FAC Explorer

Audit 298066

FY End
2023-06-30
Total Expended
$10.73M
Findings
6
Programs
10
Organization: Universidad Central De Bayamon INC (PR)
Year: 2023 Accepted: 2024-03-26
Auditor: Galindez LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
385011 2023-001 - - N
385012 2023-002 - - N
385013 2023-002 - - N
961453 2023-001 - - N
961454 2023-002 - - N
961455 2023-002 - - N

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $4.43M Yes 0
84.063 Federal Pell Grant Program $3.19M Yes 2
84.268 Federal Direct Student Loans $1.20M Yes 1
84.031 Higher Education_institutional Aid $583,813 Yes 0
84.007 Federal Supplemental Educational Opportunity Grants $511,619 Yes 0
84.033 Federal Work-Study Program $384,730 Yes 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $318,180 Yes 0
84.938 Disaster Recovery Assistance for Education $73,460 Yes 0
84.335 Child Care Access Means Parents in School $29,257 Yes 0
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $3,776 Yes 0

Contacts

Name Title Type
JFA4KNMF5AM3 Ismael A Velez De La Rosa Auditee
7877863030 Rafael Nieves Auditor
No contacts on file

Notes to SEFA

Title: Note 3 - Assistance Listing Number Accounting Policies: Basis of Presentation The accompanying supplementary Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of Universidad Central de Bayamon, Inc. (the University) and is presented on the accrual basis of accounting. The information in the Schedule is prepared 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 (the Uniform Guidance). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of the financial statements of the University. 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, and cash flows of the University. Funds received for Student Financial Assistance Program (principally Pell Grant) that are awarded to students are excluded from revenue and expenses in the financial statements of the University. These grants are applied to the students’ tuition and fees, and any excess is paid to the students. Summary of Significant Accounting Policies a. The Schedule is prepared from the University’s accounting records and is not intended to present its financial position or the results of its operations. b. Expenditures are recognized following the cost principle contained in the Uniform Guidance, wherein certain types of expenditures may or may not be available or may be limited as to reimbursement. c. The financial transactions are recorded by the University in accordance with the terms and conditions of the grants, which are consistent with accounting principles generally accepted in the United States of America. d. Expenditures are recognized in the accounting period in which the liability is incurred, if measurable or when actually paid, whichever occurs first. e. The University has elected not to use the 10-percent de minims indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The University has elected not to use the 10-percent de minims indirect cost rate as allowed under the Uniform Guidance. The assistance listing numbers included in the Schedule are determined based in the program name, review of grant contract information and OMB's Assistance Listing Number (ALN).
Title: Note 4 - Major Federal Programs Accounting Policies: Basis of Presentation The accompanying supplementary Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of Universidad Central de Bayamon, Inc. (the University) and is presented on the accrual basis of accounting. The information in the Schedule is prepared 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 (the Uniform Guidance). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of the financial statements of the University. 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, and cash flows of the University. Funds received for Student Financial Assistance Program (principally Pell Grant) that are awarded to students are excluded from revenue and expenses in the financial statements of the University. These grants are applied to the students’ tuition and fees, and any excess is paid to the students. Summary of Significant Accounting Policies a. The Schedule is prepared from the University’s accounting records and is not intended to present its financial position or the results of its operations. b. Expenditures are recognized following the cost principle contained in the Uniform Guidance, wherein certain types of expenditures may or may not be available or may be limited as to reimbursement. c. The financial transactions are recorded by the University in accordance with the terms and conditions of the grants, which are consistent with accounting principles generally accepted in the United States of America. d. Expenditures are recognized in the accounting period in which the liability is incurred, if measurable or when actually paid, whichever occurs first. e. The University has elected not to use the 10-percent de minims indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The University has elected not to use the 10-percent de minims indirect cost rate as allowed under the Uniform Guidance. Major programs are identified in the Summary of Auditors’ Results Section in the Schedule of Findings and Questioned Costs. Federal programs are presented by federal agency.
Title: Note 5 - Accounting Policies for Loans and Loan Guarantees Accounting Policies: Basis of Presentation The accompanying supplementary Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of Universidad Central de Bayamon, Inc. (the University) and is presented on the accrual basis of accounting. The information in the Schedule is prepared 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 (the Uniform Guidance). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of the financial statements of the University. 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, and cash flows of the University. Funds received for Student Financial Assistance Program (principally Pell Grant) that are awarded to students are excluded from revenue and expenses in the financial statements of the University. These grants are applied to the students’ tuition and fees, and any excess is paid to the students. Summary of Significant Accounting Policies a. The Schedule is prepared from the University’s accounting records and is not intended to present its financial position or the results of its operations. b. Expenditures are recognized following the cost principle contained in the Uniform Guidance, wherein certain types of expenditures may or may not be available or may be limited as to reimbursement. c. The financial transactions are recorded by the University in accordance with the terms and conditions of the grants, which are consistent with accounting principles generally accepted in the United States of America. d. Expenditures are recognized in the accounting period in which the liability is incurred, if measurable or when actually paid, whichever occurs first. e. The University has elected not to use the 10-percent de minims indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The University has elected not to use the 10-percent de minims indirect cost rate as allowed under the Uniform Guidance. The University participates in the Federal Direct Student Loans (Direct Loans) Program (ALN 84.268) of the U.S. Department of Education (USDE) since July 1, 2010. Loans made through the Direct Loans program include subsidized and unsubsidized Federal Stafford Loans and Federal PLUS loans. Although the University is not the recipient of the funds, such program is considered a component of the student financial assistance program at the University. Under the Direct Loans program, the University is responsible only for certain administrative duties, accordingly, the disbursements under the program and the outstanding loan balances are excluded from the financial statements of the University. New loans processed for students during the year ended June 30, 2023 were $1,204,258.
Title: Note 6 - Endowment Grant Programs Accounting Policies: Basis of Presentation The accompanying supplementary Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of Universidad Central de Bayamon, Inc. (the University) and is presented on the accrual basis of accounting. The information in the Schedule is prepared 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 (the Uniform Guidance). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of the financial statements of the University. 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, and cash flows of the University. Funds received for Student Financial Assistance Program (principally Pell Grant) that are awarded to students are excluded from revenue and expenses in the financial statements of the University. These grants are applied to the students’ tuition and fees, and any excess is paid to the students. Summary of Significant Accounting Policies a. The Schedule is prepared from the University’s accounting records and is not intended to present its financial position or the results of its operations. b. Expenditures are recognized following the cost principle contained in the Uniform Guidance, wherein certain types of expenditures may or may not be available or may be limited as to reimbursement. c. The financial transactions are recorded by the University in accordance with the terms and conditions of the grants, which are consistent with accounting principles generally accepted in the United States of America. d. Expenditures are recognized in the accounting period in which the liability is incurred, if measurable or when actually paid, whichever occurs first. e. The University has elected not to use the 10-percent de minims indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The University has elected not to use the 10-percent de minims indirect cost rate as allowed under the Uniform Guidance. The University received in prior years grants from the Higher Education Institutional Aid – Strengthening Institutions Program, the Title III Hispanic-Serving Institutions (HIS) STEM and Articulations Programs, and the Title V Developing Hispanic- Serving Institutions (HIS), respectively. The grants require 100% matching contributions from the institutional fund and the income earned on the amount. The University must invest and shall not expend the Endowment Fund Corpus for a period of twenty (20) years. Afterwards, the Endowment Fund Corpus can be used for any educational purpose. During the grant period, the University may not use more than fifty percent (50%) of the aggregate income earned. Therefore, the endowment fund includes both donor-restricted funds and unrestricted funds designated by the Board of Trustees. At the time these grants expire, the outstanding balances of these endowment funds are no longer temporarily restricted and become part of the University’s unrestricted net assets. Balance on the remaining funds, including accrued interest and dividends since inception, amounted to $1,391,603 at June 30, 2023. Net gain for the year ended June 30, 2023 amounted to $77,947, which represents 100% of investment gain generated by the above-mentioned grants. Investment income (loss), as defined above, includes interest, dividends and realized and unrealized gains/losses in investment securities, net of investment expenses.

Finding Details

Finding 2023-001
Finding No. 2023–001 – Special Tests and Provisions – Disbursement to or on behalf students Title IV, HEA credit balances Federal Program ALN 84.063, Federal Pell Grant Program (PELL), Student Financial Assistance Programs Name of Federal Agency U.S. Department of Education (USDE) Category Internal Control/Compliance Compliance Requirement Special Tests and Provisions Criteria According to the 34 CFR 668.164(h)(2)(i) A title IV, a HEA credit balance must be paid directly to the student or parent as soon as possible, but no later than fourteen (14) days after the balance occurred, if the credit balance occurred after the first day of class of a payment period. Condition During our examination, we noted one (1) instance, which based on the regulation mentioned above, the credit balance was not paid to the student in the required time frame.Cause The student credit balance was not paid in the required time frame as a result of a processing delay. Effect As a result of this condition, the USDE may issue warnings and/or impose penalties to the University. Context Of the 1,426 participants of Student Financial Aid Program, we examined forty (40) participants of PELL and in one (1) case credit balance refund was performed late. The composition of the audit samples for the Pell grant and Direct Loans programs and the population from which eligibility samples were as follows:Identification of a repeat finding This is not a repeat finding from the immediate previous audit. Questioned cost None Recommendation The management of UCB should reinforce its internal control and procedures to ensure the return of credit balances to the students in the required time frame. Views of Responsible Officials of the Auditee and Planned Corrective Actions Management of the University agrees with this finding. Please refer to the corrective action plan on page 54.
Finding 2023-002
Finding No. 2023–002 – Special Tests and Provisions – Enrollment Reporting Federal Program Name Federal Pell Grant Program (PELL), ALN 84.063 Federal Direct Student Loan Program (DL) ALN 84.268 Name of Federal Agency U.S. Department of Education Pass-through Entity N/A Criteria The National Student Loan Data System (NSLDS) is the U.S. Department of Education’s central database for federal student aid disbursed under Title IV of the Higher Education Act of 1965 (HEA), as amended. Among other things, NSLDS monitors the programs of attendance and the enrollment status of Title IV aid recipients. The institution determines how often it receives the Enrollment Reporting roster file with the default set at a minimum of every 60 days. Once received, the institution must update for changes in student status, report the date the enrollment status was effective, enter the new anticipated completion date, and submit the changes electronically through the batch method or the NSLDS website, as stated in 34 CFR 690.83 (b) (2) for Federal Pell Grant Program and 34 CFR section 685.309 for Federal Direct Student Loan Program. A student’s enrollment status determines eligibility for in-school status, deferment, and grace periods, as well as for the payment of interest subsidies to FFEL Program loan holders by USDE. Enrollment Reporting in a timely and accurate manner is critical for effective management of the programs. Enrollment information must be reported within 30 days whenever attendance changes for students, unless a roster will be submitted within 60 days. These changes include reductions or increases in attendance levels, withdrawals, graduations, or approved leaves-of- absence. Condition During our examination of the enrollment reporting test, from twenty-five (25) cases of students examined, we found that in two (2) cases, the University did not report to the National Student Loan Data System (NSLDS) the change in status of the students within the required 60 days’ period. Cause The registrar reported the students graduated status within the required time frame to the National Student Clearinghouse (NSC), but the NSC exceeded the timeframe agreed with the University to report the student status changes to the NSDLS. Effect As a result of this condition, the USDE was prevented the use of accurate reporting data, which is critical for the effective administration of the Direct Loan Program and for USDE budgetary policy analysis. Questioned Cost None Context Of the 235 status changes for 2023, we selected 25 students for testing and noted 2 instances in which the University did not comply with the enrollment reporting requirements. Identification of a Repeat Finding This is not a repeat finding from the immediate previous audit. Recommendation Management should reassess the timeframe in which the University submits the information to the NSC and reinforce its monitoring of NSC to ensure they comply with the agreed upon reporting timeframe. The University should enhance both electronic and manual procedures to ensure enrollment status changes are timely and accurately reported to NSDLS. Views of Responsible Officials and Planned Corrective Actions The University management agrees with this finding. Please refer to the corrective action plan on page 54.
Finding 2023-002
Finding No. 2023–002 – Special Tests and Provisions – Enrollment Reporting Federal Program Name Federal Pell Grant Program (PELL), ALN 84.063 Federal Direct Student Loan Program (DL) ALN 84.268 Name of Federal Agency U.S. Department of Education Pass-through Entity N/A Criteria The National Student Loan Data System (NSLDS) is the U.S. Department of Education’s central database for federal student aid disbursed under Title IV of the Higher Education Act of 1965 (HEA), as amended. Among other things, NSLDS monitors the programs of attendance and the enrollment status of Title IV aid recipients. The institution determines how often it receives the Enrollment Reporting roster file with the default set at a minimum of every 60 days. Once received, the institution must update for changes in student status, report the date the enrollment status was effective, enter the new anticipated completion date, and submit the changes electronically through the batch method or the NSLDS website, as stated in 34 CFR 690.83 (b) (2) for Federal Pell Grant Program and 34 CFR section 685.309 for Federal Direct Student Loan Program. A student’s enrollment status determines eligibility for in-school status, deferment, and grace periods, as well as for the payment of interest subsidies to FFEL Program loan holders by USDE. Enrollment Reporting in a timely and accurate manner is critical for effective management of the programs. Enrollment information must be reported within 30 days whenever attendance changes for students, unless a roster will be submitted within 60 days. These changes include reductions or increases in attendance levels, withdrawals, graduations, or approved leaves-of- absence. Condition During our examination of the enrollment reporting test, from twenty-five (25) cases of students examined, we found that in two (2) cases, the University did not report to the National Student Loan Data System (NSLDS) the change in status of the students within the required 60 days’ period. Cause The registrar reported the students graduated status within the required time frame to the National Student Clearinghouse (NSC), but the NSC exceeded the timeframe agreed with the University to report the student status changes to the NSDLS. Effect As a result of this condition, the USDE was prevented the use of accurate reporting data, which is critical for the effective administration of the Direct Loan Program and for USDE budgetary policy analysis. Questioned Cost None Context Of the 235 status changes for 2023, we selected 25 students for testing and noted 2 instances in which the University did not comply with the enrollment reporting requirements. Identification of a Repeat Finding This is not a repeat finding from the immediate previous audit. Recommendation Management should reassess the timeframe in which the University submits the information to the NSC and reinforce its monitoring of NSC to ensure they comply with the agreed upon reporting timeframe. The University should enhance both electronic and manual procedures to ensure enrollment status changes are timely and accurately reported to NSDLS. Views of Responsible Officials and Planned Corrective Actions The University management agrees with this finding. Please refer to the corrective action plan on page 54.
Finding 2023-001
Finding No. 2023–001 – Special Tests and Provisions – Disbursement to or on behalf students Title IV, HEA credit balances Federal Program ALN 84.063, Federal Pell Grant Program (PELL), Student Financial Assistance Programs Name of Federal Agency U.S. Department of Education (USDE) Category Internal Control/Compliance Compliance Requirement Special Tests and Provisions Criteria According to the 34 CFR 668.164(h)(2)(i) A title IV, a HEA credit balance must be paid directly to the student or parent as soon as possible, but no later than fourteen (14) days after the balance occurred, if the credit balance occurred after the first day of class of a payment period. Condition During our examination, we noted one (1) instance, which based on the regulation mentioned above, the credit balance was not paid to the student in the required time frame.Cause The student credit balance was not paid in the required time frame as a result of a processing delay. Effect As a result of this condition, the USDE may issue warnings and/or impose penalties to the University. Context Of the 1,426 participants of Student Financial Aid Program, we examined forty (40) participants of PELL and in one (1) case credit balance refund was performed late. The composition of the audit samples for the Pell grant and Direct Loans programs and the population from which eligibility samples were as follows:Identification of a repeat finding This is not a repeat finding from the immediate previous audit. Questioned cost None Recommendation The management of UCB should reinforce its internal control and procedures to ensure the return of credit balances to the students in the required time frame. Views of Responsible Officials of the Auditee and Planned Corrective Actions Management of the University agrees with this finding. Please refer to the corrective action plan on page 54.
Finding 2023-002
Finding No. 2023–002 – Special Tests and Provisions – Enrollment Reporting Federal Program Name Federal Pell Grant Program (PELL), ALN 84.063 Federal Direct Student Loan Program (DL) ALN 84.268 Name of Federal Agency U.S. Department of Education Pass-through Entity N/A Criteria The National Student Loan Data System (NSLDS) is the U.S. Department of Education’s central database for federal student aid disbursed under Title IV of the Higher Education Act of 1965 (HEA), as amended. Among other things, NSLDS monitors the programs of attendance and the enrollment status of Title IV aid recipients. The institution determines how often it receives the Enrollment Reporting roster file with the default set at a minimum of every 60 days. Once received, the institution must update for changes in student status, report the date the enrollment status was effective, enter the new anticipated completion date, and submit the changes electronically through the batch method or the NSLDS website, as stated in 34 CFR 690.83 (b) (2) for Federal Pell Grant Program and 34 CFR section 685.309 for Federal Direct Student Loan Program. A student’s enrollment status determines eligibility for in-school status, deferment, and grace periods, as well as for the payment of interest subsidies to FFEL Program loan holders by USDE. Enrollment Reporting in a timely and accurate manner is critical for effective management of the programs. Enrollment information must be reported within 30 days whenever attendance changes for students, unless a roster will be submitted within 60 days. These changes include reductions or increases in attendance levels, withdrawals, graduations, or approved leaves-of- absence. Condition During our examination of the enrollment reporting test, from twenty-five (25) cases of students examined, we found that in two (2) cases, the University did not report to the National Student Loan Data System (NSLDS) the change in status of the students within the required 60 days’ period. Cause The registrar reported the students graduated status within the required time frame to the National Student Clearinghouse (NSC), but the NSC exceeded the timeframe agreed with the University to report the student status changes to the NSDLS. Effect As a result of this condition, the USDE was prevented the use of accurate reporting data, which is critical for the effective administration of the Direct Loan Program and for USDE budgetary policy analysis. Questioned Cost None Context Of the 235 status changes for 2023, we selected 25 students for testing and noted 2 instances in which the University did not comply with the enrollment reporting requirements. Identification of a Repeat Finding This is not a repeat finding from the immediate previous audit. Recommendation Management should reassess the timeframe in which the University submits the information to the NSC and reinforce its monitoring of NSC to ensure they comply with the agreed upon reporting timeframe. The University should enhance both electronic and manual procedures to ensure enrollment status changes are timely and accurately reported to NSDLS. Views of Responsible Officials and Planned Corrective Actions The University management agrees with this finding. Please refer to the corrective action plan on page 54.
Finding 2023-002
Finding No. 2023–002 – Special Tests and Provisions – Enrollment Reporting Federal Program Name Federal Pell Grant Program (PELL), ALN 84.063 Federal Direct Student Loan Program (DL) ALN 84.268 Name of Federal Agency U.S. Department of Education Pass-through Entity N/A Criteria The National Student Loan Data System (NSLDS) is the U.S. Department of Education’s central database for federal student aid disbursed under Title IV of the Higher Education Act of 1965 (HEA), as amended. Among other things, NSLDS monitors the programs of attendance and the enrollment status of Title IV aid recipients. The institution determines how often it receives the Enrollment Reporting roster file with the default set at a minimum of every 60 days. Once received, the institution must update for changes in student status, report the date the enrollment status was effective, enter the new anticipated completion date, and submit the changes electronically through the batch method or the NSLDS website, as stated in 34 CFR 690.83 (b) (2) for Federal Pell Grant Program and 34 CFR section 685.309 for Federal Direct Student Loan Program. A student’s enrollment status determines eligibility for in-school status, deferment, and grace periods, as well as for the payment of interest subsidies to FFEL Program loan holders by USDE. Enrollment Reporting in a timely and accurate manner is critical for effective management of the programs. Enrollment information must be reported within 30 days whenever attendance changes for students, unless a roster will be submitted within 60 days. These changes include reductions or increases in attendance levels, withdrawals, graduations, or approved leaves-of- absence. Condition During our examination of the enrollment reporting test, from twenty-five (25) cases of students examined, we found that in two (2) cases, the University did not report to the National Student Loan Data System (NSLDS) the change in status of the students within the required 60 days’ period. Cause The registrar reported the students graduated status within the required time frame to the National Student Clearinghouse (NSC), but the NSC exceeded the timeframe agreed with the University to report the student status changes to the NSDLS. Effect As a result of this condition, the USDE was prevented the use of accurate reporting data, which is critical for the effective administration of the Direct Loan Program and for USDE budgetary policy analysis. Questioned Cost None Context Of the 235 status changes for 2023, we selected 25 students for testing and noted 2 instances in which the University did not comply with the enrollment reporting requirements. Identification of a Repeat Finding This is not a repeat finding from the immediate previous audit. Recommendation Management should reassess the timeframe in which the University submits the information to the NSC and reinforce its monitoring of NSC to ensure they comply with the agreed upon reporting timeframe. The University should enhance both electronic and manual procedures to ensure enrollment status changes are timely and accurately reported to NSDLS. Views of Responsible Officials and Planned Corrective Actions The University management agrees with this finding. Please refer to the corrective action plan on page 54.