FAC Explorer

Audit 318153

FY End
2024-05-31
Total Expended
$1.05M
Findings
14
Programs
4
Organization: Lincoln Christian University (IL)
Year: 2024 Accepted: 2024-08-29
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
485405 2024-001 - - P
485406 2024-002 - Yes P
485407 2024-001 - - P
485408 2024-002 - Yes P
485409 2024-001 - - P
485410 2024-002 - Yes P
485411 2024-001 - - P
1061847 2024-001 - - P
1061848 2024-002 - Yes P
1061849 2024-001 - - P
1061850 2024-002 - Yes P
1061851 2024-001 - - P
1061852 2024-002 - Yes P
1061853 2024-001 - - P

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $538,789 Yes 2
84.038 Federal Perkins Loan Program $430,239 Yes 1
84.063 Federal Pell Grants $68,167 Yes 2
84.007 Federal Supplemental Educational Opportunity Grant Program $15,164 Yes 2

Contacts

Name Title Type
VYQDEQZ5JH51 Danielle Fields Auditee
2177323168 Kyla Greenhoe Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 BASIS OF PRESENTATION Accounting Policies: NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the schedule of expenditures of federal awards 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. Lincoln Christian University has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: Lincoln Christian University has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal grant activity of Lincoln Christian University under programs of the federal government for the year ended May 31, 2024. 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 Lincoln Christian University, it is not intended to and does not present the financial position, changes in net assets, or cash flows Lincoln Christian University.
Title: NOTE 3 FEDERAL STUDENT LOAN PROGRAM Accounting Policies: NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the schedule of expenditures of federal awards 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. Lincoln Christian University has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: Lincoln Christian University has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The federal student loan programs listed subsequently are administered directly by Lincoln, and balances and transactions relating to these programs are included in Lincoln Christian University’s basic 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 of expenditures of federal awards. The balance of loans outstanding at May 31, 2024 consists of: Federal Perkins Loan Program ALN: 84.038 Amount Outstanding: $401,641
Title: NOTE 4 ADDITIONAL INFORMATION Accounting Policies: NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the schedule of expenditures of federal awards 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. Lincoln Christian University has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: Lincoln Christian University has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. As of and during the year ended May 31, 2024, the University did not receive any noncash federal assistance, federal insurance, or federal loans or loan guarantees.

Finding Details

Finding 2024-001
2024 – 001 Material Audit Adjustments and Financial Statement Preparation Type of Finding: Material Weakness in Internal Control over Financial Reporting Condition: During the course of the audit, we proposed significant audit adjustments. In addition, University does not have an internal control policy in place over annual financial reporting that would enable management to prepare its annual financial statements and related footnote disclosures to ensure they are complete and presented in accordance with GAAP. Criteria or specific requirement: Management is responsible for the accuracy and completeness of all financial records and related information, including adjusting the financial statements to correct material misstatements and produce accurate financial statements on a timely basis. Management is also responsible for establishing and maintaining internal controls for the fair presentation in the financial statements, including disclosures in accordance with GAAP. Effect: Material adjustments were proposed and subsequently recorded by management. The lack of sufficient controls over year-end reporting increases the likelihood that a material misstatement would not be prevented or detected. Cause: The University has a limited number of personnel with limited financial reporting experience. The University relied on the audit firm to prepare the annual financial statements and related footnote disclosures, in particular those that relate to the presentation of the discontinued operations accounting. However, they have reviewed and approved the annual financial statements and the related footnote disclosures. Recommendation: We recommend management enhance the internal controls over financial reporting. Year-end closing procedures should be expanded to ensure all transactions have been accounted for, appropriate accounting standards have been applied. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2024-002
2024-002 – Financial Aid Awarding Process Federal Agency: U.S. Department of Education Federal Program Name: Student Financial Assistance Cluster Assistance Listing Number: 84.268 – Federal Direct Loan Program, 84.063 – Federal Pell Grant Program, 84.007 – Federal Supplemental Educational Opportunity Grant Program, 84.033 – Federal Work-Study Program Federal Award Identification Number and Year: DL – P268K231357 (1/1/22-7/27/44), Pell – P063P221357 (3/23/22-8/31/28), SEOG – P007A221203 (3/25/22-8/31/28), FWS – P033A221203 (3/25/22-8/31/28) Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: June 1, 2023 to May 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: The student financial aid (SFA) file must be properly reviewed and approved by the SFA department as part of their awarding process. Condition: During our eligibility testing, we noted that the SFA Director is running the acceptance report throughout the semester for direct loans. However, this review is not documented to know that it is actually occurring, as well as the results of that review at each point in time. Questioned Costs: None. Context: There is no documented review over the process for SFA award acceptance in the online portal. Cause: There is only one full time employee remaining in the SFA office. Effect: Errors could go undetected in the awarding process. Repeat Finding: Yes – 2023-001 Recommendation: We recommend the review process for awarding be documented and retained as support for the review and approval process. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2024-001
2024 – 001 Material Audit Adjustments and Financial Statement Preparation Type of Finding: Material Weakness in Internal Control over Financial Reporting Condition: During the course of the audit, we proposed significant audit adjustments. In addition, University does not have an internal control policy in place over annual financial reporting that would enable management to prepare its annual financial statements and related footnote disclosures to ensure they are complete and presented in accordance with GAAP. Criteria or specific requirement: Management is responsible for the accuracy and completeness of all financial records and related information, including adjusting the financial statements to correct material misstatements and produce accurate financial statements on a timely basis. Management is also responsible for establishing and maintaining internal controls for the fair presentation in the financial statements, including disclosures in accordance with GAAP. Effect: Material adjustments were proposed and subsequently recorded by management. The lack of sufficient controls over year-end reporting increases the likelihood that a material misstatement would not be prevented or detected. Cause: The University has a limited number of personnel with limited financial reporting experience. The University relied on the audit firm to prepare the annual financial statements and related footnote disclosures, in particular those that relate to the presentation of the discontinued operations accounting. However, they have reviewed and approved the annual financial statements and the related footnote disclosures. Recommendation: We recommend management enhance the internal controls over financial reporting. Year-end closing procedures should be expanded to ensure all transactions have been accounted for, appropriate accounting standards have been applied. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2024-002
2024-002 – Financial Aid Awarding Process Federal Agency: U.S. Department of Education Federal Program Name: Student Financial Assistance Cluster Assistance Listing Number: 84.268 – Federal Direct Loan Program, 84.063 – Federal Pell Grant Program, 84.007 – Federal Supplemental Educational Opportunity Grant Program, 84.033 – Federal Work-Study Program Federal Award Identification Number and Year: DL – P268K231357 (1/1/22-7/27/44), Pell – P063P221357 (3/23/22-8/31/28), SEOG – P007A221203 (3/25/22-8/31/28), FWS – P033A221203 (3/25/22-8/31/28) Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: June 1, 2023 to May 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: The student financial aid (SFA) file must be properly reviewed and approved by the SFA department as part of their awarding process. Condition: During our eligibility testing, we noted that the SFA Director is running the acceptance report throughout the semester for direct loans. However, this review is not documented to know that it is actually occurring, as well as the results of that review at each point in time. Questioned Costs: None. Context: There is no documented review over the process for SFA award acceptance in the online portal. Cause: There is only one full time employee remaining in the SFA office. Effect: Errors could go undetected in the awarding process. Repeat Finding: Yes – 2023-001 Recommendation: We recommend the review process for awarding be documented and retained as support for the review and approval process. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2024-001
2024 – 001 Material Audit Adjustments and Financial Statement Preparation Type of Finding: Material Weakness in Internal Control over Financial Reporting Condition: During the course of the audit, we proposed significant audit adjustments. In addition, University does not have an internal control policy in place over annual financial reporting that would enable management to prepare its annual financial statements and related footnote disclosures to ensure they are complete and presented in accordance with GAAP. Criteria or specific requirement: Management is responsible for the accuracy and completeness of all financial records and related information, including adjusting the financial statements to correct material misstatements and produce accurate financial statements on a timely basis. Management is also responsible for establishing and maintaining internal controls for the fair presentation in the financial statements, including disclosures in accordance with GAAP. Effect: Material adjustments were proposed and subsequently recorded by management. The lack of sufficient controls over year-end reporting increases the likelihood that a material misstatement would not be prevented or detected. Cause: The University has a limited number of personnel with limited financial reporting experience. The University relied on the audit firm to prepare the annual financial statements and related footnote disclosures, in particular those that relate to the presentation of the discontinued operations accounting. However, they have reviewed and approved the annual financial statements and the related footnote disclosures. Recommendation: We recommend management enhance the internal controls over financial reporting. Year-end closing procedures should be expanded to ensure all transactions have been accounted for, appropriate accounting standards have been applied. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2024-002
2024-002 – Financial Aid Awarding Process Federal Agency: U.S. Department of Education Federal Program Name: Student Financial Assistance Cluster Assistance Listing Number: 84.268 – Federal Direct Loan Program, 84.063 – Federal Pell Grant Program, 84.007 – Federal Supplemental Educational Opportunity Grant Program, 84.033 – Federal Work-Study Program Federal Award Identification Number and Year: DL – P268K231357 (1/1/22-7/27/44), Pell – P063P221357 (3/23/22-8/31/28), SEOG – P007A221203 (3/25/22-8/31/28), FWS – P033A221203 (3/25/22-8/31/28) Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: June 1, 2023 to May 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: The student financial aid (SFA) file must be properly reviewed and approved by the SFA department as part of their awarding process. Condition: During our eligibility testing, we noted that the SFA Director is running the acceptance report throughout the semester for direct loans. However, this review is not documented to know that it is actually occurring, as well as the results of that review at each point in time. Questioned Costs: None. Context: There is no documented review over the process for SFA award acceptance in the online portal. Cause: There is only one full time employee remaining in the SFA office. Effect: Errors could go undetected in the awarding process. Repeat Finding: Yes – 2023-001 Recommendation: We recommend the review process for awarding be documented and retained as support for the review and approval process. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2024-001
2024 – 001 Material Audit Adjustments and Financial Statement Preparation Type of Finding: Material Weakness in Internal Control over Financial Reporting Condition: During the course of the audit, we proposed significant audit adjustments. In addition, University does not have an internal control policy in place over annual financial reporting that would enable management to prepare its annual financial statements and related footnote disclosures to ensure they are complete and presented in accordance with GAAP. Criteria or specific requirement: Management is responsible for the accuracy and completeness of all financial records and related information, including adjusting the financial statements to correct material misstatements and produce accurate financial statements on a timely basis. Management is also responsible for establishing and maintaining internal controls for the fair presentation in the financial statements, including disclosures in accordance with GAAP. Effect: Material adjustments were proposed and subsequently recorded by management. The lack of sufficient controls over year-end reporting increases the likelihood that a material misstatement would not be prevented or detected. Cause: The University has a limited number of personnel with limited financial reporting experience. The University relied on the audit firm to prepare the annual financial statements and related footnote disclosures, in particular those that relate to the presentation of the discontinued operations accounting. However, they have reviewed and approved the annual financial statements and the related footnote disclosures. Recommendation: We recommend management enhance the internal controls over financial reporting. Year-end closing procedures should be expanded to ensure all transactions have been accounted for, appropriate accounting standards have been applied. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2024-001
2024 – 001 Material Audit Adjustments and Financial Statement Preparation Type of Finding: Material Weakness in Internal Control over Financial Reporting Condition: During the course of the audit, we proposed significant audit adjustments. In addition, University does not have an internal control policy in place over annual financial reporting that would enable management to prepare its annual financial statements and related footnote disclosures to ensure they are complete and presented in accordance with GAAP. Criteria or specific requirement: Management is responsible for the accuracy and completeness of all financial records and related information, including adjusting the financial statements to correct material misstatements and produce accurate financial statements on a timely basis. Management is also responsible for establishing and maintaining internal controls for the fair presentation in the financial statements, including disclosures in accordance with GAAP. Effect: Material adjustments were proposed and subsequently recorded by management. The lack of sufficient controls over year-end reporting increases the likelihood that a material misstatement would not be prevented or detected. Cause: The University has a limited number of personnel with limited financial reporting experience. The University relied on the audit firm to prepare the annual financial statements and related footnote disclosures, in particular those that relate to the presentation of the discontinued operations accounting. However, they have reviewed and approved the annual financial statements and the related footnote disclosures. Recommendation: We recommend management enhance the internal controls over financial reporting. Year-end closing procedures should be expanded to ensure all transactions have been accounted for, appropriate accounting standards have been applied. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2024-002
2024-002 – Financial Aid Awarding Process Federal Agency: U.S. Department of Education Federal Program Name: Student Financial Assistance Cluster Assistance Listing Number: 84.268 – Federal Direct Loan Program, 84.063 – Federal Pell Grant Program, 84.007 – Federal Supplemental Educational Opportunity Grant Program, 84.033 – Federal Work-Study Program Federal Award Identification Number and Year: DL – P268K231357 (1/1/22-7/27/44), Pell – P063P221357 (3/23/22-8/31/28), SEOG – P007A221203 (3/25/22-8/31/28), FWS – P033A221203 (3/25/22-8/31/28) Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: June 1, 2023 to May 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: The student financial aid (SFA) file must be properly reviewed and approved by the SFA department as part of their awarding process. Condition: During our eligibility testing, we noted that the SFA Director is running the acceptance report throughout the semester for direct loans. However, this review is not documented to know that it is actually occurring, as well as the results of that review at each point in time. Questioned Costs: None. Context: There is no documented review over the process for SFA award acceptance in the online portal. Cause: There is only one full time employee remaining in the SFA office. Effect: Errors could go undetected in the awarding process. Repeat Finding: Yes – 2023-001 Recommendation: We recommend the review process for awarding be documented and retained as support for the review and approval process. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2024-001
2024 – 001 Material Audit Adjustments and Financial Statement Preparation Type of Finding: Material Weakness in Internal Control over Financial Reporting Condition: During the course of the audit, we proposed significant audit adjustments. In addition, University does not have an internal control policy in place over annual financial reporting that would enable management to prepare its annual financial statements and related footnote disclosures to ensure they are complete and presented in accordance with GAAP. Criteria or specific requirement: Management is responsible for the accuracy and completeness of all financial records and related information, including adjusting the financial statements to correct material misstatements and produce accurate financial statements on a timely basis. Management is also responsible for establishing and maintaining internal controls for the fair presentation in the financial statements, including disclosures in accordance with GAAP. Effect: Material adjustments were proposed and subsequently recorded by management. The lack of sufficient controls over year-end reporting increases the likelihood that a material misstatement would not be prevented or detected. Cause: The University has a limited number of personnel with limited financial reporting experience. The University relied on the audit firm to prepare the annual financial statements and related footnote disclosures, in particular those that relate to the presentation of the discontinued operations accounting. However, they have reviewed and approved the annual financial statements and the related footnote disclosures. Recommendation: We recommend management enhance the internal controls over financial reporting. Year-end closing procedures should be expanded to ensure all transactions have been accounted for, appropriate accounting standards have been applied. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2024-002
2024-002 – Financial Aid Awarding Process Federal Agency: U.S. Department of Education Federal Program Name: Student Financial Assistance Cluster Assistance Listing Number: 84.268 – Federal Direct Loan Program, 84.063 – Federal Pell Grant Program, 84.007 – Federal Supplemental Educational Opportunity Grant Program, 84.033 – Federal Work-Study Program Federal Award Identification Number and Year: DL – P268K231357 (1/1/22-7/27/44), Pell – P063P221357 (3/23/22-8/31/28), SEOG – P007A221203 (3/25/22-8/31/28), FWS – P033A221203 (3/25/22-8/31/28) Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: June 1, 2023 to May 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: The student financial aid (SFA) file must be properly reviewed and approved by the SFA department as part of their awarding process. Condition: During our eligibility testing, we noted that the SFA Director is running the acceptance report throughout the semester for direct loans. However, this review is not documented to know that it is actually occurring, as well as the results of that review at each point in time. Questioned Costs: None. Context: There is no documented review over the process for SFA award acceptance in the online portal. Cause: There is only one full time employee remaining in the SFA office. Effect: Errors could go undetected in the awarding process. Repeat Finding: Yes – 2023-001 Recommendation: We recommend the review process for awarding be documented and retained as support for the review and approval process. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2024-001
2024 – 001 Material Audit Adjustments and Financial Statement Preparation Type of Finding: Material Weakness in Internal Control over Financial Reporting Condition: During the course of the audit, we proposed significant audit adjustments. In addition, University does not have an internal control policy in place over annual financial reporting that would enable management to prepare its annual financial statements and related footnote disclosures to ensure they are complete and presented in accordance with GAAP. Criteria or specific requirement: Management is responsible for the accuracy and completeness of all financial records and related information, including adjusting the financial statements to correct material misstatements and produce accurate financial statements on a timely basis. Management is also responsible for establishing and maintaining internal controls for the fair presentation in the financial statements, including disclosures in accordance with GAAP. Effect: Material adjustments were proposed and subsequently recorded by management. The lack of sufficient controls over year-end reporting increases the likelihood that a material misstatement would not be prevented or detected. Cause: The University has a limited number of personnel with limited financial reporting experience. The University relied on the audit firm to prepare the annual financial statements and related footnote disclosures, in particular those that relate to the presentation of the discontinued operations accounting. However, they have reviewed and approved the annual financial statements and the related footnote disclosures. Recommendation: We recommend management enhance the internal controls over financial reporting. Year-end closing procedures should be expanded to ensure all transactions have been accounted for, appropriate accounting standards have been applied. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2024-002
2024-002 – Financial Aid Awarding Process Federal Agency: U.S. Department of Education Federal Program Name: Student Financial Assistance Cluster Assistance Listing Number: 84.268 – Federal Direct Loan Program, 84.063 – Federal Pell Grant Program, 84.007 – Federal Supplemental Educational Opportunity Grant Program, 84.033 – Federal Work-Study Program Federal Award Identification Number and Year: DL – P268K231357 (1/1/22-7/27/44), Pell – P063P221357 (3/23/22-8/31/28), SEOG – P007A221203 (3/25/22-8/31/28), FWS – P033A221203 (3/25/22-8/31/28) Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: June 1, 2023 to May 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: The student financial aid (SFA) file must be properly reviewed and approved by the SFA department as part of their awarding process. Condition: During our eligibility testing, we noted that the SFA Director is running the acceptance report throughout the semester for direct loans. However, this review is not documented to know that it is actually occurring, as well as the results of that review at each point in time. Questioned Costs: None. Context: There is no documented review over the process for SFA award acceptance in the online portal. Cause: There is only one full time employee remaining in the SFA office. Effect: Errors could go undetected in the awarding process. Repeat Finding: Yes – 2023-001 Recommendation: We recommend the review process for awarding be documented and retained as support for the review and approval process. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2024-001
2024 – 001 Material Audit Adjustments and Financial Statement Preparation Type of Finding: Material Weakness in Internal Control over Financial Reporting Condition: During the course of the audit, we proposed significant audit adjustments. In addition, University does not have an internal control policy in place over annual financial reporting that would enable management to prepare its annual financial statements and related footnote disclosures to ensure they are complete and presented in accordance with GAAP. Criteria or specific requirement: Management is responsible for the accuracy and completeness of all financial records and related information, including adjusting the financial statements to correct material misstatements and produce accurate financial statements on a timely basis. Management is also responsible for establishing and maintaining internal controls for the fair presentation in the financial statements, including disclosures in accordance with GAAP. Effect: Material adjustments were proposed and subsequently recorded by management. The lack of sufficient controls over year-end reporting increases the likelihood that a material misstatement would not be prevented or detected. Cause: The University has a limited number of personnel with limited financial reporting experience. The University relied on the audit firm to prepare the annual financial statements and related footnote disclosures, in particular those that relate to the presentation of the discontinued operations accounting. However, they have reviewed and approved the annual financial statements and the related footnote disclosures. Recommendation: We recommend management enhance the internal controls over financial reporting. Year-end closing procedures should be expanded to ensure all transactions have been accounted for, appropriate accounting standards have been applied. Views of responsible officials: There is no disagreement with the audit finding.