FAC Explorer

Audit 299033

FY End
2023-06-30
Total Expended
$30.52M
Findings
2
Programs
14
Organization: Champlain College Incorporated (VT)
Year: 2023 Accepted: 2024-03-28
Auditor: Kpmg LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
386731 2023-001 Significant Deficiency - E
963173 2023-001 Significant Deficiency - E

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $24.07M Yes 1
84.063 Federal Pell Grant Program $3.93M Yes 0
84.038 Federal Perkins Loan Program $713,628 Yes 0
97.061 Centers for Homeland Security $438,570 - 0
84.007 Federal Supplemental Educational Opportunity Grants $307,038 Yes 0
84.033 Federal Work-Study Program $300,416 Yes 0
16.752 Economic High-Tech and Cyber Crime Prevention $273,628 - 0
16.753 Congressionally Recommended Awards $162,373 - 0
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $86,638 - 0
12.902 Information Security Grants $77,915 - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $73,153 - 0
12.903 Gencyber Grants Program $47,383 - 0
93.788 Opioid Str $17,861 - 0
66.481 Lake Champlain Basin Program $14,212 - 0

Contacts

Name Title Type
MQYDD4MY5HB5 April O'Dell Auditee
8028655734 Jayme Silva Auditor
No contacts on file

Notes to SEFA

Title: (2) Loan Balances Accounting Policies: (1) Summary of Significant Accounting Policies - The accompanying supplementary schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Champlain College Incorporated and is presented on the accrual basis of accounting. Because the Schedule presents only a selected portion of the operations of the College, it is not intended to and does not present the financial position, changes in net assets or cash flows of the College. 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, Costs Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the consolidated financial statements. De Minimis Rate Used: N Rate Explanation: (3) Indirect Cost Rate - For federal awards, the College has obtained predetermined facilities and administrative cost rates for fiscal year 2023, which have been reviewed and approved by the U.S. Department of Health and Human Services, the College’s federal oversight agency. The on-campus rate was 40.5% and the off-campus rate was 23.1% for the fiscal year ending June 30, 2023. Both rates use the Uniform Guidance’s Simplified Method and Modified Total Direct Cost as a base. The College has not elected to utlize the 10% deminimus indirect cost rate allowed under the Uniform Guidance. Congress did not renew the Federal Perkins Loan Program after September 2017 and the transition period permitting disbursements ended June 30, 2018. Therefore, no new loans have been awarded after September 2017 and the College will continue to service outstanding loans throughout the repayment period. For the year ended June 30, 2023, the College did not recover an administrative allowance under the Federal Perkins Loan Program. The loan receivable balance from students under the Federal Perkins Loan Program was $442,395 and $713,628 at June 30, 2023 and 2022. During the year ended June 30, 2023, $24,072,599 was advanced under the Federal Direct Student Loan Program. The College is responsible only for the performance of certain administrative duties and, accordingly, these loan balances are not included in the College's consolidated financial statements. It is not practical to determine the balances of loans outstanding from students of the College under this program as of June 30, 2023. The amount expended during 2023 was as follows: DL - Subidized $5,389,024, DL-Unsubsidized - $10,907,457, DL-Plus $7,776,118, Total $24,027,599

Finding Details

Finding 2023-001
Finding Reference Number: 2023-001 Student Financial Aid Cluster: Federal Direct Student Loans (Assistance Listing 84.268) Federal Award Year: 2023 U.S. Department of Education Compliance Requirement: Eligibility Type of Finding: Significant Deficiency and Noncompliance Prior Year Finding: N/A Statistically Valid Sample: No Criteria Under 34 CFR 685.203(d) and (e) aggregate loan limits for Direct Subsidized Loans and Direct Unsubidized Loans are established, outlining a borrowers maximum allowable outstanding loan debt, excluding capitalized interest. Additionally, per 2 CFR 200.303, non-federal entities must establish and maintain effective internal control over federal awards that provide reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition During our testwork over the eligibility process, we identified 1 out of 40 instances where the student was awarded a federal direct loan and the maximum total aggregate outstanding loan debt as a result of the award was exceeded by $2,500. Cause The cause of the condition found was related to a student that had a C Flag and a comment code related to loan limits. When the College cleared the C Flag, College did not verify the student’s outstanding loan balance through the National student Loan Data System (NSLDS) as required by the College’s internal policies and procedures. Instead, the College reviewed the student’s aggregate loan balance within Colleague, the College’s internal system. Possible Asserted Effect The effect of the condition found is that the student received a federal direct loan that exceeded the aggregate loan limit. Questioned Costs $2,500 Recommendation We recommend that the College review its existing internal controls surrounding the clearance of C-Flags to ensure that NSLDS is reviewed prior to clearing the C-Flag to ensure that students will not be awarded a direct loan that would result in the maximum aggregate limit being exceeded. View of Responsible Officials The College concurs. The College runs weekly reports from the Ellucian Colleague system to identify students with CFlags and comment codes for loan limits. While reviewing the report if a student has comment codes for loan limits, the staff member running the reports will research and assign the issue to the appropriate Financial Aid Assistant Director to adjust the loan accordingly. For the student identified, the loan limit was calculated incorrectly in the Colleague system and the student was awarded a federal direct loan that exceeded their maximum total aggregate outstanding loan debt by $2,500. It is our belief this was not an issue of identifying the CFLAG, it was human error with reduction of loans. To correct the issue this student was awarded institutional aid to cover the amount loans were reduced. To confirm that no other student’s were impacted by a similar issue, a CFLAG full audit report was run for 2023. The report was reviewed to determine if there were any other students that had an aggregate loan limit issues. It was confirmed that this student was the only issue.
Finding 2023-001
Finding Reference Number: 2023-001 Student Financial Aid Cluster: Federal Direct Student Loans (Assistance Listing 84.268) Federal Award Year: 2023 U.S. Department of Education Compliance Requirement: Eligibility Type of Finding: Significant Deficiency and Noncompliance Prior Year Finding: N/A Statistically Valid Sample: No Criteria Under 34 CFR 685.203(d) and (e) aggregate loan limits for Direct Subsidized Loans and Direct Unsubidized Loans are established, outlining a borrowers maximum allowable outstanding loan debt, excluding capitalized interest. Additionally, per 2 CFR 200.303, non-federal entities must establish and maintain effective internal control over federal awards that provide reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition During our testwork over the eligibility process, we identified 1 out of 40 instances where the student was awarded a federal direct loan and the maximum total aggregate outstanding loan debt as a result of the award was exceeded by $2,500. Cause The cause of the condition found was related to a student that had a C Flag and a comment code related to loan limits. When the College cleared the C Flag, College did not verify the student’s outstanding loan balance through the National student Loan Data System (NSLDS) as required by the College’s internal policies and procedures. Instead, the College reviewed the student’s aggregate loan balance within Colleague, the College’s internal system. Possible Asserted Effect The effect of the condition found is that the student received a federal direct loan that exceeded the aggregate loan limit. Questioned Costs $2,500 Recommendation We recommend that the College review its existing internal controls surrounding the clearance of C-Flags to ensure that NSLDS is reviewed prior to clearing the C-Flag to ensure that students will not be awarded a direct loan that would result in the maximum aggregate limit being exceeded. View of Responsible Officials The College concurs. The College runs weekly reports from the Ellucian Colleague system to identify students with CFlags and comment codes for loan limits. While reviewing the report if a student has comment codes for loan limits, the staff member running the reports will research and assign the issue to the appropriate Financial Aid Assistant Director to adjust the loan accordingly. For the student identified, the loan limit was calculated incorrectly in the Colleague system and the student was awarded a federal direct loan that exceeded their maximum total aggregate outstanding loan debt by $2,500. It is our belief this was not an issue of identifying the CFLAG, it was human error with reduction of loans. To correct the issue this student was awarded institutional aid to cover the amount loans were reduced. To confirm that no other student’s were impacted by a similar issue, a CFLAG full audit report was run for 2023. The report was reviewed to determine if there were any other students that had an aggregate loan limit issues. It was confirmed that this student was the only issue.