Audit 29385

FY End

2022-06-30

Total Expended

$3.38M

Findings

4

Programs

3

Organization: Interdenominational Theological Center (GA)

Year: 2022 Accepted: 2023-03-08

Auditor: The Wesley Peachtree Group CPA

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
32747	2022-002	Significant Deficiency	Yes	AEL
32748	2022-002	Significant Deficiency	Yes	AEL
609189	2022-002	Significant Deficiency	Yes	AEL
609190	2022-002	Significant Deficiency	Yes	AEL

ALN	Program	Spent	Major	Findings
84.268	Federal Direct Student Loans	$3.21M	Yes	1
84.033	Federal Work-Study Program	$50,399	Yes	1
84.425	Education Stabilization Fund	$15,406	-	0

Contacts

Name	Title	Type
N0TAV1ALABLE	Ms. Paula Scotman	Auditee
4045277761	Donald K. Murphy	Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The Center participates in several programs sponsored by various government agencies as listed in the accompanying Schedule of Expenditures of Federal Awards. All programs are subject to audit by the various agencies and they have the authority to determine liabilities, limit or suspend the Center's participation in the federal programs. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) is presented on an accrual basis of accounting consistent with the basis of accounting used by the Center in the preparation of its financial statements with the exception of government loans and guarantees. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The Schedule includes all known federal and pass-through federal funds expended by the Center for the year ended June 30, 2022. All grants/awards should be reviewed in detail to determine if they contain any special provisions (for example, some awards require they be treated as major programs, even though they might not otherwise qualify as such). If the grant/award contains federal funding, the organization will obtain the following: name of the federal agency, award period, Catalog of Federal Domestic Assistance (CFDA) number. The grant/award should also be researched to determine if it is part of a cluster (including research and development) or a federal loan program. If the grant/award is passed through to/from a sub-recipient, the organization will obtain the pass-through entity identifying number. Prior to the grant/award becoming operational, the organization should review the OMB Compliance Supplements Matrix of Compliance Requirements. For every federally funded grant/award, personnel should be assigned for each area of compliance. Expenditures must be tracked for each individual grant/award. The accounting system must be set up to capture this information, and individuals must be established to assign expenses to each grant/award. De Minimis Rate Used: Y Rate Explanation: The Center does not have a federally negotiated indirect cost rate agreement. The Center has elected to use the 10% de mini mis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2022-002

Finding 2022-002 ? U.S. Department of Education (USDE), Title IV Student Financial Aid Programs (Significant Deficiency) Information on the federal program ? Federal Direct Student Loans, CFDA No. 84.268, June 30, 2022; Federal Work-Study Program, CFDA No. 84.003, June 30, 2022 Criteria ? Federal regulations governing the Title IV programs. Condition ? Numerous instances of noncompliance were noted, as more fully described in the context below. Questioned Costs ? As provided below. Context ? We observed the following conditions in connection with our testing of the various U. S. Department of Education, Title IV, Student Financial Assistance Programs: 1. Enrollment status reporting to NSLDS for four (4) students tested was not provided as required by Federal regulations. 2. The Center did not provide the Common Origination and Disbursement (COD) funding report for the entire 2021-2022 award year for Federal Direct Loans. As of the report date, the Center had requested it from the U.S. Department of Education. Cause ? Oversight by responsible employees of properly monitoring required elements. Effect ? The Center's participation in the Title IV programs could be subject to USDE sanctions as applicable. Auditor's Recommendation ? The Center should implement corrective actions to ensure that the above findings are resolved and do not recur in future periods. Moreover, internal controls over compliance with federal program regulations should be revisited to ensure adequate supervisory controls, quality assurance reviews of compliance steps, technical training of staff, and adequate procedures are being followed for compliance purposes. View of Responsible Officials ? The enrollment information was provided to the FA auditor and several inquiries were made for verification and no timely response was received from the FA auditor. Three versions of the COD reports were provided along with several inquiries for confirmation that the report is what was needed. No timely response was made to our request. Management further explained that it takes 24 hrs. to receive the revised report if what was submitted was not what was needed, again no timely response from the FA auditor.

Finding 2022-002

Finding 2022-002 ? U.S. Department of Education (USDE), Title IV Student Financial Aid Programs (Significant Deficiency) Information on the federal program ? Federal Direct Student Loans, CFDA No. 84.268, June 30, 2022; Federal Work-Study Program, CFDA No. 84.003, June 30, 2022 Criteria ? Federal regulations governing the Title IV programs. Condition ? Numerous instances of noncompliance were noted, as more fully described in the context below. Questioned Costs ? As provided below. Context ? We observed the following conditions in connection with our testing of the various U. S. Department of Education, Title IV, Student Financial Assistance Programs: 1. Enrollment status reporting to NSLDS for four (4) students tested was not provided as required by Federal regulations. 2. The Center did not provide the Common Origination and Disbursement (COD) funding report for the entire 2021-2022 award year for Federal Direct Loans. As of the report date, the Center had requested it from the U.S. Department of Education. Cause ? Oversight by responsible employees of properly monitoring required elements. Effect ? The Center's participation in the Title IV programs could be subject to USDE sanctions as applicable. Auditor's Recommendation ? The Center should implement corrective actions to ensure that the above findings are resolved and do not recur in future periods. Moreover, internal controls over compliance with federal program regulations should be revisited to ensure adequate supervisory controls, quality assurance reviews of compliance steps, technical training of staff, and adequate procedures are being followed for compliance purposes. View of Responsible Officials ? The enrollment information was provided to the FA auditor and several inquiries were made for verification and no timely response was received from the FA auditor. Three versions of the COD reports were provided along with several inquiries for confirmation that the report is what was needed. No timely response was made to our request. Management further explained that it takes 24 hrs. to receive the revised report if what was submitted was not what was needed, again no timely response from the FA auditor.

Finding 2022-002

Finding 2022-002 ? U.S. Department of Education (USDE), Title IV Student Financial Aid Programs (Significant Deficiency) Information on the federal program ? Federal Direct Student Loans, CFDA No. 84.268, June 30, 2022; Federal Work-Study Program, CFDA No. 84.003, June 30, 2022 Criteria ? Federal regulations governing the Title IV programs. Condition ? Numerous instances of noncompliance were noted, as more fully described in the context below. Questioned Costs ? As provided below. Context ? We observed the following conditions in connection with our testing of the various U. S. Department of Education, Title IV, Student Financial Assistance Programs: 1. Enrollment status reporting to NSLDS for four (4) students tested was not provided as required by Federal regulations. 2. The Center did not provide the Common Origination and Disbursement (COD) funding report for the entire 2021-2022 award year for Federal Direct Loans. As of the report date, the Center had requested it from the U.S. Department of Education. Cause ? Oversight by responsible employees of properly monitoring required elements. Effect ? The Center's participation in the Title IV programs could be subject to USDE sanctions as applicable. Auditor's Recommendation ? The Center should implement corrective actions to ensure that the above findings are resolved and do not recur in future periods. Moreover, internal controls over compliance with federal program regulations should be revisited to ensure adequate supervisory controls, quality assurance reviews of compliance steps, technical training of staff, and adequate procedures are being followed for compliance purposes. View of Responsible Officials ? The enrollment information was provided to the FA auditor and several inquiries were made for verification and no timely response was received from the FA auditor. Three versions of the COD reports were provided along with several inquiries for confirmation that the report is what was needed. No timely response was made to our request. Management further explained that it takes 24 hrs. to receive the revised report if what was submitted was not what was needed, again no timely response from the FA auditor.

Finding 2022-002

Finding 2022-002 ? U.S. Department of Education (USDE), Title IV Student Financial Aid Programs (Significant Deficiency) Information on the federal program ? Federal Direct Student Loans, CFDA No. 84.268, June 30, 2022; Federal Work-Study Program, CFDA No. 84.003, June 30, 2022 Criteria ? Federal regulations governing the Title IV programs. Condition ? Numerous instances of noncompliance were noted, as more fully described in the context below. Questioned Costs ? As provided below. Context ? We observed the following conditions in connection with our testing of the various U. S. Department of Education, Title IV, Student Financial Assistance Programs: 1. Enrollment status reporting to NSLDS for four (4) students tested was not provided as required by Federal regulations. 2. The Center did not provide the Common Origination and Disbursement (COD) funding report for the entire 2021-2022 award year for Federal Direct Loans. As of the report date, the Center had requested it from the U.S. Department of Education. Cause ? Oversight by responsible employees of properly monitoring required elements. Effect ? The Center's participation in the Title IV programs could be subject to USDE sanctions as applicable. Auditor's Recommendation ? The Center should implement corrective actions to ensure that the above findings are resolved and do not recur in future periods. Moreover, internal controls over compliance with federal program regulations should be revisited to ensure adequate supervisory controls, quality assurance reviews of compliance steps, technical training of staff, and adequate procedures are being followed for compliance purposes. View of Responsible Officials ? The enrollment information was provided to the FA auditor and several inquiries were made for verification and no timely response was received from the FA auditor. Three versions of the COD reports were provided along with several inquiries for confirmation that the report is what was needed. No timely response was made to our request. Management further explained that it takes 24 hrs. to receive the revised report if what was submitted was not what was needed, again no timely response from the FA auditor.