FAC Explorer

Audit 300486

FY End
2023-06-30
Total Expended
$92.98M
Findings
8
Programs
21
Organization: Widener University (PA)
Year: 2023 Accepted: 2024-03-29
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
389521 2023-001 Significant Deficiency - N
389522 2023-001 Significant Deficiency - N
389523 2023-002 Significant Deficiency - L
389524 2023-003 Significant Deficiency - N
965963 2023-001 Significant Deficiency - N
965964 2023-001 Significant Deficiency - N
965965 2023-002 Significant Deficiency - L
965966 2023-003 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $80.62M Yes 1
84.038 Federal Perkins Loan Program $3.47M Yes 1
84.063 Federal Pell Grant Program $3.21M Yes 1
84.425 Education Stabilization Fund $1.51M Yes 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $1.06M Yes 1
84.007 Federal Supplemental Educational Opportunity Grants $785,659 Yes 0
84.033 Federal Work-Study Program $560,057 Yes 0
93.926 Healthy Start Initiative $347,059 - 0
93.178 Nursing Workforce Diversity $268,753 - 0
47.041 Engineering $194,867 - 0
47.074 Biological Sciences $148,397 - 0
59.037 Small Business Development Centers $123,626 - 0
93.865 Child Health and Human Development Extramural Research $78,091 - 0
93.732 Mental and Behavioral Health Education and Training Grants $18,398 - 0
93.779 Centers for Medicare and Medicaid Services (cms) Research, Demonstrations and Evaluations $16,280 - 0
93.273 Alcohol Research Programs $10,137 - 0
93.226 Research on Healthcare Costs, Quality and Outcomes $9,157 - 0
19.009 Academic Exchange Programs - Undergraduate Programs $8,106 - 0
12.002 Procurement Technical Assistance for Business Firms $7,802 - 0
47.049 Mathematical and Physical Sciences $6,590 - 0
93.286 Discovery and Applied Research for Technological Innovations to Improve Human Health $4,300 - 0

Contacts

Name Title Type
GP1SKG5MFH79 William S. Lockard III Auditee
6104994396 Michael Johns Auditor
No contacts on file

Notes to SEFA

Title: FEDERAL STUDENT LOAN PROGRAMS Accounting Policies: NOTE 1 BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Widener University under programs of the federal government for the year ended June 30, 2023. The information in this Schedule is presented in accordance with the requirements of 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Widener University, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Widener University. For purposes of the Schedule, federal awards include all grants, contracts, and similar agreements entered into directly between the University and agencies or departments of the federal government, and all subawards to the University by nonfederal organizations pursuant to federal grants, contracts, and similar agreements. NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: NOTE 3 INDIRECT COST RATE Widener University elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The Federal Perkins Loan Program is administered directly by Widener University, and balances and transactions relating to this program are included in Widener University’s basic consolidated financial statements. Loans outstanding at the beginning of the year and loans made during the year are included in the federal expenditures presented in the Schedule. The balance of loans outstanding at June 30, 2023 is $2,815,364.
Title: FEDERAL EMERGENCY MANAGEMENT AGENCY (FEMA) FUNDING Accounting Policies: NOTE 1 BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Widener University under programs of the federal government for the year ended June 30, 2023. The information in this Schedule is presented in accordance with the requirements of 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Widener University, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Widener University. For purposes of the Schedule, federal awards include all grants, contracts, and similar agreements entered into directly between the University and agencies or departments of the federal government, and all subawards to the University by nonfederal organizations pursuant to federal grants, contracts, and similar agreements. NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: NOTE 3 INDIRECT COST RATE Widener University elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The University applied for and was approved for FEMA funding during fiscal years 2022 and 2023. These expenditures were incurred in fiscal years 2020, 2021, 2022 and 2023 in the amount of $55,907, $940,989, $50,922, and $15,000, respectively. Since FEMA obligated the funding in fiscal year 2023, these expenditures are included on the fiscal year 2023 schedule of expenditures of federal awards.

Finding Details

Finding 2023-001
2023-001 Enrollment Reporting Federal Agency: U.S. Department of Education Federal Program Names: Federal Pell Grant Program; Federal Direct Student Loans Assistance Listing Numbers: 84.063; 84.268 Federal Award Identification Number and Year: Federal Pell Grant Program 2023 – P063P232128, P063P222128, P063Q222128; Federal Direct Student Loans 2023 – P268K247031, P268K247015, P268K242128, P268K237031, P268K237015, P268K232128, P268K227031, P268K227015, P268K222128. Award Period: 7/1/2022 – 6/30/2023 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or Specific Requirement: Per U.S. Department of Education (ED) regulations, all schools participating (or approved to participate) in the Federal Student Aid programs must have an arrangement to report student enrollment data to the NSLDS through a roster file. The school is required to report enrollment status at both the school and program level. The school is required to report changes in the student’s enrollment status, the effective date of the status and an anticipated completion date. An academic program is defined as the combination of the school’s Office of Postsecondary Education Identification (OPEID) number and the program’s Classification of Instructional Program (CIP) code, credential level, and published program length. ED requires the University to report changes in enrollment status and indicate the date that the changes occurred (34 CFR 685.309). Changes in enrollment status must be reported within 30 days. However, if a roster file is expected within 60 days, you may provide the date on that roster file. ED requires the institution to report changes in enrollment status within 30 or 60 days that the institution determined the changes occurred (34 CFR 682.610). Condition: Certain students’ enrollment information was not reported accurately or timely to the NSLDS. Questioned Costs: None. Context: During our testing, we noted the following: • In our sample of 40 students tested, 14 students were reported with the incorrect published program length per program-level NSLDS. • In our sample of 40 students tested, 1 student were not reported to the campus-level record in the NSLDS in a timely manner. Cause: Published program length set by the University is based on the 45-week academic year in place for graduate programs. However, when this information is reported to NSLDS, NSLDS bases this calculation on the typically 30-week academic year, causing the incorrect program length to be reflected in NSLDS. Effect: Inaccurate reporting to the NSLDS can result in incorrect determination of when the students’ grace period should begin. Repeat Finding: No. Recommendation: The University should review its policies and procedures on reporting of enrollment status changes to NSLDS to ensure that all status changes are being reported accurately to be in compliance with regulations. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2023-001
2023-001 Enrollment Reporting Federal Agency: U.S. Department of Education Federal Program Names: Federal Pell Grant Program; Federal Direct Student Loans Assistance Listing Numbers: 84.063; 84.268 Federal Award Identification Number and Year: Federal Pell Grant Program 2023 – P063P232128, P063P222128, P063Q222128; Federal Direct Student Loans 2023 – P268K247031, P268K247015, P268K242128, P268K237031, P268K237015, P268K232128, P268K227031, P268K227015, P268K222128. Award Period: 7/1/2022 – 6/30/2023 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or Specific Requirement: Per U.S. Department of Education (ED) regulations, all schools participating (or approved to participate) in the Federal Student Aid programs must have an arrangement to report student enrollment data to the NSLDS through a roster file. The school is required to report enrollment status at both the school and program level. The school is required to report changes in the student’s enrollment status, the effective date of the status and an anticipated completion date. An academic program is defined as the combination of the school’s Office of Postsecondary Education Identification (OPEID) number and the program’s Classification of Instructional Program (CIP) code, credential level, and published program length. ED requires the University to report changes in enrollment status and indicate the date that the changes occurred (34 CFR 685.309). Changes in enrollment status must be reported within 30 days. However, if a roster file is expected within 60 days, you may provide the date on that roster file. ED requires the institution to report changes in enrollment status within 30 or 60 days that the institution determined the changes occurred (34 CFR 682.610). Condition: Certain students’ enrollment information was not reported accurately or timely to the NSLDS. Questioned Costs: None. Context: During our testing, we noted the following: • In our sample of 40 students tested, 14 students were reported with the incorrect published program length per program-level NSLDS. • In our sample of 40 students tested, 1 student were not reported to the campus-level record in the NSLDS in a timely manner. Cause: Published program length set by the University is based on the 45-week academic year in place for graduate programs. However, when this information is reported to NSLDS, NSLDS bases this calculation on the typically 30-week academic year, causing the incorrect program length to be reflected in NSLDS. Effect: Inaccurate reporting to the NSLDS can result in incorrect determination of when the students’ grace period should begin. Repeat Finding: No. Recommendation: The University should review its policies and procedures on reporting of enrollment status changes to NSLDS to ensure that all status changes are being reported accurately to be in compliance with regulations. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2023-002
2023-002 Reporting Federal Agency: Federal Emergency Management Agency Federal Program Names: COVID-19, Disaster Grants – Public Assistance Assistance Listing Number: 97.036 Award Period: 7/1/2022 – 6/30/2023 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or Specific Requirement: Uniform guidance requires the auditee to prepare a schedule of expenditures of federal awards (SEFA) which must include the total federal awards expended as determined in accordance with sub-section 200.502. 2 CFR 200.510. Condition: It was identified that there were expenditures included on SEFA for the year ended June 30, 2023 that were for awards obligated in the prior fiscal year. Questioned Costs: None. Context: There are $78,859 reported on the current year SEFA that should have been reported on the SEFA for the period ended June 30, 2022. Cause: The University’s policies and procedures did not ensure that funds obligated in the prior fiscal year were appropriately included on the SEFA. Effect: Amounts reported on the current year SEFA should have been reported on the prior year SEFA. Repeat Finding: No. Recommendation: We recommend that the University reevaluate its policies and controls related to the preparation of the SEFA to ensure its complete and accurate. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2023-003
2023-003 Perkins Compliance Report Federal Agency: U.S. Department of Education Federal Program Names: Federal Perkins Loan Program Assistance Listing Number: 84.038 Award Period: 7/1/2022 – 6/30/2023 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or Specific Requirement: Code of Federal Regulations Title 34, Subtitle B, Chapter VI, Part 674.19 requires that in administering its Federal Perkins Loan program, an institution shall establish and maintain an internal control system of checks and balances that ensures that no office can both authorize payments and disburse funds to students. When an institution uses a third-party servicer for its Perkins Loan program, the institution must perform due diligence to ensure that the third-party service is in compliance with the requirements for the functions the third-party servicer is performing for the institution. Such due diligence could include obtaining and reviewing the third-party servicer’s most recent Title IV compliance audit. Condition: The University utilizes a third party service for its Perkins Loan servicing. This is a very common practice for colleges and universities in order to provide the most efficient and effective means to not only collect loans but meet the federal regulations for servicing student Perkins Loans. In order to perform the due diligence required per the Code of Regulations, the institution utilizes the external compliance report performed for the third party servicer by other auditors. The third party servicer’s compliance audit report for the year ended June 30, 2023 was not issued as of the report date of the uniform guidance report. Therefore, the University was unable to perform due diligence on the third party provider’s internal control over the Perkin’s requirements. Questioned Costs: None. Context: We noted that the University was not able to obtain the third party’s compliance report as of the date of the Uniform Guidance Report. Cause: The third party servicer, did not have their Title IV compliance audit report completed for the year ending June 30, 2023 so that the University can perform their required due diligence on the third party servicer Effect: The University did not perform due diligence to ensure that the third-party service is in compliance with the requirements for the functions the third-party servicer is performing for the institution. Repeat Finding: No. Recommendation: We recommend the University implement a procedure with the third party servicer to ensure that their report is completed timely so that the University can perform the necessary due diligence they need to perform. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2023-001
2023-001 Enrollment Reporting Federal Agency: U.S. Department of Education Federal Program Names: Federal Pell Grant Program; Federal Direct Student Loans Assistance Listing Numbers: 84.063; 84.268 Federal Award Identification Number and Year: Federal Pell Grant Program 2023 – P063P232128, P063P222128, P063Q222128; Federal Direct Student Loans 2023 – P268K247031, P268K247015, P268K242128, P268K237031, P268K237015, P268K232128, P268K227031, P268K227015, P268K222128. Award Period: 7/1/2022 – 6/30/2023 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or Specific Requirement: Per U.S. Department of Education (ED) regulations, all schools participating (or approved to participate) in the Federal Student Aid programs must have an arrangement to report student enrollment data to the NSLDS through a roster file. The school is required to report enrollment status at both the school and program level. The school is required to report changes in the student’s enrollment status, the effective date of the status and an anticipated completion date. An academic program is defined as the combination of the school’s Office of Postsecondary Education Identification (OPEID) number and the program’s Classification of Instructional Program (CIP) code, credential level, and published program length. ED requires the University to report changes in enrollment status and indicate the date that the changes occurred (34 CFR 685.309). Changes in enrollment status must be reported within 30 days. However, if a roster file is expected within 60 days, you may provide the date on that roster file. ED requires the institution to report changes in enrollment status within 30 or 60 days that the institution determined the changes occurred (34 CFR 682.610). Condition: Certain students’ enrollment information was not reported accurately or timely to the NSLDS. Questioned Costs: None. Context: During our testing, we noted the following: • In our sample of 40 students tested, 14 students were reported with the incorrect published program length per program-level NSLDS. • In our sample of 40 students tested, 1 student were not reported to the campus-level record in the NSLDS in a timely manner. Cause: Published program length set by the University is based on the 45-week academic year in place for graduate programs. However, when this information is reported to NSLDS, NSLDS bases this calculation on the typically 30-week academic year, causing the incorrect program length to be reflected in NSLDS. Effect: Inaccurate reporting to the NSLDS can result in incorrect determination of when the students’ grace period should begin. Repeat Finding: No. Recommendation: The University should review its policies and procedures on reporting of enrollment status changes to NSLDS to ensure that all status changes are being reported accurately to be in compliance with regulations. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2023-001
2023-001 Enrollment Reporting Federal Agency: U.S. Department of Education Federal Program Names: Federal Pell Grant Program; Federal Direct Student Loans Assistance Listing Numbers: 84.063; 84.268 Federal Award Identification Number and Year: Federal Pell Grant Program 2023 – P063P232128, P063P222128, P063Q222128; Federal Direct Student Loans 2023 – P268K247031, P268K247015, P268K242128, P268K237031, P268K237015, P268K232128, P268K227031, P268K227015, P268K222128. Award Period: 7/1/2022 – 6/30/2023 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or Specific Requirement: Per U.S. Department of Education (ED) regulations, all schools participating (or approved to participate) in the Federal Student Aid programs must have an arrangement to report student enrollment data to the NSLDS through a roster file. The school is required to report enrollment status at both the school and program level. The school is required to report changes in the student’s enrollment status, the effective date of the status and an anticipated completion date. An academic program is defined as the combination of the school’s Office of Postsecondary Education Identification (OPEID) number and the program’s Classification of Instructional Program (CIP) code, credential level, and published program length. ED requires the University to report changes in enrollment status and indicate the date that the changes occurred (34 CFR 685.309). Changes in enrollment status must be reported within 30 days. However, if a roster file is expected within 60 days, you may provide the date on that roster file. ED requires the institution to report changes in enrollment status within 30 or 60 days that the institution determined the changes occurred (34 CFR 682.610). Condition: Certain students’ enrollment information was not reported accurately or timely to the NSLDS. Questioned Costs: None. Context: During our testing, we noted the following: • In our sample of 40 students tested, 14 students were reported with the incorrect published program length per program-level NSLDS. • In our sample of 40 students tested, 1 student were not reported to the campus-level record in the NSLDS in a timely manner. Cause: Published program length set by the University is based on the 45-week academic year in place for graduate programs. However, when this information is reported to NSLDS, NSLDS bases this calculation on the typically 30-week academic year, causing the incorrect program length to be reflected in NSLDS. Effect: Inaccurate reporting to the NSLDS can result in incorrect determination of when the students’ grace period should begin. Repeat Finding: No. Recommendation: The University should review its policies and procedures on reporting of enrollment status changes to NSLDS to ensure that all status changes are being reported accurately to be in compliance with regulations. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2023-002
2023-002 Reporting Federal Agency: Federal Emergency Management Agency Federal Program Names: COVID-19, Disaster Grants – Public Assistance Assistance Listing Number: 97.036 Award Period: 7/1/2022 – 6/30/2023 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or Specific Requirement: Uniform guidance requires the auditee to prepare a schedule of expenditures of federal awards (SEFA) which must include the total federal awards expended as determined in accordance with sub-section 200.502. 2 CFR 200.510. Condition: It was identified that there were expenditures included on SEFA for the year ended June 30, 2023 that were for awards obligated in the prior fiscal year. Questioned Costs: None. Context: There are $78,859 reported on the current year SEFA that should have been reported on the SEFA for the period ended June 30, 2022. Cause: The University’s policies and procedures did not ensure that funds obligated in the prior fiscal year were appropriately included on the SEFA. Effect: Amounts reported on the current year SEFA should have been reported on the prior year SEFA. Repeat Finding: No. Recommendation: We recommend that the University reevaluate its policies and controls related to the preparation of the SEFA to ensure its complete and accurate. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2023-003
2023-003 Perkins Compliance Report Federal Agency: U.S. Department of Education Federal Program Names: Federal Perkins Loan Program Assistance Listing Number: 84.038 Award Period: 7/1/2022 – 6/30/2023 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or Specific Requirement: Code of Federal Regulations Title 34, Subtitle B, Chapter VI, Part 674.19 requires that in administering its Federal Perkins Loan program, an institution shall establish and maintain an internal control system of checks and balances that ensures that no office can both authorize payments and disburse funds to students. When an institution uses a third-party servicer for its Perkins Loan program, the institution must perform due diligence to ensure that the third-party service is in compliance with the requirements for the functions the third-party servicer is performing for the institution. Such due diligence could include obtaining and reviewing the third-party servicer’s most recent Title IV compliance audit. Condition: The University utilizes a third party service for its Perkins Loan servicing. This is a very common practice for colleges and universities in order to provide the most efficient and effective means to not only collect loans but meet the federal regulations for servicing student Perkins Loans. In order to perform the due diligence required per the Code of Regulations, the institution utilizes the external compliance report performed for the third party servicer by other auditors. The third party servicer’s compliance audit report for the year ended June 30, 2023 was not issued as of the report date of the uniform guidance report. Therefore, the University was unable to perform due diligence on the third party provider’s internal control over the Perkin’s requirements. Questioned Costs: None. Context: We noted that the University was not able to obtain the third party’s compliance report as of the date of the Uniform Guidance Report. Cause: The third party servicer, did not have their Title IV compliance audit report completed for the year ending June 30, 2023 so that the University can perform their required due diligence on the third party servicer Effect: The University did not perform due diligence to ensure that the third-party service is in compliance with the requirements for the functions the third-party servicer is performing for the institution. Repeat Finding: No. Recommendation: We recommend the University implement a procedure with the third party servicer to ensure that their report is completed timely so that the University can perform the necessary due diligence they need to perform. Views of responsible officials: There is no disagreement with the audit finding.