEERF reporting requirements for that quarter. Cause of Condition: The errors were due to a lack of clarity/uncertainty with the HEERF reporting requirements. Recommendation: We recommend the University develop and implement policies and procedures to ensure the reports are accurate. Management's Response: Management agrees and will correct the Q3 2022 HEERF report accordingly.
U.S. Department of Education Finding 2023-001 (continuing finding): Higher Education Emergency Relief Fund (HEERF) Reporting (significant deficiency) Statement of Condition: Per the Department of Education, the required quarterly institutional reports should only include expenditures for the quarter if the funds had been drawn down from G5 and disbursed during the quarter. The University publicly posted the required quarterly institutional reports for HEERF using actual institutional expenditures, rather than actual draws, for Q3 2022. No other issues were noted with the accuracy of the reports. Criteria: The Department of Education requires that institutions publicly post the required reports to the institution's website that only include the expenditures drawn down from G5 and disbursed during the quarter. Effect of Condition: As the University posted actual institutional expenditures, rather than actual draws, for Q3 2022, the University was not in compliance with the HEERF reporting requirements for that quarter. Cause of Condition: The errors were due to a lack of clarity/uncertainty with the HEERF reporting requirements. Recommendation: We recommend the University develop and implement policies and procedures to ensure the reports are accurate. Management's Response: Management agrees and will correct the Q3 2022 HEERF report accordingly.