FAC Explorer

Audit 317146

FY End
2022-06-30
Total Expended
$7.04M
Findings
4
Programs
5
Organization: American Baptist Theological Seminary (TN)
Year: 2022 Accepted: 2024-08-13
Auditor: Hoskins & CO PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
481028 2022-001 Significant Deficiency - C
481029 2022-002 Significant Deficiency - C
1057470 2022-001 Significant Deficiency - C
1057471 2022-002 Significant Deficiency - C

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $4.38M Yes 0
84.031 Higher Education_institutional Aid $1.83M - 2
84.268 Federal Direct Student Loans $277,272 - 0
84.063 Federal Pell Grant Program $162,685 - 0
84.007 Federal Supplemental Educational Opportunity Grants $8,808 - 0

Contacts

Name Title Type
DZSYVAL2PV73 Brooke Bell Auditee
6156876906 Gina Inkum Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1---SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Nature of Organization American Baptist College (the “College”) was founded in 1924. In 1971, the College became an accredited four-year undergraduate bible college. The College is an accredited member of the Commission on Accreditation of the Association for Biblical Higher Education (ABHE); approved to award the Associate of Arts, Bachelor of Arts, and Bachelor of Theology degrees. The mission statement of the College is to educate, graduate and prepare a predominantly African American student population for leadership, service and social justice in the world. The school offers a quality educational program with a liberal arts emphasis, equipping diverse students intellectually, morally, spiritually, socially, and theologically. The College offers undergraduate and graduate degree programs at its Nashville, Tennessee campus and globally on-line. Its fields of study include a mandatory divisional major in Biblical-Theological Studies and additional majors in Pastoral Studies, Christian Education or Social Sciences Basis of Presentation The accompanying schedule of expenditures of federal awards is presented in accordance with the requirements by Title 2 U.S. Code of Federal Regulations (“CFR”) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”), on the accrual basis of accounting consistent with the basis of accounting used by the College in the preparation of its financial statements. Therefore some amounts presented may differ from amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: N Rate Explanation: The College did not elect to utilize the 10% De Minimis election in the fiscal year June 30, 2022. Nature of Organization American Baptist College (the “College”) was founded in 1924. In 1971, the College became an accredited four-year undergraduate bible college. The College is an accredited member of the Commission on Accreditation of the Association for Biblical Higher Education (ABHE); approved to award the Associate of Arts, Bachelor of Arts, and Bachelor of Theology degrees. The mission statement of the College is to educate, graduate and prepare a predominantly African American student population for leadership, service and social justice in the world. The school offers a quality educational program with a liberal arts emphasis, equipping diverse students intellectually, morally, spiritually, socially, and theologically. The College offers undergraduate and graduate degree programs at its Nashville, Tennessee campus and globally on-line. Its fields of study include a mandatory divisional major in Biblical-Theological Studies and additional majors in Pastoral Studies, Christian Education or Social Sciences Basis of Presentation The accompanying schedule of expenditures of federal awards is presented in accordance with the requirements by Title 2 U.S. Code of Federal Regulations (“CFR”) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”), on the accrual basis of accounting consistent with the basis of accounting used by the College in the preparation of its financial statements. Therefore some amounts presented may differ from amounts presented in, or used in the preparation of, the financial statements.
Title: NOTE 2---DE MINIMIS ELECTION Accounting Policies: Nature of Organization American Baptist College (the “College”) was founded in 1924. In 1971, the College became an accredited four-year undergraduate bible college. The College is an accredited member of the Commission on Accreditation of the Association for Biblical Higher Education (ABHE); approved to award the Associate of Arts, Bachelor of Arts, and Bachelor of Theology degrees. The mission statement of the College is to educate, graduate and prepare a predominantly African American student population for leadership, service and social justice in the world. The school offers a quality educational program with a liberal arts emphasis, equipping diverse students intellectually, morally, spiritually, socially, and theologically. The College offers undergraduate and graduate degree programs at its Nashville, Tennessee campus and globally on-line. Its fields of study include a mandatory divisional major in Biblical-Theological Studies and additional majors in Pastoral Studies, Christian Education or Social Sciences Basis of Presentation The accompanying schedule of expenditures of federal awards is presented in accordance with the requirements by Title 2 U.S. Code of Federal Regulations (“CFR”) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”), on the accrual basis of accounting consistent with the basis of accounting used by the College in the preparation of its financial statements. Therefore some amounts presented may differ from amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: N Rate Explanation: The College did not elect to utilize the 10% De Minimis election in the fiscal year June 30, 2022. The College did not elect to utilize the 10% De Minimis election in the fiscal year June 30, 2022.
Title: NOTE 3---FEDERAL DIRECT LOAN PROGRAM Accounting Policies: Nature of Organization American Baptist College (the “College”) was founded in 1924. In 1971, the College became an accredited four-year undergraduate bible college. The College is an accredited member of the Commission on Accreditation of the Association for Biblical Higher Education (ABHE); approved to award the Associate of Arts, Bachelor of Arts, and Bachelor of Theology degrees. The mission statement of the College is to educate, graduate and prepare a predominantly African American student population for leadership, service and social justice in the world. The school offers a quality educational program with a liberal arts emphasis, equipping diverse students intellectually, morally, spiritually, socially, and theologically. The College offers undergraduate and graduate degree programs at its Nashville, Tennessee campus and globally on-line. Its fields of study include a mandatory divisional major in Biblical-Theological Studies and additional majors in Pastoral Studies, Christian Education or Social Sciences Basis of Presentation The accompanying schedule of expenditures of federal awards is presented in accordance with the requirements by Title 2 U.S. Code of Federal Regulations (“CFR”) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”), on the accrual basis of accounting consistent with the basis of accounting used by the College in the preparation of its financial statements. Therefore some amounts presented may differ from amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: N Rate Explanation: The College did not elect to utilize the 10% De Minimis election in the fiscal year June 30, 2022. During the year ended June 30, 2022, the College processed $ 277,272 of new loans under the Federal Direct Loan Program, CFDA Number 84.268.
Title: NOTE 4---SUBSEQUENT EVENTS Accounting Policies: Nature of Organization American Baptist College (the “College”) was founded in 1924. In 1971, the College became an accredited four-year undergraduate bible college. The College is an accredited member of the Commission on Accreditation of the Association for Biblical Higher Education (ABHE); approved to award the Associate of Arts, Bachelor of Arts, and Bachelor of Theology degrees. The mission statement of the College is to educate, graduate and prepare a predominantly African American student population for leadership, service and social justice in the world. The school offers a quality educational program with a liberal arts emphasis, equipping diverse students intellectually, morally, spiritually, socially, and theologically. The College offers undergraduate and graduate degree programs at its Nashville, Tennessee campus and globally on-line. Its fields of study include a mandatory divisional major in Biblical-Theological Studies and additional majors in Pastoral Studies, Christian Education or Social Sciences Basis of Presentation The accompanying schedule of expenditures of federal awards is presented in accordance with the requirements by Title 2 U.S. Code of Federal Regulations (“CFR”) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”), on the accrual basis of accounting consistent with the basis of accounting used by the College in the preparation of its financial statements. Therefore some amounts presented may differ from amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: N Rate Explanation: The College did not elect to utilize the 10% De Minimis election in the fiscal year June 30, 2022. The College has evaluated subsequent events as of November 15, 2022; the date management evaluated such events that require disclosures. November 15, 2022, is the date the Schedule was available to be issued.

Finding Details

Finding 2022-001
Identification and recording of revenues and expenses Criteria Revenues should be recorded in the period in which they are earned. Condition The College did not properly record earned grant revenue and related deferred revenue liabilities. Cause Improper reconciliation and review of revenue and related deferred liabilities allowed expenses that had previously been included in the schedule of expenditures and earned revenue to be duplicated. Effect Total revenue overstated by $578,963. This was the combination of Title IIIB revenue overstated by $797,154 and related deferred revenue liability understated by the same and FUTURE revenue understatement by $218,191 and related accrued asset by the same. Recommendation We recommend the College review and improve its policies, procedures, and controls related to the account reconciliations and review.
Finding 2022-002
Cash Management Criteria or specific requirement: 2 CFR § 200.305 Federal payment stipulates a non-federal entity must be paid in advance, provided it maintains or demonstrates the willingness to maintain both written procedures that minimize the time elapsing between the transfer of funds and disbursement by the non-Federal entity, and financial management systems that meet the standards for fund control and accountability as established in this part. Advance payments to a non-Federal entity must be limited to the minimum amounts needed and be timed to be in accordance with the actual, immediate cash requirements of the non-Federal entity in carrying out the purpose of the approved program or project. The timing and amount of advance payments must be as close as is administratively feasible to the actual disbursements by the non-Federal entity for direct program or project costs and the proportionate share of any allowable indirect costs. Interest earned amounts up to $500 per year may be retained by the non-Federal entity for administrative expense. Any additional interest earned on Federal advance payments deposited in interest-bearing accounts must be remitted annually to the Department of Health and Human Services. Condition and Context: The Title IIIB funds drawn in advance were not limited to immediate cash requirements. Cause: Due to the improper reconciliation of deferred revenue liability, although the college was drawing for immediate current payments, some of the construction related payments included in the current drawdowns had previously been obligated and included in the computation of the previous year’s expenditures and earned revenue. Effect: The School has drawn down funds above its immediate cash requirements. Questioned costs: None Recommendation The Institution follow controls to properly ensure that funds drawn have been used before drawing additional funds in order to minimize the time between receipt of funds from the granting agency and disbursement of those funds. The institution also needs to compute interest earned on advance funds and remit it to the grantor when required.
Finding 2022-001
Identification and recording of revenues and expenses Criteria Revenues should be recorded in the period in which they are earned. Condition The College did not properly record earned grant revenue and related deferred revenue liabilities. Cause Improper reconciliation and review of revenue and related deferred liabilities allowed expenses that had previously been included in the schedule of expenditures and earned revenue to be duplicated. Effect Total revenue overstated by $578,963. This was the combination of Title IIIB revenue overstated by $797,154 and related deferred revenue liability understated by the same and FUTURE revenue understatement by $218,191 and related accrued asset by the same. Recommendation We recommend the College review and improve its policies, procedures, and controls related to the account reconciliations and review.
Finding 2022-002
Cash Management Criteria or specific requirement: 2 CFR § 200.305 Federal payment stipulates a non-federal entity must be paid in advance, provided it maintains or demonstrates the willingness to maintain both written procedures that minimize the time elapsing between the transfer of funds and disbursement by the non-Federal entity, and financial management systems that meet the standards for fund control and accountability as established in this part. Advance payments to a non-Federal entity must be limited to the minimum amounts needed and be timed to be in accordance with the actual, immediate cash requirements of the non-Federal entity in carrying out the purpose of the approved program or project. The timing and amount of advance payments must be as close as is administratively feasible to the actual disbursements by the non-Federal entity for direct program or project costs and the proportionate share of any allowable indirect costs. Interest earned amounts up to $500 per year may be retained by the non-Federal entity for administrative expense. Any additional interest earned on Federal advance payments deposited in interest-bearing accounts must be remitted annually to the Department of Health and Human Services. Condition and Context: The Title IIIB funds drawn in advance were not limited to immediate cash requirements. Cause: Due to the improper reconciliation of deferred revenue liability, although the college was drawing for immediate current payments, some of the construction related payments included in the current drawdowns had previously been obligated and included in the computation of the previous year’s expenditures and earned revenue. Effect: The School has drawn down funds above its immediate cash requirements. Questioned costs: None Recommendation The Institution follow controls to properly ensure that funds drawn have been used before drawing additional funds in order to minimize the time between receipt of funds from the granting agency and disbursement of those funds. The institution also needs to compute interest earned on advance funds and remit it to the grantor when required.