Audit 294192

FY End
2023-06-30
Total Expended
$6.23M
Findings
2
Programs
5
Organization: Cairn University (PA)
Year: 2023 Accepted: 2024-03-08

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
374491 2023-001 Significant Deficiency - L
950933 2023-001 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $4.02M Yes 0
84.063 Federal Pell Grant Program $1.20M Yes 0
84.425 Education Stabilization Fund $776,041 Yes 1
84.033 Federal Work-Study Program $73,354 Yes 0
84.007 Federal Supplemental Educational Opportunity Grants $48,301 Yes 0

Contacts

Name Title Type
W9BFS9SMHPF6 Yunn Kang Auditee
2157024461 Ken Badasarian Auditor
No contacts on file

Notes to SEFA

Title: GENERAL INFORMATION Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Cairn University (the “University”) and is presented on the accrual basis of accounting. The information in these schedules 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,” Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the general-purpose financial statements. De Minimis Rate Used: N Rate Explanation: The University did not elect to use the 10% de minimis indirect cost rate. The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal award programs of Cairn University (the “University”). All awards received directly from federal agencies as well as financial assistance passed through other governmental agencies or non-profit organizations are included on the schedule.
Title: SUBRECIPIENTS Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Cairn University (the “University”) and is presented on the accrual basis of accounting. The information in these schedules 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,” Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the general-purpose financial statements. De Minimis Rate Used: N Rate Explanation: The University did not elect to use the 10% de minimis indirect cost rate. The University did not pass any awards through to subrecipients.
Title: MATCHING CONTRIBUTIONS Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Cairn University (the “University”) and is presented on the accrual basis of accounting. The information in these schedules 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,” Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the general-purpose financial statements. De Minimis Rate Used: N Rate Explanation: The University did not elect to use the 10% de minimis indirect cost rate. The amounts reported in the accompanying Schedule of Expenditures of Federal Awards do not include matching contributions made by the University. The University made matching contributions to the following federal awards: Federal Work-Study Program $59,720 The University received a waiver of the matching requirement from the Department of Education for the Federal Supplemental Educational Opportunity Grant program during the year ended June 30, 2023.
Title: HIGHER EDUCATION EMERGENCY RELIEF FUND Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Cairn University (the “University”) and is presented on the accrual basis of accounting. The information in these schedules 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,” Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the general-purpose financial statements. De Minimis Rate Used: N Rate Explanation: The University did not elect to use the 10% de minimis indirect cost rate. The University received funds for student and institutional purposes under the Higher Education Emergency Relief Fund (“HEERF”). These funds are administered by the University. Amounts expended for the year ended June 30, 2023, for both the student and institutional portions are included in the federal expenditures presented in the Schedule. HEERF activity for the year ended June 30, 2023 is as follows: Assistance Amount Amount Amount Listing Amount Expended – Expended – Available For Program Name Number Awarded 2022 And Prior 2023 Expenditure HEERF I Student Portion 84.425E $ 385,761 $ 385,761 $ - $ - HEERF I Institutional Portion 84.425F 385,761 385,761 - - HEERF II Student Portion 84.425E 385,761 385,761 - - HEERF II Institutional Portion 84.425F 957,779 957,779 - - HEERF II Strengthening Institutions 84.425M 202,576 99,086 103,490 - HEERF III Student Portion 84.425E 1,192,762 1,192,762 - - HEERF III Institutional Portion 84.425F 1,188,319 411,232 776,041 1,046 $ 4,698,719 $ 3,818,142 $ 879,531 $ 1,046

Finding Details

Federal Award Findings and Questioned Costs 2023-001 Significant Deficiency – Education Stabilization Fund Reporting Program: COVID-19 Education Stabilization Fund – Institutional Portion Assistance Listing Numbers: 84.425F Federal Award Identification Number: P425F200653 Federal Agency: U.S. Department of Education Federal Award Year: June 30, 2023 Condition: During our review of the required quarterly expense reports, we noted that the University did not upload the fourth quarter expense report to their website on a timely basis. Criteria: The U.S. Department of Education (the Department) has issued guidance for the Education Stabilization Funds (ESF) HEERF for quarterly reporting for all sections (a)(1), (a)(2), (a)(3) and (a)(4) that requires the institution prepare a report for each quarter for funds that are drawn down and disbursed/spent. The reports are to be posted on the institution’s website within 10 days of the calendar quarter end. Instructions are included in each form to assist in completion which includes reporting zero expenditures if there are no such expenditures to report. Context: We reviewed the University’s website for the required reporting of award expenditures and noted one quarter that was not timely reported as described under the condition above. Our sample is statistically valid as we tested the entire population. Cause: The University experienced staff turnover in the financial aid office where a new director of financial aid was hired and during the fourth quarter, the controls in place did not properly function. Effect: Institutional awards were not timely reported by the University. Questioned costs: Not applicable Recommendation: The University should establish procedures to ensure reporting requirements are communicated to staff involved with federal reporting during periods of transition.
Federal Award Findings and Questioned Costs 2023-001 Significant Deficiency – Education Stabilization Fund Reporting Program: COVID-19 Education Stabilization Fund – Institutional Portion Assistance Listing Numbers: 84.425F Federal Award Identification Number: P425F200653 Federal Agency: U.S. Department of Education Federal Award Year: June 30, 2023 Condition: During our review of the required quarterly expense reports, we noted that the University did not upload the fourth quarter expense report to their website on a timely basis. Criteria: The U.S. Department of Education (the Department) has issued guidance for the Education Stabilization Funds (ESF) HEERF for quarterly reporting for all sections (a)(1), (a)(2), (a)(3) and (a)(4) that requires the institution prepare a report for each quarter for funds that are drawn down and disbursed/spent. The reports are to be posted on the institution’s website within 10 days of the calendar quarter end. Instructions are included in each form to assist in completion which includes reporting zero expenditures if there are no such expenditures to report. Context: We reviewed the University’s website for the required reporting of award expenditures and noted one quarter that was not timely reported as described under the condition above. Our sample is statistically valid as we tested the entire population. Cause: The University experienced staff turnover in the financial aid office where a new director of financial aid was hired and during the fourth quarter, the controls in place did not properly function. Effect: Institutional awards were not timely reported by the University. Questioned costs: Not applicable Recommendation: The University should establish procedures to ensure reporting requirements are communicated to staff involved with federal reporting during periods of transition.