FAC Explorer

Audit 32302

FY End
2022-05-31
Total Expended
$33.88M
Findings
4
Programs
9
Organization: Anderson University and Subsidiary (SC)
Year: 2022 Accepted: 2022-10-30
Auditor: Capincrouse LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
41462 2022-001 Material Weakness - N
41463 2022-001 Material Weakness - N
617904 2022-001 Material Weakness - N
617905 2022-001 Material Weakness - N

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $24.06M Yes 1
84.063 Federal Pell Grant Program $3.25M Yes 1
84.425 Covid-19 Education Stabilization Fund Heerf - Student Aid Portion $3.08M Yes 0
84.425 Covid-19 Education Stabilization Fund Heerf - Institutional Portion $1.78M Yes 0
84.038 Federal Perkins Loan Program $1.29M Yes 0
84.033 Federal Work-Study Program $234,519 Yes 0
84.007 Federal Supplemental Educational Opportunity Grants $117,723 Yes 0
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $47,150 Yes 0
66.818 Brownfields Assessment and Cleanup Cooperative Agreements $20,500 - 0

Contacts

Name Title Type
MHZ5YM6YJ2C1 Victoria Pierce Auditee
8642312000 Rachel McMichael, CPA Auditor
No contacts on file

Notes to SEFA

Title: RELATIONSHIP TO CONSOLIDATED FINANCIAL STATEMENTS Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Anderson University and Subsidiary (University) under programs of the federal government for the year ending May 31, 2022. The information in the schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of, the basic consolidated financial statements. Expenditures in 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. Negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. If the University is required to match certain federal assistance, as defined by the grant agreements, no such matching has been included as expenditures in the schedule. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. See table in SEFA Note 3.
Title: SUBRECIPIENTS, NON-CASH ASSISTANCE, FEDERAL INSURANCE, LOANS, AND LOAN GUAR Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Anderson University and Subsidiary (University) under programs of the federal government for the year ending May 31, 2022. The information in the schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of, the basic consolidated financial statements. Expenditures in 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. Negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. If the University is required to match certain federal assistance, as defined by the grant agreements, no such matching has been included as expenditures in the schedule. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. The University did not provide any federal funds to subrecipients nor did they receive any federal non-cash assistance, insurance, loans, or loan guarantees.
Title: FEDERAL PERKINS LOAN PROGRAM Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Anderson University and Subsidiary (University) under programs of the federal government for the year ending May 31, 2022. The information in the schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of, the basic consolidated financial statements. Expenditures in 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. Negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. If the University is required to match certain federal assistance, as defined by the grant agreements, no such matching has been included as expenditures in the schedule. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. See table in SEFA Note 5.

Finding Details

Finding 2022-001
Return of Title IV (R2T4) Calculations Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2021-22 Financial Aid Year Condition: When students withdrew either officially or unofficially, the University did not always return unearned Title IV aid timely due to late dates of determination. Additionally, there were several returns with the wrong information used in the calculation, causing the wrong amounts to be returned to Title IV. Criteria: 34 CFR 668.22 Questioned Costs: $3,257 Context: Out of 15 students tested for timely returns, there were 4 students who had a date of determination beyond 14 days. These delays resulted in 3 students with returns of Title IV funds totaling $5,597 ranging from 8 to 246 days late. Additionally, out of 15 students tested for proper R2T4 calculation, there were 2 students that had an incorrect R2T4 calculation. One was due to the wrong number of days in the term in the calculation, resulting in the wrong amount of funds returned. The other error was due to the student not meeting a modular withdrawal exemption, therefore, there should have had a return made. However, the University did not complete an R2T4 until the audit. The total calculation errors resulted in an excess of $23 returned that was not necessary. Between the late returns and the calculation errors, total questioned costs were $3,257. All errors were corrected during the course of the audit. Cause: Due to the complexity of the new modular regulations and delays from other offices, the University was not able to comply with Title IV regulations for timely and accurate returns. Effect: Noncompliance with new R2T4 regulations regarding withdrawals from modular programs, inaccurate amount returned, and late return of funds to Title IV. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend an individual in financial aid with the appropriate level of experience periodically review modular students? R2T4 calculations and returns to help ensure that internal controls over such process can operate effectively and achieve compliance. Additionally, we recommend the University work with other University offices to review Title IV regulations for attendance taking schools to work to achieve compliance on the timeliness of returns to Title IV. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2022-001
Return of Title IV (R2T4) Calculations Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2021-22 Financial Aid Year Condition: When students withdrew either officially or unofficially, the University did not always return unearned Title IV aid timely due to late dates of determination. Additionally, there were several returns with the wrong information used in the calculation, causing the wrong amounts to be returned to Title IV. Criteria: 34 CFR 668.22 Questioned Costs: $3,257 Context: Out of 15 students tested for timely returns, there were 4 students who had a date of determination beyond 14 days. These delays resulted in 3 students with returns of Title IV funds totaling $5,597 ranging from 8 to 246 days late. Additionally, out of 15 students tested for proper R2T4 calculation, there were 2 students that had an incorrect R2T4 calculation. One was due to the wrong number of days in the term in the calculation, resulting in the wrong amount of funds returned. The other error was due to the student not meeting a modular withdrawal exemption, therefore, there should have had a return made. However, the University did not complete an R2T4 until the audit. The total calculation errors resulted in an excess of $23 returned that was not necessary. Between the late returns and the calculation errors, total questioned costs were $3,257. All errors were corrected during the course of the audit. Cause: Due to the complexity of the new modular regulations and delays from other offices, the University was not able to comply with Title IV regulations for timely and accurate returns. Effect: Noncompliance with new R2T4 regulations regarding withdrawals from modular programs, inaccurate amount returned, and late return of funds to Title IV. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend an individual in financial aid with the appropriate level of experience periodically review modular students? R2T4 calculations and returns to help ensure that internal controls over such process can operate effectively and achieve compliance. Additionally, we recommend the University work with other University offices to review Title IV regulations for attendance taking schools to work to achieve compliance on the timeliness of returns to Title IV. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2022-001
Return of Title IV (R2T4) Calculations Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2021-22 Financial Aid Year Condition: When students withdrew either officially or unofficially, the University did not always return unearned Title IV aid timely due to late dates of determination. Additionally, there were several returns with the wrong information used in the calculation, causing the wrong amounts to be returned to Title IV. Criteria: 34 CFR 668.22 Questioned Costs: $3,257 Context: Out of 15 students tested for timely returns, there were 4 students who had a date of determination beyond 14 days. These delays resulted in 3 students with returns of Title IV funds totaling $5,597 ranging from 8 to 246 days late. Additionally, out of 15 students tested for proper R2T4 calculation, there were 2 students that had an incorrect R2T4 calculation. One was due to the wrong number of days in the term in the calculation, resulting in the wrong amount of funds returned. The other error was due to the student not meeting a modular withdrawal exemption, therefore, there should have had a return made. However, the University did not complete an R2T4 until the audit. The total calculation errors resulted in an excess of $23 returned that was not necessary. Between the late returns and the calculation errors, total questioned costs were $3,257. All errors were corrected during the course of the audit. Cause: Due to the complexity of the new modular regulations and delays from other offices, the University was not able to comply with Title IV regulations for timely and accurate returns. Effect: Noncompliance with new R2T4 regulations regarding withdrawals from modular programs, inaccurate amount returned, and late return of funds to Title IV. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend an individual in financial aid with the appropriate level of experience periodically review modular students? R2T4 calculations and returns to help ensure that internal controls over such process can operate effectively and achieve compliance. Additionally, we recommend the University work with other University offices to review Title IV regulations for attendance taking schools to work to achieve compliance on the timeliness of returns to Title IV. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2022-001
Return of Title IV (R2T4) Calculations Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2021-22 Financial Aid Year Condition: When students withdrew either officially or unofficially, the University did not always return unearned Title IV aid timely due to late dates of determination. Additionally, there were several returns with the wrong information used in the calculation, causing the wrong amounts to be returned to Title IV. Criteria: 34 CFR 668.22 Questioned Costs: $3,257 Context: Out of 15 students tested for timely returns, there were 4 students who had a date of determination beyond 14 days. These delays resulted in 3 students with returns of Title IV funds totaling $5,597 ranging from 8 to 246 days late. Additionally, out of 15 students tested for proper R2T4 calculation, there were 2 students that had an incorrect R2T4 calculation. One was due to the wrong number of days in the term in the calculation, resulting in the wrong amount of funds returned. The other error was due to the student not meeting a modular withdrawal exemption, therefore, there should have had a return made. However, the University did not complete an R2T4 until the audit. The total calculation errors resulted in an excess of $23 returned that was not necessary. Between the late returns and the calculation errors, total questioned costs were $3,257. All errors were corrected during the course of the audit. Cause: Due to the complexity of the new modular regulations and delays from other offices, the University was not able to comply with Title IV regulations for timely and accurate returns. Effect: Noncompliance with new R2T4 regulations regarding withdrawals from modular programs, inaccurate amount returned, and late return of funds to Title IV. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend an individual in financial aid with the appropriate level of experience periodically review modular students? R2T4 calculations and returns to help ensure that internal controls over such process can operate effectively and achieve compliance. Additionally, we recommend the University work with other University offices to review Title IV regulations for attendance taking schools to work to achieve compliance on the timeliness of returns to Title IV. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.