Audit 309538

FY End
2023-09-30
Total Expended
$147.57M
Findings
10
Programs
67
Year: 2023 Accepted: 2024-06-21

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
401408 2023-002 - - N
401409 2023-002 - - N
401410 2023-002 - - N
401411 2023-002 - - N
401412 2023-003 - - N
977850 2023-002 - - N
977851 2023-002 - - N
977852 2023-002 - - N
977853 2023-002 - - N
977854 2023-003 - - N

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $24.32M Yes 2
84.063 Federal Pell Grant Program $8.20M Yes 1
20.109 Air Transportation Centers of Excellence $1.24M - 0
12.600 Community Investment $1.03M - 0
11.015 Broad Agency Announcement $750,570 - 0
47.083 Integrative Activities $729,933 - 0
93.264 Nurse Faculty Loan Program (nflp) Outstanding $557,550 Yes 0
43.002 Aeronautics $427,567 - 0
84.425 Education Stabilization Fund $422,488 - 0
93.846 Arthritis, Musculoskeletal and Skin Diseases Research $325,499 - 0
84.007 Federal Supplemental Educational Opportunity Grants $313,209 Yes 1
11.609 Measurement and Engineering Research and Standards $240,669 - 0
11.432 National Oceanic and Atmospheric Administration (noaa) Cooperative Institutes $234,713 - 0
84.033 Federal Work-Study Program $232,748 Yes 1
84.365 English Language Acquisition State Grants $228,229 - 0
11.611 Manufacturing Extension Partnership $207,742 - 0
12.U01 Department of Defense $201,540 - 0
81.049 Office of Science Financial Assistance Program $194,205 - 0
81.RD Department of Energy $131,557 - 0
93.847 Diabetes, Digestive, and Kidney Diseases Extramural Research $122,210 - 0
84.411 Investing in Innovation (i3) Fund $120,258 - 0
93.853 Extramural Research Programs in the Neurosciences and Neurological Disorders $117,155 - 0
12.617 Economic Adjustment Assistance for State Governments $112,543 - 0
47.070 Computer and Information Science and Engineering $108,739 - 0
16.560 National Institute of Justice Research, Evaluation, and Development Project Grants $103,878 - 0
47.049 Mathematical and Physical Sciences $83,146 - 0
12.002 Procurement Technical Assistance for Business Firms $81,462 - 0
12.300 Basic and Applied Scientific Research $70,517 - 0
12.431 Basic Scientific Research $67,422 - 0
93.264 Nurse Faculty Loan Program (nflp) - New Loans Issues Fy 23 $61,341 Yes 0
93.855 Allergy, Immunology and Transplantation Research $60,567 - 0
15.820 National Climate Change and Wildlife Science Center $56,873 - 0
43.RD National Aeronautics & Aeronautics & Space Administration $46,062 - 0
12.RD Department of Defense $42,066 - 0
93.307 Minority Health and Health Disparities Research $38,962 - 0
12.903 Gencyber Grants Program $37,307 - 0
43.009 Cross Agency Support $37,137 - 0
19.040 Public Diplomacy Programs $37,038 - 0
21.015 Resources and Ecosystems Sustainability, Tourist Opportunities, and Revived Economies of the Gulf Coast States $35,155 - 0
47.074 Biological Sciences $32,131 - 0
11.431 Climate and Atmospheric Research $30,000 - 0
10.904 Watershed Protection and Flood Prevention $29,425 - 0
81.057 University Coal Research $29,161 - 0
10.558 Child and Adult Care Food Program $27,307 - 0
12.800 Air Force Defense Research Sciences Program $23,291 - 0
47.075 Social, Behavioral, and Economic Sciences $19,747 - 0
47.084 Nsf Technology, Innovation and Partnerships $19,381 - 0
47.041 Engineering $18,795 - 0
15.615 Cooperative Endangered Species Conservation Fund $17,953 - 0
47.050 Geosciences $16,860 - 0
43.003 Exploration $16,636 - 0
12.905 Cybersecurity Core Curriculum $10,954 Yes 0
84.325 Special Education - Personnel Development to Improve Services and Results for Children with Disabilities $9,597 - 0
93.113 Environmental Health $6,753 - 0
43.008 Education $5,901 - 0
12.902 Information Security Grants $4,642 - 0
12.630 Basic, Applied, and Advanced Research in Science and Engineering $3,810 - 0
43.012 Space Technology $3,077 - 0
66.516 P3 Award: National Student Design Competition for Sustainability $2,590 - 0
47.076 Education and Human Resources $2,560 - 0
10.699 Partnership Agreements $1,958 - 0
43.001 Science $1,621 - 0
11.RD Department of Commerce $1,529 - 0
59.037 Small Business Development Centers $563 - 0
11.459 Weather and Air Quality Research $233 - 0
20.509 Formula Grants for Rural Areas and Tribal Transit Program $-78 - 0
16.RD Department of Justice $-893 - 0

Contacts

Name Title Type
HB6KNGVNJRU1 Valarie King Auditee
2568242231 Richard Wagoner Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: For purposes of the Schedule, expenditures for federal award programs are recognized on the accrual basis of accounting unless otherwise directed by the terms and conditions of the underlying awards. Such expenditures are recognized following the cost principles contained in the Uniform Guidance wherein certain types of expenditures are not allowable or are limited to reimbursement. in the accompanying Schedule. The University was the recipient of funding under Assistance Listing #84.425, Higher Education Emergency Relief (Fund HEERF). Expenditures for federal student financial assistance programs include Federal Pell program grants to students, the federal share of students’ Federal Supplemental Educational Opportunity Grants, and Federal Work-Study Program earnings and administrative cost allowances where applicable. 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 operates under predetermined fixed F&A cost rates which are effective from October 1, 2020 through September 30, 2024. The predetermined fixed rates were based on 2015 financial information. Per 2 CFR 200.414 (g) a rate extension has been granted. For the fiscal year ended September 30, 2023, the base rate for on-campus research is 48% and 50% for Department of Defense contracts and subcontracts. Base rates for other F&A cost recoveries range from 10.0% to 50.0%. The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) summarizes the expenditures of The University of Alabama in Huntsville (the “University”), a campus of the University of Alabama System, under programs of the federal government for the year ended September 30, 2023. Other campuses of the University of Alabama System are presented in separate reports. The information presented in this Schedule is presented on the accrual basis of accounting, which is in accordance with the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only the federal award activity of the University, it is not intended to and does not present the financial position, changes in net position and cash flows of the University. The only component unit of the University is the University of Alabama in Huntsville Foundation. This component unit is not subject to requirements of the Uniform Guidance as it does not receive federal awards; therefore, it is not included within the Schedule or this report. For purposes of this Schedule, federal awards include all grants, contracts, and similar agreements entered into directly between the University and agencies and departments of the federal government and all sub-awards to the University by nonfederal organizations pursuant to federal grants, contracts, and similar agreements. Negative numbers in the Schedule represent adjustments to amounts reported in prior years in the normal course of business. The Assistance Listings and pass-through numbers have been provided to the extent they were available.
Title: Federal Student Loan Programs Accounting Policies: For purposes of the Schedule, expenditures for federal award programs are recognized on the accrual basis of accounting unless otherwise directed by the terms and conditions of the underlying awards. Such expenditures are recognized following the cost principles contained in the Uniform Guidance wherein certain types of expenditures are not allowable or are limited to reimbursement. in the accompanying Schedule. The University was the recipient of funding under Assistance Listing #84.425, Higher Education Emergency Relief (Fund HEERF). Expenditures for federal student financial assistance programs include Federal Pell program grants to students, the federal share of students’ Federal Supplemental Educational Opportunity Grants, and Federal Work-Study Program earnings and administrative cost allowances where applicable. 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 operates under predetermined fixed F&A cost rates which are effective from October 1, 2020 through September 30, 2024. The predetermined fixed rates were based on 2015 financial information. Per 2 CFR 200.414 (g) a rate extension has been granted. For the fiscal year ended September 30, 2023, the base rate for on-campus research is 48% and 50% for Department of Defense contracts and subcontracts. Base rates for other F&A cost recoveries range from 10.0% to 50.0%. The Nurse Faculty Loan Program (NFLP) is administered directly by the University, and balances and transactions relating to these programs are included in the University’s financial statements. NFLP loans outstanding at the beginning of the year, the administrative cost allowance and loans made during the year are included in the federal expenditures presented in the Schedule. The balance of loans outstanding at September 30, 2023 consists of: Nursing Faculty Loans ALN: 93.264 $550,524 The Federal Direct Student Loan Program (FDSLP) was established under the Higher Education Act of 1965, as amended in the Student Loan Reform Act of 1993. The FDSLP enables an eligible student or parent to obtain a Federal direct loan to pay for the student’s cost of attendance directly through the University rather than through private lenders. As a university qualified to originate loans, the University is responsible for handling the complete loan process, including funds management as well as promissory note functions. The University is not responsible for collection of these loans. The FDSLP loans issued during fiscal year 2023 are included in the federal expenditures presented in the Schedule.

Finding Details

E-Sign Act Cluster: Student Financial Assistance Federal Agency: Department of Education Assistance Listing Title and Number: All Award Name: Not applicable Award Identifying Number: Not applicable Award Year: Fiscal year 2023 Pass-through Entity: Not applicable Criteria: The University is subject to compliance requirements pertaining to the disbursement of funds to students under Federal Student Aid (FSA) programs within the Student Financial Assistance cluster. For any students participating in electronic transactions, schools must obtain their voluntary consent to participate pursuant to The Electronic Signatures in Global and National Commerce Act (or the E-Sign Act). Condition: While reviewing the underlying support for a sample of 25 students, we noted that voluntary consent for electronic disbursement participation was not obtained for any of these students. Questioned Costs: None Cause: The University inadvertently omitted the process where the student would voluntarily consent to participate in electronic transactions from the list of terms and conditions each student is required to accept. Effect: A lack of student consent to participate in electronic transactions may result in the transactions being denied legal effect, validity, or enforceability solely because it is in electronic form or because an electronic signature or electronic record was used in its formation. Recommendation: We recommend that management review the requirements of the E-Sign Act with respect to student electronic transaction voluntary consents and put in place processes that will ensure such consent is captured in future transactions. The University should continually assess the operation of the updated policies and procedures in place as it relates to voluntary consent.
E-Sign Act Cluster: Student Financial Assistance Federal Agency: Department of Education Assistance Listing Title and Number: All Award Name: Not applicable Award Identifying Number: Not applicable Award Year: Fiscal year 2023 Pass-through Entity: Not applicable Criteria: The University is subject to compliance requirements pertaining to the disbursement of funds to students under Federal Student Aid (FSA) programs within the Student Financial Assistance cluster. For any students participating in electronic transactions, schools must obtain their voluntary consent to participate pursuant to The Electronic Signatures in Global and National Commerce Act (or the E-Sign Act). Condition: While reviewing the underlying support for a sample of 25 students, we noted that voluntary consent for electronic disbursement participation was not obtained for any of these students. Questioned Costs: None Cause: The University inadvertently omitted the process where the student would voluntarily consent to participate in electronic transactions from the list of terms and conditions each student is required to accept. Effect: A lack of student consent to participate in electronic transactions may result in the transactions being denied legal effect, validity, or enforceability solely because it is in electronic form or because an electronic signature or electronic record was used in its formation. Recommendation: We recommend that management review the requirements of the E-Sign Act with respect to student electronic transaction voluntary consents and put in place processes that will ensure such consent is captured in future transactions. The University should continually assess the operation of the updated policies and procedures in place as it relates to voluntary consent.
E-Sign Act Cluster: Student Financial Assistance Federal Agency: Department of Education Assistance Listing Title and Number: All Award Name: Not applicable Award Identifying Number: Not applicable Award Year: Fiscal year 2023 Pass-through Entity: Not applicable Criteria: The University is subject to compliance requirements pertaining to the disbursement of funds to students under Federal Student Aid (FSA) programs within the Student Financial Assistance cluster. For any students participating in electronic transactions, schools must obtain their voluntary consent to participate pursuant to The Electronic Signatures in Global and National Commerce Act (or the E-Sign Act). Condition: While reviewing the underlying support for a sample of 25 students, we noted that voluntary consent for electronic disbursement participation was not obtained for any of these students. Questioned Costs: None Cause: The University inadvertently omitted the process where the student would voluntarily consent to participate in electronic transactions from the list of terms and conditions each student is required to accept. Effect: A lack of student consent to participate in electronic transactions may result in the transactions being denied legal effect, validity, or enforceability solely because it is in electronic form or because an electronic signature or electronic record was used in its formation. Recommendation: We recommend that management review the requirements of the E-Sign Act with respect to student electronic transaction voluntary consents and put in place processes that will ensure such consent is captured in future transactions. The University should continually assess the operation of the updated policies and procedures in place as it relates to voluntary consent.
E-Sign Act Cluster: Student Financial Assistance Federal Agency: Department of Education Assistance Listing Title and Number: All Award Name: Not applicable Award Identifying Number: Not applicable Award Year: Fiscal year 2023 Pass-through Entity: Not applicable Criteria: The University is subject to compliance requirements pertaining to the disbursement of funds to students under Federal Student Aid (FSA) programs within the Student Financial Assistance cluster. For any students participating in electronic transactions, schools must obtain their voluntary consent to participate pursuant to The Electronic Signatures in Global and National Commerce Act (or the E-Sign Act). Condition: While reviewing the underlying support for a sample of 25 students, we noted that voluntary consent for electronic disbursement participation was not obtained for any of these students. Questioned Costs: None Cause: The University inadvertently omitted the process where the student would voluntarily consent to participate in electronic transactions from the list of terms and conditions each student is required to accept. Effect: A lack of student consent to participate in electronic transactions may result in the transactions being denied legal effect, validity, or enforceability solely because it is in electronic form or because an electronic signature or electronic record was used in its formation. Recommendation: We recommend that management review the requirements of the E-Sign Act with respect to student electronic transaction voluntary consents and put in place processes that will ensure such consent is captured in future transactions. The University should continually assess the operation of the updated policies and procedures in place as it relates to voluntary consent.
Timeliness of Enrollment Reporting Cluster: Student Financial Assistance Federal Agency: Department of Education Assistance Listing Title and Number: 84.038 - Federal Direct Loan Program, Award Name: Not applicable Award Identifying Number: Not applicable Award Year: Fiscal year 2023 Pass-through Entity: Not applicable Criteria: In accordance with 34 CFR 690.83(b)(2) and 685.309, schools are required to report the enrollment status of students who received Federal Pell Grants and/or Federal Direct Loans to the National Student Loan Data System (“NSLDS”). Enrollment information, inclusive of campus level and program level data, must be reviewed, updated, and validated by the institution in a timely manner as it is used to determine the borrower’s eligibility for in-school status, deferment, interest subsidy and grace period. Specific to the Federal Direct Loan program, enrollment changes, such as a change from full-time to half-time status, graduation, withdrawal, or an approved leave of absence, are changes that need to be reported within 60 days of the change. Condition: We reviewed a sample of 25 students enrolled at the University who received either Federal Pell Grants and/or Federal Direct Loans and had a change in enrollment between March 1, 2023 and September 30, 2023 of the fiscal year. Through our enrollment reporting testing, we identified one student in which the status change was reported 274 days after the effective date of the change in enrollment status, which is greater than the 60-day requirement. Questioned Costs: None Cause: Although the University has processes and controls to timely report student enrollment changes to the National Student Clearinghouse (“NSC”) and to the NSLDS, these controls did not operate as designed during the period to meet the 60-day reporting requirement. The University did not timely review the unapplied records reported by NSC for the University’s review so that records could be reported to NSLDS. Effect: The effective administration of Federal Direct Loans could be impacted when changes in students’ enrollment are not reported accurately and/or timely. The timeliness of reporting enrollment information is important, as a student’s enrollment status determines eligibility for in-school status, deferment, grace period and repayments, as well as the government’s payment of interest subsidies. Recommendation: We recommend the University enhance its controls and revise its procedures to ensure that status changes are reported timely to the NSLDS.
E-Sign Act Cluster: Student Financial Assistance Federal Agency: Department of Education Assistance Listing Title and Number: All Award Name: Not applicable Award Identifying Number: Not applicable Award Year: Fiscal year 2023 Pass-through Entity: Not applicable Criteria: The University is subject to compliance requirements pertaining to the disbursement of funds to students under Federal Student Aid (FSA) programs within the Student Financial Assistance cluster. For any students participating in electronic transactions, schools must obtain their voluntary consent to participate pursuant to The Electronic Signatures in Global and National Commerce Act (or the E-Sign Act). Condition: While reviewing the underlying support for a sample of 25 students, we noted that voluntary consent for electronic disbursement participation was not obtained for any of these students. Questioned Costs: None Cause: The University inadvertently omitted the process where the student would voluntarily consent to participate in electronic transactions from the list of terms and conditions each student is required to accept. Effect: A lack of student consent to participate in electronic transactions may result in the transactions being denied legal effect, validity, or enforceability solely because it is in electronic form or because an electronic signature or electronic record was used in its formation. Recommendation: We recommend that management review the requirements of the E-Sign Act with respect to student electronic transaction voluntary consents and put in place processes that will ensure such consent is captured in future transactions. The University should continually assess the operation of the updated policies and procedures in place as it relates to voluntary consent.
E-Sign Act Cluster: Student Financial Assistance Federal Agency: Department of Education Assistance Listing Title and Number: All Award Name: Not applicable Award Identifying Number: Not applicable Award Year: Fiscal year 2023 Pass-through Entity: Not applicable Criteria: The University is subject to compliance requirements pertaining to the disbursement of funds to students under Federal Student Aid (FSA) programs within the Student Financial Assistance cluster. For any students participating in electronic transactions, schools must obtain their voluntary consent to participate pursuant to The Electronic Signatures in Global and National Commerce Act (or the E-Sign Act). Condition: While reviewing the underlying support for a sample of 25 students, we noted that voluntary consent for electronic disbursement participation was not obtained for any of these students. Questioned Costs: None Cause: The University inadvertently omitted the process where the student would voluntarily consent to participate in electronic transactions from the list of terms and conditions each student is required to accept. Effect: A lack of student consent to participate in electronic transactions may result in the transactions being denied legal effect, validity, or enforceability solely because it is in electronic form or because an electronic signature or electronic record was used in its formation. Recommendation: We recommend that management review the requirements of the E-Sign Act with respect to student electronic transaction voluntary consents and put in place processes that will ensure such consent is captured in future transactions. The University should continually assess the operation of the updated policies and procedures in place as it relates to voluntary consent.
E-Sign Act Cluster: Student Financial Assistance Federal Agency: Department of Education Assistance Listing Title and Number: All Award Name: Not applicable Award Identifying Number: Not applicable Award Year: Fiscal year 2023 Pass-through Entity: Not applicable Criteria: The University is subject to compliance requirements pertaining to the disbursement of funds to students under Federal Student Aid (FSA) programs within the Student Financial Assistance cluster. For any students participating in electronic transactions, schools must obtain their voluntary consent to participate pursuant to The Electronic Signatures in Global and National Commerce Act (or the E-Sign Act). Condition: While reviewing the underlying support for a sample of 25 students, we noted that voluntary consent for electronic disbursement participation was not obtained for any of these students. Questioned Costs: None Cause: The University inadvertently omitted the process where the student would voluntarily consent to participate in electronic transactions from the list of terms and conditions each student is required to accept. Effect: A lack of student consent to participate in electronic transactions may result in the transactions being denied legal effect, validity, or enforceability solely because it is in electronic form or because an electronic signature or electronic record was used in its formation. Recommendation: We recommend that management review the requirements of the E-Sign Act with respect to student electronic transaction voluntary consents and put in place processes that will ensure such consent is captured in future transactions. The University should continually assess the operation of the updated policies and procedures in place as it relates to voluntary consent.
E-Sign Act Cluster: Student Financial Assistance Federal Agency: Department of Education Assistance Listing Title and Number: All Award Name: Not applicable Award Identifying Number: Not applicable Award Year: Fiscal year 2023 Pass-through Entity: Not applicable Criteria: The University is subject to compliance requirements pertaining to the disbursement of funds to students under Federal Student Aid (FSA) programs within the Student Financial Assistance cluster. For any students participating in electronic transactions, schools must obtain their voluntary consent to participate pursuant to The Electronic Signatures in Global and National Commerce Act (or the E-Sign Act). Condition: While reviewing the underlying support for a sample of 25 students, we noted that voluntary consent for electronic disbursement participation was not obtained for any of these students. Questioned Costs: None Cause: The University inadvertently omitted the process where the student would voluntarily consent to participate in electronic transactions from the list of terms and conditions each student is required to accept. Effect: A lack of student consent to participate in electronic transactions may result in the transactions being denied legal effect, validity, or enforceability solely because it is in electronic form or because an electronic signature or electronic record was used in its formation. Recommendation: We recommend that management review the requirements of the E-Sign Act with respect to student electronic transaction voluntary consents and put in place processes that will ensure such consent is captured in future transactions. The University should continually assess the operation of the updated policies and procedures in place as it relates to voluntary consent.
Timeliness of Enrollment Reporting Cluster: Student Financial Assistance Federal Agency: Department of Education Assistance Listing Title and Number: 84.038 - Federal Direct Loan Program, Award Name: Not applicable Award Identifying Number: Not applicable Award Year: Fiscal year 2023 Pass-through Entity: Not applicable Criteria: In accordance with 34 CFR 690.83(b)(2) and 685.309, schools are required to report the enrollment status of students who received Federal Pell Grants and/or Federal Direct Loans to the National Student Loan Data System (“NSLDS”). Enrollment information, inclusive of campus level and program level data, must be reviewed, updated, and validated by the institution in a timely manner as it is used to determine the borrower’s eligibility for in-school status, deferment, interest subsidy and grace period. Specific to the Federal Direct Loan program, enrollment changes, such as a change from full-time to half-time status, graduation, withdrawal, or an approved leave of absence, are changes that need to be reported within 60 days of the change. Condition: We reviewed a sample of 25 students enrolled at the University who received either Federal Pell Grants and/or Federal Direct Loans and had a change in enrollment between March 1, 2023 and September 30, 2023 of the fiscal year. Through our enrollment reporting testing, we identified one student in which the status change was reported 274 days after the effective date of the change in enrollment status, which is greater than the 60-day requirement. Questioned Costs: None Cause: Although the University has processes and controls to timely report student enrollment changes to the National Student Clearinghouse (“NSC”) and to the NSLDS, these controls did not operate as designed during the period to meet the 60-day reporting requirement. The University did not timely review the unapplied records reported by NSC for the University’s review so that records could be reported to NSLDS. Effect: The effective administration of Federal Direct Loans could be impacted when changes in students’ enrollment are not reported accurately and/or timely. The timeliness of reporting enrollment information is important, as a student’s enrollment status determines eligibility for in-school status, deferment, grace period and repayments, as well as the government’s payment of interest subsidies. Recommendation: We recommend the University enhance its controls and revise its procedures to ensure that status changes are reported timely to the NSLDS.