FAC Explorer

Audit 295042

FY End
2023-06-30
Total Expended
$21.59M
Findings
2
Programs
9
Organization: Gwynedd Mercy University (PA)
Year: 2023 Accepted: 2024-03-14
Auditor: Baker Tilly US LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
376018 2023-001 Significant Deficiency - N
952460 2023-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $17.72M Yes 1
84.063 Federal Pell Grant Program $2.17M Yes 0
93.364 Nursing Student Loans $929,184 Yes 0
84.033 Federal Work-Study Program $291,243 Yes 0
84.038 Federal Perkins Loans $226,537 Yes 0
84.007 Federal Direct Student Loans $185,868 Yes 0
84.407 Transition Programs for Students with Intellectual Disabilities Into Higher Education $44,000 - 0
47.070 Computer and Information Science and Engineering $11,775 - 0
84.425 Education Stabilization Fund $3,253 - 0

Contacts

Name Title Type
P3U1S9SVCB65 Jennifer Ginnetti Auditee
2156415506 Caroline Hipple Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of Gwynedd Mercy University (the University) and is presented on the accrual basis of accounting. The information in the Schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Expenditures for other federal awards of the University are recognized primarily on the accrual basis of accounting and are determined using the cost accounting principles and procedures set forth 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 grant activity of Gwynedd Mercy University (the University) and is presented on the accrual basis of accounting. The information in the 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
Title: Summary of Significant Accounting Policies Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of Gwynedd Mercy University (the University) and is presented on the accrual basis of accounting. The information in the Schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Expenditures for other federal awards of the University are recognized primarily on the accrual basis of accounting and are determined using the cost accounting principles and procedures set forth 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. Expenditures for other federal awards of the University are recognized primarily on the accrual basis of accounting and are determined using the cost accounting principles and procedures set forth in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: Loan Programs Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of Gwynedd Mercy University (the University) and is presented on the accrual basis of accounting. The information in the Schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Expenditures for other federal awards of the University are recognized primarily on the accrual basis of accounting and are determined using the cost accounting principles and procedures set forth 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 Perkins Loan Program and the Nursing Student Loan Program are administered directly by the University and balances and transactions relating to these programs are included in the 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. Federal Perkins Loans outstanding at June 30, 2023 totaled $200,548 and there were no loans issued in 2023. Nursing Student Loans outstanding at June 30, 2023 totaled $795,435 and loans issued in 2023 were $55,116.
Title: Indirect Cost Rate Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of Gwynedd Mercy University (the University) and is presented on the accrual basis of accounting. The information in the Schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Expenditures for other federal awards of the University are recognized primarily on the accrual basis of accounting and are determined using the cost accounting principles and procedures set forth 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 University has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2023-001
Finding 2023-001: Enrollment Reporting - Significant Deficiency ALN: 84.268 Federal Direct Loan Program Award Year: July 1, 2022 - June 30, 2023 Federal Agency: U.S. Department of Education Pass-Through Entity: Not applicable Criteria: Title IV regulations (34 CFR 685.309(b)) require that upon receipt of an enrollment report from the Secretary, institutions must update all information included in the report and return the report to the Secretary: (i) in the manner and format prescribed by the Secretary; and (ii) within the timeframe prescribed by the Secretary. Unless it expects to submit its next updated enrollment report to the Secretary within the next 60 days, an institution must notify the Secretary within 30 days after the date the institution discovers that: (i) a loan under Title IV of the Act was made to or on behalf of a student who was enrolled or accepted for enrollment at the institution, and the student has ceased to be enrolled on at least a half-time basis or failed to enroll on at least a half-time basis for the period for which the loan was intended; or (ii) a student who is enrolled at the institution and who received a loan under Title IV of the Act has changed his or her permanent address. Condition: For one of the twenty-five students tested, their effective date of status change at the campus level did not agree to that at the program level. For three of the twenty-five students tested, the effective date of the status change at both the campus and program levels did not match the date in which the University determined that their status changed. Cause: For one student, the registrar mistakenly entered the wrong date within their system, which was then transferred to NSLDS at the campus level. This date did not match that at the program level, which was correctly reported. For three of the twenty-five students tested, these students changed status between terms, in which case the effective date of their status change should have been reported as the first day of the semester with the status change, in line with University policy. However, the Registrar erroneously reported a different effective date, which in each case was within two weeks of the date that should have been reported, but ultimately did not match the date exactly. Effect: The accuracy of Title IV student loan records depends heavily on the accuracy of the enrollment information reported by institutions. If an institution does not review, update, and verify student enrollment statuses, effective dates of the enrollment status, and the anticipated completion dates, then the Title IV student loan records will be inaccurate. Questioned Costs: None. Recommendation: It is recommended that the University review policies and procedures in place to resolve reporting issues in a timely manner to facilitate compliance with Title IV regulations. Management Response: Each error was corrected within the system. Going forward, the reports submitted to NSLDS will be closely reviewed to ensure effective dates for student changes are appropriately reported.
Finding 2023-001
Finding 2023-001: Enrollment Reporting - Significant Deficiency ALN: 84.268 Federal Direct Loan Program Award Year: July 1, 2022 - June 30, 2023 Federal Agency: U.S. Department of Education Pass-Through Entity: Not applicable Criteria: Title IV regulations (34 CFR 685.309(b)) require that upon receipt of an enrollment report from the Secretary, institutions must update all information included in the report and return the report to the Secretary: (i) in the manner and format prescribed by the Secretary; and (ii) within the timeframe prescribed by the Secretary. Unless it expects to submit its next updated enrollment report to the Secretary within the next 60 days, an institution must notify the Secretary within 30 days after the date the institution discovers that: (i) a loan under Title IV of the Act was made to or on behalf of a student who was enrolled or accepted for enrollment at the institution, and the student has ceased to be enrolled on at least a half-time basis or failed to enroll on at least a half-time basis for the period for which the loan was intended; or (ii) a student who is enrolled at the institution and who received a loan under Title IV of the Act has changed his or her permanent address. Condition: For one of the twenty-five students tested, their effective date of status change at the campus level did not agree to that at the program level. For three of the twenty-five students tested, the effective date of the status change at both the campus and program levels did not match the date in which the University determined that their status changed. Cause: For one student, the registrar mistakenly entered the wrong date within their system, which was then transferred to NSLDS at the campus level. This date did not match that at the program level, which was correctly reported. For three of the twenty-five students tested, these students changed status between terms, in which case the effective date of their status change should have been reported as the first day of the semester with the status change, in line with University policy. However, the Registrar erroneously reported a different effective date, which in each case was within two weeks of the date that should have been reported, but ultimately did not match the date exactly. Effect: The accuracy of Title IV student loan records depends heavily on the accuracy of the enrollment information reported by institutions. If an institution does not review, update, and verify student enrollment statuses, effective dates of the enrollment status, and the anticipated completion dates, then the Title IV student loan records will be inaccurate. Questioned Costs: None. Recommendation: It is recommended that the University review policies and procedures in place to resolve reporting issues in a timely manner to facilitate compliance with Title IV regulations. Management Response: Each error was corrected within the system. Going forward, the reports submitted to NSLDS will be closely reviewed to ensure effective dates for student changes are appropriately reported.