FAC Explorer

Audit 300136

FY End
2023-06-30
Total Expended
$11.95M
Findings
2
Programs
17
Organization: Colgate University (NY)
Year: 2023 Accepted: 2024-03-28
Auditor: Kpmg LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
388398 2023-001 Significant Deficiency - C
964840 2023-001 Significant Deficiency - C

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $6.70M Yes 1
84.063 Federal Pell Grant Program $2.22M Yes 0
84.U00 Federal Perkins Loan Program $646,940 Yes 0
47.050 Geosciences $595,838 - 0
47.049 Mathematical and Physical Sciences $430,279 - 0
84.007 Federal Supplemental Educational Opportunity Grants $332,352 Yes 0
84.033 Federal Work-Study Program $307,480 Yes 0
93.859 Biomedical Research and Research Training $156,894 - 0
45.163 Promotion of the Humanities_professional Development $148,882 - 0
47.076 Education and Human Resources $81,710 - 0
47.070 Computer and Information Science and Engineering $75,394 - 0
15.922 Native American Graves Protection and Repatriation Act $65,040 - 0
10.652 Forestry Research $60,630 - 0
47.075 Social, Behavioral, and Economic Sciences $52,267 - 0
47.074 Biological Sciences $33,346 - 0
43.001 Science $18,930 - 0
43.008 Education $11,418 - 0

Contacts

Name Title Type
D4P7H8NWZER7 Kyle Dombrowski Auditee
3152287235 Dean Geesler Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: The accompanying Supplementary Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of Colgate University (the University). The Schedule is presented on the accrual basis of accounting in accordance with U.S. generally accepted accounting principles and the requirements of 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 the Schedule may differ from amounts presented in, or used in the preparation of, the basic consolidated financial statements. De Minimis Rate Used: N Rate Explanation: Administrative costs are included in the reported expenditures to the extent such costs are included in the federal financial reports used as the source for the data presented. The University has not elected to utilize the 10% deminimus indirect cost rate in Part 200.514 of the Uniform Guidance. The accompanying Supplementary Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of Colgate University (the University). The Schedule is presented on the accrual basis of accounting in accordance with U.S. generally accepted accounting principles and the requirements of 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 the Schedule may differ from amounts presented in, or used in the preparation of, the basic consolidated financial statements.
Title: Administrative Costs Accounting Policies: The accompanying Supplementary Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of Colgate University (the University). The Schedule is presented on the accrual basis of accounting in accordance with U.S. generally accepted accounting principles and the requirements of 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 the Schedule may differ from amounts presented in, or used in the preparation of, the basic consolidated financial statements. De Minimis Rate Used: N Rate Explanation: Administrative costs are included in the reported expenditures to the extent such costs are included in the federal financial reports used as the source for the data presented. The University has not elected to utilize the 10% deminimus indirect cost rate in Part 200.514 of the Uniform Guidance. Administrative costs are included in the reported expenditures to the extent such costs are included in the federal financial reports used as the source for the data presented. The University has not elected to utilize the 10% deminimus indirect cost rate in Part 200.514 of the Uniform Guidance.
Title: Student Loan Programs Accounting Policies: The accompanying Supplementary Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of Colgate University (the University). The Schedule is presented on the accrual basis of accounting in accordance with U.S. generally accepted accounting principles and the requirements of 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 the Schedule may differ from amounts presented in, or used in the preparation of, the basic consolidated financial statements. De Minimis Rate Used: N Rate Explanation: Administrative costs are included in the reported expenditures to the extent such costs are included in the federal financial reports used as the source for the data presented. The University has not elected to utilize the 10% deminimus indirect cost rate in Part 200.514 of the Uniform Guidance. Federal Perkins Loan Program For the year ended June 30, 2023, the University made no loans under the Federal Perkins Loan Program and there was no administrative cost allowance claimed. The outstanding balance of loans receivable under this program was $283,666 and $646,940 at June 30, 2023 and 2022, respectively. The amount reported on the Schedule represents the June 30, 2022 outstanding loan balance. Federal Direct Student Loan Program During the year ended June 30, 2023, the University processed $6,704,557 of new loans under the Federal Direct Student Loan Program (which includes subsidized and unsubsidized Direct Loans and Direct Parents’ Loans for Undergraduate Students). With respect to the Federal Direct Student Loan Program, the University is only responsible for the performance of certain administrative duties; therefore, the University’s financial statements do not include any amounts relative to these loans. The cumulative amount of total loans guaranteed and outstanding at June 30, 2023 is undeterminable.

Finding Details

Finding 2023-001
(1) Summary of Auditors’ Results a. Type of report issued on whether the financial statements were prepared in accordance with generally accepted accounting principles: Unmodified b. Internal control deficiencies over financial reporting disclosed by the audit of the financial statements: • Material weaknesses: No • Significant deficiencies: None Reported c. Noncompliance material to the financial statements: No d. Internal control deficiencies over major programs disclosed by the audit: • Material weaknesses: No • Significant deficiencies: Yes – See Finding 2023-001 e. Type of report issued on compliance for major programs: Unmodified f. Audit findings that are required to be reported in accordance with 2 CFR 200.516(a): Yes g. Major program: • Student Financial Assistance Cluster – various Federal Assistance Listing numbers h. Dollar threshold used to distinguish between Type A and Type B programs: $750,000 i. Auditee qualified as a low-risk auditee: Yes (2) Findings Relating to the Financial Statements Reported in Accordance with Government Auditing Standards None. (3) Findings and Questioned Costs Relating to Federal Awards Finding Number: 2023-001 Federal Agency: U.S. Department of Education Program: Federal Direct Loan Program Federal Assistance Listing Numbers: 84.268 Criteria Per CFR 200 Part 5 Student Financial Statement Assistance Cluster, institutions request funds from the Education Department under the advance, reimbursement, or heightened cash monitoring payment methods. The University utilizes the reimbursement payment method. Under this method an institution is required to credit the student’s account with the eligible amount of funds and pay any remaining credit balances before seeking reimbursement from the Department of Education (ED). The reimbursement request must be accompanied by supporting documentation for the disbursed funds. Once the reimbursement request is approved, ED will transfer the funds electronically to the institution’s account. Condition The University submitted a reimbursement request for the Federal Direct Loan Program for November 2022 that was greater than the amount of funds disbursed for the period. The Financial Aid Office identified this error after the drawdown of funds occurred. After the identification of this error, the University issued a refund to ED in the amount of $1,987,716. However, there was a period during which the University had overdrawn its Federal Direct Loan Program funds. Cause The University’s cash management process did not include a requirement to review the reimbursement request before it was processed. Effect If appropriate controls are not designed and operating effectively over the cash management process, reimbursement requests may be submitted that are in excess of funds disbursed for the time period. Questioned Costs None Noted Statistical Sampling The sample was not intended to be and was not a statistically valid sample. Prior Year Finding No. Recommendation We recommend that the University perform and document a review of reimbursement submissions before they are processed to ensure that reimbursement requests are not in excess of funds disbursed for the period. Management Views After the identification of the error in the Federal Direct Loan reimbursement request for November 2022, the University implemented a review requirement. The Director of Tax and Financial Reporting or the AVP, Controller must review the reimbursement request calculated by the Assistant Controller and Director of Grant Accounting before it can be processed. As of June 30, 2023, this review requirement was fully implemented.
Finding 2023-001
(1) Summary of Auditors’ Results a. Type of report issued on whether the financial statements were prepared in accordance with generally accepted accounting principles: Unmodified b. Internal control deficiencies over financial reporting disclosed by the audit of the financial statements: • Material weaknesses: No • Significant deficiencies: None Reported c. Noncompliance material to the financial statements: No d. Internal control deficiencies over major programs disclosed by the audit: • Material weaknesses: No • Significant deficiencies: Yes – See Finding 2023-001 e. Type of report issued on compliance for major programs: Unmodified f. Audit findings that are required to be reported in accordance with 2 CFR 200.516(a): Yes g. Major program: • Student Financial Assistance Cluster – various Federal Assistance Listing numbers h. Dollar threshold used to distinguish between Type A and Type B programs: $750,000 i. Auditee qualified as a low-risk auditee: Yes (2) Findings Relating to the Financial Statements Reported in Accordance with Government Auditing Standards None. (3) Findings and Questioned Costs Relating to Federal Awards Finding Number: 2023-001 Federal Agency: U.S. Department of Education Program: Federal Direct Loan Program Federal Assistance Listing Numbers: 84.268 Criteria Per CFR 200 Part 5 Student Financial Statement Assistance Cluster, institutions request funds from the Education Department under the advance, reimbursement, or heightened cash monitoring payment methods. The University utilizes the reimbursement payment method. Under this method an institution is required to credit the student’s account with the eligible amount of funds and pay any remaining credit balances before seeking reimbursement from the Department of Education (ED). The reimbursement request must be accompanied by supporting documentation for the disbursed funds. Once the reimbursement request is approved, ED will transfer the funds electronically to the institution’s account. Condition The University submitted a reimbursement request for the Federal Direct Loan Program for November 2022 that was greater than the amount of funds disbursed for the period. The Financial Aid Office identified this error after the drawdown of funds occurred. After the identification of this error, the University issued a refund to ED in the amount of $1,987,716. However, there was a period during which the University had overdrawn its Federal Direct Loan Program funds. Cause The University’s cash management process did not include a requirement to review the reimbursement request before it was processed. Effect If appropriate controls are not designed and operating effectively over the cash management process, reimbursement requests may be submitted that are in excess of funds disbursed for the time period. Questioned Costs None Noted Statistical Sampling The sample was not intended to be and was not a statistically valid sample. Prior Year Finding No. Recommendation We recommend that the University perform and document a review of reimbursement submissions before they are processed to ensure that reimbursement requests are not in excess of funds disbursed for the period. Management Views After the identification of the error in the Federal Direct Loan reimbursement request for November 2022, the University implemented a review requirement. The Director of Tax and Financial Reporting or the AVP, Controller must review the reimbursement request calculated by the Assistant Controller and Director of Grant Accounting before it can be processed. As of June 30, 2023, this review requirement was fully implemented.