FAC Explorer

Audit 300086

FY End
2023-06-30
Total Expended
$10.09M
Findings
8
Programs
7
Organization: Georgetown College (KY)
Year: 2023 Accepted: 2024-03-28
Auditor: Dean Dorton Allen Ford PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
388294 2023-001 - - E
388295 2023-002 Significant Deficiency - N
388296 2023-003 Significant Deficiency - N
388297 2023-003 Significant Deficiency - N
964736 2023-001 - - E
964737 2023-002 Significant Deficiency - N
964738 2023-003 Significant Deficiency - N
964739 2023-003 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $6.91M Yes 1
84.063 Federal Pell Grant Program $2.07M Yes 0
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $307,910 Yes 3
84.038 Federal Perkins Loan Program $303,861 Yes 0
84.425 Education Stabilization Fund $233,207 - 0
84.007 Federal Supplemental Educational Opportunity Grants $136,800 Yes 0
84.033 Federal Work-Study Program $123,505 Yes 0

Contacts

Name Title Type
LVSVTWUL1XT6 Rush Sherman Auditee
5027272872 Lance Mann Auditor
No contacts on file

Notes to SEFA

Title: Federal Student Loan Programs Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Georgetown College (the College) for the year ended June 30, 2023 and 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 (CFR) 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 College has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Federal Perkins Loan Program is administered directly by the College and balances and transactions relating to this program are included in the College's financial statements. Total cumulative loans outstanding from the Federal Perkins Loan Program of $303,861 are included in the accompanying schedule of expenditures of federal awards. No new loans were awarded and disbursed for the year ended June 30, 2023. The College is responsible only for the performance of certain administrative duties with respect to the Federal Direct Loan Program and, accordingly, these loans are not included in the financial statements of the College. It is not practical to determine the balance of loans outstanding to students and former students of the College under this program as of June 30, 2023. The current expenditures under the Federal Direct Loan Program of $6,910,735 are included in the accompanying schedule of expenditures of federal awards.

Finding Details

Finding 2023-001
Federal Program: U.S. Department of Education: TEACH Grant Criteria: The University must comply with 36 CFR Section 686.21(a)(2)(ii). Condition: We tested five TEACH Grant recipients for eligibility, and noted that one sample received over the aggregate amount of TEACH allowed over the student's academic career. The College performed additional analysis and noted that one other TEACH recipient had been over awarded. Cause: Two students were over disbursed the amount of TEACH Grant they were allowed to receive over their graduate academic career due to human error. Effect: The provisions of 36 CFR Section 686.21(a)(2)(ii) was not followed and thus two students were over disbursed the amount of TEACH Grant they were allowed to receive over their graduate academic career. Questioned Costs: The aggregate limit of TEACH grant allowed for the student selected was $8,000 and the student had received $8,464 of TEACH grant funds throughout their academic career, resulting in $464 of questioned costs. The College identified one additional student resulting in an additional $700 of questioned costs. Recommendation: We recommend the College implement procedures and review the aggregate amount of TEACH Grant disbursed to all students to verify the student is not over disbursed. View of Responsible Officials:
Finding 2023-002
Federal Program: U.S. Department of Education: TEACH Grant Criteria: The University must comply with 36 CFR Section 686.31(e)(1)(i). Condition: During our testing of eligibility, we noted five TEACH Grant recipients of five sampled were not notified of their right to cancel their TEACH Grant. Cause: The College did not have procedures in place to properly notify students of their right to cancel all or a portion of their TEACH grant. Effect: The provisions of 36 CFR Section 686.31(e)(1)(i) was not followed and thus five students were not notified on their right to cancel all or a portion of their TEACH Grant. Recommendation: We recommend the College update their notification to students to including wording about the students right to cancel their TEACH Grant. View of Responsible Officials:
Finding 2023-003
Federal Program: U.S. Department of Education: TEACH Grant, Direct Loans Criteria: The University must comply with 36 CFR Section 668.34(c)(1). Condition: During our testing of eligibility, we noted one sample out of forty that was not in compliance with satisfactory academic progress (SAP) at the end of the Spring 2023 semester and disbursed student financial aid for the Summer 2023 session. Cause: Due to the change in enrollment status of one student after the Fall 2022 semester, this caused the student's SAP calculation at the end of the Spring 2023 semester to be incorrect, and was not flagged as not in compliance with SAP. Effect: The provisions of 36 CFR Section 668.34(c)(1) was not followed and thus one student was disbursed student financial aid when they were not eligible to receive aid. Questioned Costs: $943 of TEACH (Assistance List #84.379) and $363 of unsubsidized direct loans (Assistance List #84.268) for a total of $1,306. The student was not in compliance with SAP at the end of the Spring 2023 semester and was disbursed $943 of TEACH Grant funds and $363 of unsubsidized direct loans for the Summer 2023 session. Recommendation: We recommend the College review the SAP status of all students at the end of each payment period to assess if students are properly or improperly in compliance with the SAP policy. View of Responsible Officials:
Finding 2023-003
Federal Program: U.S. Department of Education: TEACH Grant, Direct Loans Criteria: The University must comply with 36 CFR Section 668.34(c)(1). Condition: During our testing of eligibility, we noted one sample out of forty that was not in compliance with satisfactory academic progress (SAP) at the end of the Spring 2023 semester and disbursed student financial aid for the Summer 2023 session. Cause: Due to the change in enrollment status of one student after the Fall 2022 semester, this caused the student's SAP calculation at the end of the Spring 2023 semester to be incorrect, and was not flagged as not in compliance with SAP. Effect: The provisions of 36 CFR Section 668.34(c)(1) was not followed and thus one student was disbursed student financial aid when they were not eligible to receive aid. Questioned Costs: $943 of TEACH (Assistance List #84.379) and $363 of unsubsidized direct loans (Assistance List #84.268) for a total of $1,306. The student was not in compliance with SAP at the end of the Spring 2023 semester and was disbursed $943 of TEACH Grant funds and $363 of unsubsidized direct loans for the Summer 2023 session. Recommendation: We recommend the College review the SAP status of all students at the end of each payment period to assess if students are properly or improperly in compliance with the SAP policy. View of Responsible Officials:
Finding 2023-001
Federal Program: U.S. Department of Education: TEACH Grant Criteria: The University must comply with 36 CFR Section 686.21(a)(2)(ii). Condition: We tested five TEACH Grant recipients for eligibility, and noted that one sample received over the aggregate amount of TEACH allowed over the student's academic career. The College performed additional analysis and noted that one other TEACH recipient had been over awarded. Cause: Two students were over disbursed the amount of TEACH Grant they were allowed to receive over their graduate academic career due to human error. Effect: The provisions of 36 CFR Section 686.21(a)(2)(ii) was not followed and thus two students were over disbursed the amount of TEACH Grant they were allowed to receive over their graduate academic career. Questioned Costs: The aggregate limit of TEACH grant allowed for the student selected was $8,000 and the student had received $8,464 of TEACH grant funds throughout their academic career, resulting in $464 of questioned costs. The College identified one additional student resulting in an additional $700 of questioned costs. Recommendation: We recommend the College implement procedures and review the aggregate amount of TEACH Grant disbursed to all students to verify the student is not over disbursed. View of Responsible Officials:
Finding 2023-002
Federal Program: U.S. Department of Education: TEACH Grant Criteria: The University must comply with 36 CFR Section 686.31(e)(1)(i). Condition: During our testing of eligibility, we noted five TEACH Grant recipients of five sampled were not notified of their right to cancel their TEACH Grant. Cause: The College did not have procedures in place to properly notify students of their right to cancel all or a portion of their TEACH grant. Effect: The provisions of 36 CFR Section 686.31(e)(1)(i) was not followed and thus five students were not notified on their right to cancel all or a portion of their TEACH Grant. Recommendation: We recommend the College update their notification to students to including wording about the students right to cancel their TEACH Grant. View of Responsible Officials:
Finding 2023-003
Federal Program: U.S. Department of Education: TEACH Grant, Direct Loans Criteria: The University must comply with 36 CFR Section 668.34(c)(1). Condition: During our testing of eligibility, we noted one sample out of forty that was not in compliance with satisfactory academic progress (SAP) at the end of the Spring 2023 semester and disbursed student financial aid for the Summer 2023 session. Cause: Due to the change in enrollment status of one student after the Fall 2022 semester, this caused the student's SAP calculation at the end of the Spring 2023 semester to be incorrect, and was not flagged as not in compliance with SAP. Effect: The provisions of 36 CFR Section 668.34(c)(1) was not followed and thus one student was disbursed student financial aid when they were not eligible to receive aid. Questioned Costs: $943 of TEACH (Assistance List #84.379) and $363 of unsubsidized direct loans (Assistance List #84.268) for a total of $1,306. The student was not in compliance with SAP at the end of the Spring 2023 semester and was disbursed $943 of TEACH Grant funds and $363 of unsubsidized direct loans for the Summer 2023 session. Recommendation: We recommend the College review the SAP status of all students at the end of each payment period to assess if students are properly or improperly in compliance with the SAP policy. View of Responsible Officials:
Finding 2023-003
Federal Program: U.S. Department of Education: TEACH Grant, Direct Loans Criteria: The University must comply with 36 CFR Section 668.34(c)(1). Condition: During our testing of eligibility, we noted one sample out of forty that was not in compliance with satisfactory academic progress (SAP) at the end of the Spring 2023 semester and disbursed student financial aid for the Summer 2023 session. Cause: Due to the change in enrollment status of one student after the Fall 2022 semester, this caused the student's SAP calculation at the end of the Spring 2023 semester to be incorrect, and was not flagged as not in compliance with SAP. Effect: The provisions of 36 CFR Section 668.34(c)(1) was not followed and thus one student was disbursed student financial aid when they were not eligible to receive aid. Questioned Costs: $943 of TEACH (Assistance List #84.379) and $363 of unsubsidized direct loans (Assistance List #84.268) for a total of $1,306. The student was not in compliance with SAP at the end of the Spring 2023 semester and was disbursed $943 of TEACH Grant funds and $363 of unsubsidized direct loans for the Summer 2023 session. Recommendation: We recommend the College review the SAP status of all students at the end of each payment period to assess if students are properly or improperly in compliance with the SAP policy. View of Responsible Officials: