FAC Explorer

Audit 299379

FY End
2023-06-30
Total Expended
$44.78M
Findings
12
Programs
5
Organization: Lindenwood University (MO)
Year: 2023 Accepted: 2024-03-28
Auditor: Rubinbrown

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
386998 2023-001 Significant Deficiency - E
386999 2023-002 Significant Deficiency - N
387000 2023-002 Significant Deficiency - N
387001 2023-003 Significant Deficiency - N
387002 2023-003 Significant Deficiency - N
387003 2023-004 Significant Deficiency - N
963440 2023-001 Significant Deficiency - E
963441 2023-002 Significant Deficiency - N
963442 2023-002 Significant Deficiency - N
963443 2023-003 Significant Deficiency - N
963444 2023-003 Significant Deficiency - N
963445 2023-004 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $37.19M Yes 3
84.063 Federal Pell Grant Program $6.96M Yes 3
84.033 Federal Work-Study Program $378,776 Yes 0
84.007 Federal Supplemental Educational Opportunity Grants $243,641 Yes 0
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $10,373 Yes 0

Contacts

Name Title Type
R5NLU8N9K7A5 John Plunkett Auditee
6369494970 Brent Stevens Auditor
No contacts on file

Notes to SEFA

Title: 1 Accounting Policies: This schedule includes the federal awards activity of Lindenwood University, LLC (d/b/a/ Lindenwood University), which is a wholly-owned subsidiary of the Lindenwood Education System (a Missouri Nonprofit Corporation). The schedule is presented on the accrual basis of accounting. The information in this 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. 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. This schedule includes the federal awards activity of Lindenwood University, LLC (d/b/a/ Lindenwood University), which is a wholly-owned subsidiary of the Lindenwood University Education System (a Missouri Nonprofit Corporation). The schedule is presented on the accrual basis of accounting. The information in this 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: 2 Accounting Policies: This schedule includes the federal awards activity of Lindenwood University, LLC (d/b/a/ Lindenwood University), which is a wholly-owned subsidiary of the Lindenwood Education System (a Missouri Nonprofit Corporation). The schedule is presented on the accrual basis of accounting. The information in this 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. 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 provided no federal awards to subrecipients for the year ended June 30, 2023.
Title: 3 Accounting Policies: This schedule includes the federal awards activity of Lindenwood University, LLC (d/b/a/ Lindenwood University), which is a wholly-owned subsidiary of the Lindenwood Education System (a Missouri Nonprofit Corporation). The schedule is presented on the accrual basis of accounting. The information in this 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. 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-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: 4 Accounting Policies: This schedule includes the federal awards activity of Lindenwood University, LLC (d/b/a/ Lindenwood University), which is a wholly-owned subsidiary of the Lindenwood Education System (a Missouri Nonprofit Corporation). The schedule is presented on the accrual basis of accounting. The information in this 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. 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 Uniform Guidance report only covers the activities of Lindenwood University (OPEID #00248000). Lindenwood University System acquired Dorsey College and Dorsey School of Beauty during the fiscal year ended June 30, 2023 (OPEID #00469200 and 02209200, respectively). Management of Lindenwood University System has determined, based on guidance from the U.S. Department of Education, that the Federal Grant Compliance activities of Dorsey College and Dorsey School of Beauty have been reported on separately, and as such, are not included in this Uniform Guidance report. Currently, the U.S. Department of Education still considers Dorsey College and Dorsey School of Beauty to be for-profit schools in regard to the Student Federal Financial Aid programs and, as such, Dorsey College and Dorsey School of Beauty file separate compliance audits and 90/10 revenue percentage calculations under the Guide for Financial Statement Audits of Proprietary Schools and for Compliance Attestation Examination Engagements of Proprietary Schools and Third-Party Servicers Administering Title IV Programs.

Finding Details

Finding 2023-001
Finding 2023-001 – Significant Deficiency: Eligibility – Compliance and Control Finding ALN 84.063 – Federal Pell Grant Program – Student Financial Aid Cluster Federal Agency: Department of Education Pass-Through Entity: None Criteria Or Specific Requirement: Per the Student Financial Aid Handbook, Volume 3, the University must follow the eligibility guidelines and limits set by the Department of Education for awarding Pell Grants. Condition: The University did not properly award students in accordance with the guidelines set by the Department of Education. Cause: Controls over compliance put in place by management were not operating effectively as it relates to awarding and disbursement of Title IV funds due to the implementation of a new student information system in the current year. Effect: The University’s controls did not prevent the errors noted during the awarding and disbursement of Title IV funds. Questioned Costs: Known and likely questioned costs did not exceed $25,000. Context: Based on a sample of 40 students, the University incorrectly awarded Pell grants for 2 students in the amount of $1,105. The sample was non-statistical from a listing of students receiving financial aid. Identification As A Repeat Finding: Not a repeat finding. Recommendation: We recommend that management review its processes and controls surrounding this compliance requirement to ensure that the control is appropriate and operating effectively to support that the University is in compliance with the requirements of its federal program. Views Of Responsible Officials: The University agrees with the finding. The University is implementing a new student information system, which includes controls related to accurately awarding students.
Finding 2023-002
Finding 2023-002 - Significant Deficiency - Special Tests And Provisions - Return Of Title IV Funds - Compliance and Control Finding ALN 84.063 - Federal Pell Grant Program and 84.268 - Federal Direct Student Loan Program - Student Financial Aid Cluster Federal Agency: Department of Education Pass-Through Entity: None Criteria Or Specific Requirement: When a recipient of Title IV grant or loan assistance withdraws from the University during a payment period or period of enrollment in which the recipient began attendance, the University must determine the amount of Title IV aid earned by the student as of the student’s withdrawal date. Any amount unearned must be returned to the Title IV programs within 45 days. Condition: For a sample of 25 students, it was noted for three students tested that the Title IV funds were returned after the 45-day required timeframe. Cause: Controls over compliance put in place by management were not operating effectively as it relates to return of Title IV funds. Effect: The University’s controls did not prevent the errors noted during the return of Title IV funds. Questioned Costs: Known and likely questioned costs did not exceed $25,000. Context: During the testing performed, it was noted for three students, the Title IV funds were returned after the 45-day required timeframe. The sample was non-statistical from a listing of students receiving financial aid. Identification As A Repeat Finding: Not a repeat finding. Recommendation: We recommend that management review its processes and controls surrounding this compliance requirement to ensure that the control is appropriate and operating effectively to support that the University is in compliance with the requirements of its federal program. Views Of Responsible Officials: The University agrees with the finding. The University is implementing a new student information system, which includes controls related to accurately returning Title IV funds.
Finding 2023-002
Finding 2023-002 - Significant Deficiency - Special Tests And Provisions - Return Of Title IV Funds - Compliance and Control Finding ALN 84.063 - Federal Pell Grant Program and 84.268 - Federal Direct Student Loan Program - Student Financial Aid Cluster Federal Agency: Department of Education Pass-Through Entity: None Criteria Or Specific Requirement: When a recipient of Title IV grant or loan assistance withdraws from the University during a payment period or period of enrollment in which the recipient began attendance, the University must determine the amount of Title IV aid earned by the student as of the student’s withdrawal date. Any amount unearned must be returned to the Title IV programs within 45 days. Condition: For a sample of 25 students, it was noted for three students tested that the Title IV funds were returned after the 45-day required timeframe. Cause: Controls over compliance put in place by management were not operating effectively as it relates to return of Title IV funds. Effect: The University’s controls did not prevent the errors noted during the return of Title IV funds. Questioned Costs: Known and likely questioned costs did not exceed $25,000. Context: During the testing performed, it was noted for three students, the Title IV funds were returned after the 45-day required timeframe. The sample was non-statistical from a listing of students receiving financial aid. Identification As A Repeat Finding: Not a repeat finding. Recommendation: We recommend that management review its processes and controls surrounding this compliance requirement to ensure that the control is appropriate and operating effectively to support that the University is in compliance with the requirements of its federal program. Views Of Responsible Officials: The University agrees with the finding. The University is implementing a new student information system, which includes controls related to accurately returning Title IV funds.
Finding 2023-003
Finding 2023-003 – Significant Deficiency: Special Tests and Provisions - Enrollment Reporting – Compliance and Control Finding ALN 84.063 - Federal Pell Grant Program and 84.268 - Federal Direct Student Loan Program - Student Financial Aid Cluster Federal Agency: Department of Education Pass-Through Entity: None Criteria Or Specific Requirement: The University is required to report changes to a student’s enrollment status and the date the enrollment status was effective and submit the changes to the National Student Loan Data System (NSLDS). The status changes must be reported at a minimum of every 60 days. Condition: Based on a sample of 22 students tested, the enrollment status of 17 students was not reported within the 60-day timeframe. Cause: Controls over compliance put in place by management related to the implementation of a new student information system in the current year were not operating effectively as it relates to enrollment reporting. Effect: The University’s was not in compliance with the enrollment reporting guidelines. In addition, the internal controls did not prevent instances of noncompliance from occurring. Questioned Costs: None. Context: Based on a sample of 22 students tested, the enrollment status of 17 students was not reported within the 60-day timeframe. The sample was non-statistical from a listing of students receiving financial aid. Identification As A Repeat Finding: Not a repeat finding. Recommendation: We recommend that management review its processes and controls surrounding this compliance requirement to ensure that the control is appropriate and operating effectively to support that the University is in compliance with the requirements of its federal program. Views Of Responsible Officials: The University agrees with the finding. The University is implementing a new student information system, which includes controls related to completing enrollment reporting in a timely and accurate manner.
Finding 2023-003
Finding 2023-003 – Significant Deficiency: Special Tests and Provisions - Enrollment Reporting – Compliance and Control Finding ALN 84.063 - Federal Pell Grant Program and 84.268 - Federal Direct Student Loan Program - Student Financial Aid Cluster Federal Agency: Department of Education Pass-Through Entity: None Criteria Or Specific Requirement: The University is required to report changes to a student’s enrollment status and the date the enrollment status was effective and submit the changes to the National Student Loan Data System (NSLDS). The status changes must be reported at a minimum of every 60 days. Condition: Based on a sample of 22 students tested, the enrollment status of 17 students was not reported within the 60-day timeframe. Cause: Controls over compliance put in place by management related to the implementation of a new student information system in the current year were not operating effectively as it relates to enrollment reporting. Effect: The University’s was not in compliance with the enrollment reporting guidelines. In addition, the internal controls did not prevent instances of noncompliance from occurring. Questioned Costs: None. Context: Based on a sample of 22 students tested, the enrollment status of 17 students was not reported within the 60-day timeframe. The sample was non-statistical from a listing of students receiving financial aid. Identification As A Repeat Finding: Not a repeat finding. Recommendation: We recommend that management review its processes and controls surrounding this compliance requirement to ensure that the control is appropriate and operating effectively to support that the University is in compliance with the requirements of its federal program. Views Of Responsible Officials: The University agrees with the finding. The University is implementing a new student information system, which includes controls related to completing enrollment reporting in a timely and accurate manner.
Finding 2023-004
Finding 2023-004 - Significant Deficiency: Special Tests and Provisions - Enrollment Reporting - Compliance and Control Finding ALN 84.268 - Federal Direct Student Loan Program - Student Financial Aid Cluster Federal Agency: Department of Education Pass-Through Entity: None Criteria Or Specific Requirement: The University is required to complete exit counseling for a student that was a recipient of a Direct Subsidized Loan, Direct Unsubsidized Loan, or student Direct PLUS Loan who is graduating, leaving school, or dropping below half-time enrollment. Condition: Based on a sample of 22 students tested, exist interviews for 5 students were not properly completed or documented. Cause: Controls over compliance put in place by management related to the implementation of a new student information system in the current year were not operating effectively as it relates to enrollment reporting, causing delays and oversights in the existing processes to ensure exit counseling is performed. Effect: The University’s was not in compliance with the enrollment reporting guidelines. In addition, the internal controls did not prevent instances of noncompliance from occurring. Questioned Costs: None. Context: Based on a sample of 22 students tested, 5 students were not properly notified of their requirement to complete loan repayment counseling. The sample was non-statistical from a listing of students receiving financial aid. Identification As A Repeat Finding: Not a repeat finding. Recommendation: We recommend that management review its processes and controls surrounding this compliance requirement to ensure that the control is appropriate and operating effectively to support that the University is in compliance with the requirements of its federal program. Views Of Responsible Officials: The University agrees with the finding. The University is implementing a new student information system, which includes controls related to completing enrollment reporting in a timely and accurate manner.
Finding 2023-001
Finding 2023-001 – Significant Deficiency: Eligibility – Compliance and Control Finding ALN 84.063 – Federal Pell Grant Program – Student Financial Aid Cluster Federal Agency: Department of Education Pass-Through Entity: None Criteria Or Specific Requirement: Per the Student Financial Aid Handbook, Volume 3, the University must follow the eligibility guidelines and limits set by the Department of Education for awarding Pell Grants. Condition: The University did not properly award students in accordance with the guidelines set by the Department of Education. Cause: Controls over compliance put in place by management were not operating effectively as it relates to awarding and disbursement of Title IV funds due to the implementation of a new student information system in the current year. Effect: The University’s controls did not prevent the errors noted during the awarding and disbursement of Title IV funds. Questioned Costs: Known and likely questioned costs did not exceed $25,000. Context: Based on a sample of 40 students, the University incorrectly awarded Pell grants for 2 students in the amount of $1,105. The sample was non-statistical from a listing of students receiving financial aid. Identification As A Repeat Finding: Not a repeat finding. Recommendation: We recommend that management review its processes and controls surrounding this compliance requirement to ensure that the control is appropriate and operating effectively to support that the University is in compliance with the requirements of its federal program. Views Of Responsible Officials: The University agrees with the finding. The University is implementing a new student information system, which includes controls related to accurately awarding students.
Finding 2023-002
Finding 2023-002 - Significant Deficiency - Special Tests And Provisions - Return Of Title IV Funds - Compliance and Control Finding ALN 84.063 - Federal Pell Grant Program and 84.268 - Federal Direct Student Loan Program - Student Financial Aid Cluster Federal Agency: Department of Education Pass-Through Entity: None Criteria Or Specific Requirement: When a recipient of Title IV grant or loan assistance withdraws from the University during a payment period or period of enrollment in which the recipient began attendance, the University must determine the amount of Title IV aid earned by the student as of the student’s withdrawal date. Any amount unearned must be returned to the Title IV programs within 45 days. Condition: For a sample of 25 students, it was noted for three students tested that the Title IV funds were returned after the 45-day required timeframe. Cause: Controls over compliance put in place by management were not operating effectively as it relates to return of Title IV funds. Effect: The University’s controls did not prevent the errors noted during the return of Title IV funds. Questioned Costs: Known and likely questioned costs did not exceed $25,000. Context: During the testing performed, it was noted for three students, the Title IV funds were returned after the 45-day required timeframe. The sample was non-statistical from a listing of students receiving financial aid. Identification As A Repeat Finding: Not a repeat finding. Recommendation: We recommend that management review its processes and controls surrounding this compliance requirement to ensure that the control is appropriate and operating effectively to support that the University is in compliance with the requirements of its federal program. Views Of Responsible Officials: The University agrees with the finding. The University is implementing a new student information system, which includes controls related to accurately returning Title IV funds.
Finding 2023-002
Finding 2023-002 - Significant Deficiency - Special Tests And Provisions - Return Of Title IV Funds - Compliance and Control Finding ALN 84.063 - Federal Pell Grant Program and 84.268 - Federal Direct Student Loan Program - Student Financial Aid Cluster Federal Agency: Department of Education Pass-Through Entity: None Criteria Or Specific Requirement: When a recipient of Title IV grant or loan assistance withdraws from the University during a payment period or period of enrollment in which the recipient began attendance, the University must determine the amount of Title IV aid earned by the student as of the student’s withdrawal date. Any amount unearned must be returned to the Title IV programs within 45 days. Condition: For a sample of 25 students, it was noted for three students tested that the Title IV funds were returned after the 45-day required timeframe. Cause: Controls over compliance put in place by management were not operating effectively as it relates to return of Title IV funds. Effect: The University’s controls did not prevent the errors noted during the return of Title IV funds. Questioned Costs: Known and likely questioned costs did not exceed $25,000. Context: During the testing performed, it was noted for three students, the Title IV funds were returned after the 45-day required timeframe. The sample was non-statistical from a listing of students receiving financial aid. Identification As A Repeat Finding: Not a repeat finding. Recommendation: We recommend that management review its processes and controls surrounding this compliance requirement to ensure that the control is appropriate and operating effectively to support that the University is in compliance with the requirements of its federal program. Views Of Responsible Officials: The University agrees with the finding. The University is implementing a new student information system, which includes controls related to accurately returning Title IV funds.
Finding 2023-003
Finding 2023-003 – Significant Deficiency: Special Tests and Provisions - Enrollment Reporting – Compliance and Control Finding ALN 84.063 - Federal Pell Grant Program and 84.268 - Federal Direct Student Loan Program - Student Financial Aid Cluster Federal Agency: Department of Education Pass-Through Entity: None Criteria Or Specific Requirement: The University is required to report changes to a student’s enrollment status and the date the enrollment status was effective and submit the changes to the National Student Loan Data System (NSLDS). The status changes must be reported at a minimum of every 60 days. Condition: Based on a sample of 22 students tested, the enrollment status of 17 students was not reported within the 60-day timeframe. Cause: Controls over compliance put in place by management related to the implementation of a new student information system in the current year were not operating effectively as it relates to enrollment reporting. Effect: The University’s was not in compliance with the enrollment reporting guidelines. In addition, the internal controls did not prevent instances of noncompliance from occurring. Questioned Costs: None. Context: Based on a sample of 22 students tested, the enrollment status of 17 students was not reported within the 60-day timeframe. The sample was non-statistical from a listing of students receiving financial aid. Identification As A Repeat Finding: Not a repeat finding. Recommendation: We recommend that management review its processes and controls surrounding this compliance requirement to ensure that the control is appropriate and operating effectively to support that the University is in compliance with the requirements of its federal program. Views Of Responsible Officials: The University agrees with the finding. The University is implementing a new student information system, which includes controls related to completing enrollment reporting in a timely and accurate manner.
Finding 2023-003
Finding 2023-003 – Significant Deficiency: Special Tests and Provisions - Enrollment Reporting – Compliance and Control Finding ALN 84.063 - Federal Pell Grant Program and 84.268 - Federal Direct Student Loan Program - Student Financial Aid Cluster Federal Agency: Department of Education Pass-Through Entity: None Criteria Or Specific Requirement: The University is required to report changes to a student’s enrollment status and the date the enrollment status was effective and submit the changes to the National Student Loan Data System (NSLDS). The status changes must be reported at a minimum of every 60 days. Condition: Based on a sample of 22 students tested, the enrollment status of 17 students was not reported within the 60-day timeframe. Cause: Controls over compliance put in place by management related to the implementation of a new student information system in the current year were not operating effectively as it relates to enrollment reporting. Effect: The University’s was not in compliance with the enrollment reporting guidelines. In addition, the internal controls did not prevent instances of noncompliance from occurring. Questioned Costs: None. Context: Based on a sample of 22 students tested, the enrollment status of 17 students was not reported within the 60-day timeframe. The sample was non-statistical from a listing of students receiving financial aid. Identification As A Repeat Finding: Not a repeat finding. Recommendation: We recommend that management review its processes and controls surrounding this compliance requirement to ensure that the control is appropriate and operating effectively to support that the University is in compliance with the requirements of its federal program. Views Of Responsible Officials: The University agrees with the finding. The University is implementing a new student information system, which includes controls related to completing enrollment reporting in a timely and accurate manner.
Finding 2023-004
Finding 2023-004 - Significant Deficiency: Special Tests and Provisions - Enrollment Reporting - Compliance and Control Finding ALN 84.268 - Federal Direct Student Loan Program - Student Financial Aid Cluster Federal Agency: Department of Education Pass-Through Entity: None Criteria Or Specific Requirement: The University is required to complete exit counseling for a student that was a recipient of a Direct Subsidized Loan, Direct Unsubsidized Loan, or student Direct PLUS Loan who is graduating, leaving school, or dropping below half-time enrollment. Condition: Based on a sample of 22 students tested, exist interviews for 5 students were not properly completed or documented. Cause: Controls over compliance put in place by management related to the implementation of a new student information system in the current year were not operating effectively as it relates to enrollment reporting, causing delays and oversights in the existing processes to ensure exit counseling is performed. Effect: The University’s was not in compliance with the enrollment reporting guidelines. In addition, the internal controls did not prevent instances of noncompliance from occurring. Questioned Costs: None. Context: Based on a sample of 22 students tested, 5 students were not properly notified of their requirement to complete loan repayment counseling. The sample was non-statistical from a listing of students receiving financial aid. Identification As A Repeat Finding: Not a repeat finding. Recommendation: We recommend that management review its processes and controls surrounding this compliance requirement to ensure that the control is appropriate and operating effectively to support that the University is in compliance with the requirements of its federal program. Views Of Responsible Officials: The University agrees with the finding. The University is implementing a new student information system, which includes controls related to completing enrollment reporting in a timely and accurate manner.