FAC Explorer

Audit 323688

FY End
2024-06-30
Total Expended
$12.75M
Findings
8
Programs
9
Organization: John Brown University and Affiliates (AR)
Year: 2024 Accepted: 2024-10-02
Auditor: Capincrouse LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
501649 2024-001 - Yes N
501650 2024-001 - Yes N
501651 2024-002 - - N
501652 2024-002 - - N
1078091 2024-001 - Yes N
1078092 2024-001 - Yes N
1078093 2024-002 - - N
1078094 2024-002 - - N

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $9.12M Yes 2
84.063 Federal Pell Grant Program $2.45M Yes 2
84.038 Federal Perkins Loan Program $320,304 Yes 0
84.042 Trio Student Support Services $282,665 - 0
84.033 Federal Work-Study Program $149,454 Yes 0
84.425 Covid-19 Education Stabilization Fund American Rescue Plan--Elementary and Secondary School Emergencuy Relief Fund $137,653 - 0
84.007 Federal Supplemental Educational Opportunity Grants $99,187 Yes 0
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $17,603 Yes 0
43.008 Office of Stem Engagement (ostem) $15,601 - 0

Contacts

Name Title Type
E8JMLPBES6E6 David Burney Auditee
4795247427 Dan Campbell, 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 John Brown University and Affiliates (University) under programs of the federal government for the year ended June 30, 2024. 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: N Rate Explanation: The auditee did not use the de minimis cost rate. See the notes to the SEFA for chart/table
Title: SUBRECIPIENTS, NON-CASH ASSISTANCE, FEDERAL INSURANCE, LOANS, AND LOAN GUARANTEES Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of John Brown University and Affiliates (University) under programs of the federal government for the year ended June 30, 2024. 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: N Rate Explanation: The auditee did not use 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 John Brown University and Affiliates (University) under programs of the federal government for the year ended June 30, 2024. 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: N Rate Explanation: The auditee did not use the de minimis cost rate. See the notes to the SEFA for chart/table
Title: INSTITUTION ELIGIBILITY LIMITATIONS IN ACCORDANCE WITH 34 CFR 600.7(a)1 Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of John Brown University and Affiliates (University) under programs of the federal government for the year ended June 30, 2024. 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: N Rate Explanation: The auditee did not use the de minimis cost rate. To maintain institutional eligibility to participate in the Department of Education’s Title IV financial aid programs, the University is required to comply with 34 CFR 600.7(a)1 which limits the number of correspondence courses, the number of students enrolled in correspondence courses, the number of incarcerated students enrolled and the number of students enrolled without a high school diploma or recognized equivalent. As part of the audit procedures, compliance with these limitations was tested. No non-compliance with the requirements was noted.

Finding Details

Finding 2024-001
Untimely Returns of Title IV Funds (R2T4) DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: When students withdrew either officially or unofficially from modular programs, the University did not always return unearned Title IV aid timely. Criteria: 34 CFR 668.22 Questioned Costs: $0 Context: Out of 20 students tested for timely and accurate R2T4’s, 1 student in a modular program had their unearned Title IV aid totaling $2,242 returned 7 days late. The University reviewed all modular student withdrawals and identified 2 other students with late returns in the amounts of $2,292 and $675, 91 to 345 days late, respectively. Cause: As part of the financial aid office’s internal review process, the 3 students were identified as needing returns and the returns were done promptly. However, the notification of on-line, modular students ceasing attendance was not communicated timely to the financial aid office causing the returns to be late. Effect: Noncompliance with R2T4 regulations regarding timely returns and withdrawals from modular programs. Identification as repeat finding, if applicable: Yes, 2023-001 Recommendation: We recommend that the University continue to work with the registrar’s office to provide timely and accurate dates of last attendance so that return of Title IV funds can be completed within the timeframe required by the Department of Education. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-001
Untimely Returns of Title IV Funds (R2T4) DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: When students withdrew either officially or unofficially from modular programs, the University did not always return unearned Title IV aid timely. Criteria: 34 CFR 668.22 Questioned Costs: $0 Context: Out of 20 students tested for timely and accurate R2T4’s, 1 student in a modular program had their unearned Title IV aid totaling $2,242 returned 7 days late. The University reviewed all modular student withdrawals and identified 2 other students with late returns in the amounts of $2,292 and $675, 91 to 345 days late, respectively. Cause: As part of the financial aid office’s internal review process, the 3 students were identified as needing returns and the returns were done promptly. However, the notification of on-line, modular students ceasing attendance was not communicated timely to the financial aid office causing the returns to be late. Effect: Noncompliance with R2T4 regulations regarding timely returns and withdrawals from modular programs. Identification as repeat finding, if applicable: Yes, 2023-001 Recommendation: We recommend that the University continue to work with the registrar’s office to provide timely and accurate dates of last attendance so that return of Title IV funds can be completed within the timeframe required by the Department of Education. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-002
Inaccurate Enrollment Reporting to National Student Loan Data System (NSLDS) DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: The University did not report enrollment information to the National Student Loan Data System (NSLDS) in a timely and accurate manner. Criteria: 34 CFR 690.83(b) and 34 CFR 685.309 Questioned Costs: $0 Context: Out of 76 students tested for proper NSLDS enrollment status, 1 student who officially withdrew in the spring of 2024 was still being reported as full time. 1 student was reported as “no records found” but has federal direct loan borrowing at the University. 1 student withdrew in 2023 but was not reported as re-enrolled in 2024 even though the student attended 3 terms in the year before withdrawing again. Cause: System errors Effect: Inaccurate reporting can impact a student’s loan grace period in school deferment eligibility, beginning loan repayments, appropriate interest charges, etc. Identification as repeat finding, if applicable: N/A Recommendation: We recommend the student financial aid team and registrar work together, potentially including information technology, to ensure the appropriate fields are captured from the system for NSLDS enrollment reporting. We also recommend spot checking students who withdraw officially or unofficially to ensure that they are reported timely and accurately. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-002
Inaccurate Enrollment Reporting to National Student Loan Data System (NSLDS) DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: The University did not report enrollment information to the National Student Loan Data System (NSLDS) in a timely and accurate manner. Criteria: 34 CFR 690.83(b) and 34 CFR 685.309 Questioned Costs: $0 Context: Out of 76 students tested for proper NSLDS enrollment status, 1 student who officially withdrew in the spring of 2024 was still being reported as full time. 1 student was reported as “no records found” but has federal direct loan borrowing at the University. 1 student withdrew in 2023 but was not reported as re-enrolled in 2024 even though the student attended 3 terms in the year before withdrawing again. Cause: System errors Effect: Inaccurate reporting can impact a student’s loan grace period in school deferment eligibility, beginning loan repayments, appropriate interest charges, etc. Identification as repeat finding, if applicable: N/A Recommendation: We recommend the student financial aid team and registrar work together, potentially including information technology, to ensure the appropriate fields are captured from the system for NSLDS enrollment reporting. We also recommend spot checking students who withdraw officially or unofficially to ensure that they are reported timely and accurately. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-001
Untimely Returns of Title IV Funds (R2T4) DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: When students withdrew either officially or unofficially from modular programs, the University did not always return unearned Title IV aid timely. Criteria: 34 CFR 668.22 Questioned Costs: $0 Context: Out of 20 students tested for timely and accurate R2T4’s, 1 student in a modular program had their unearned Title IV aid totaling $2,242 returned 7 days late. The University reviewed all modular student withdrawals and identified 2 other students with late returns in the amounts of $2,292 and $675, 91 to 345 days late, respectively. Cause: As part of the financial aid office’s internal review process, the 3 students were identified as needing returns and the returns were done promptly. However, the notification of on-line, modular students ceasing attendance was not communicated timely to the financial aid office causing the returns to be late. Effect: Noncompliance with R2T4 regulations regarding timely returns and withdrawals from modular programs. Identification as repeat finding, if applicable: Yes, 2023-001 Recommendation: We recommend that the University continue to work with the registrar’s office to provide timely and accurate dates of last attendance so that return of Title IV funds can be completed within the timeframe required by the Department of Education. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-001
Untimely Returns of Title IV Funds (R2T4) DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: When students withdrew either officially or unofficially from modular programs, the University did not always return unearned Title IV aid timely. Criteria: 34 CFR 668.22 Questioned Costs: $0 Context: Out of 20 students tested for timely and accurate R2T4’s, 1 student in a modular program had their unearned Title IV aid totaling $2,242 returned 7 days late. The University reviewed all modular student withdrawals and identified 2 other students with late returns in the amounts of $2,292 and $675, 91 to 345 days late, respectively. Cause: As part of the financial aid office’s internal review process, the 3 students were identified as needing returns and the returns were done promptly. However, the notification of on-line, modular students ceasing attendance was not communicated timely to the financial aid office causing the returns to be late. Effect: Noncompliance with R2T4 regulations regarding timely returns and withdrawals from modular programs. Identification as repeat finding, if applicable: Yes, 2023-001 Recommendation: We recommend that the University continue to work with the registrar’s office to provide timely and accurate dates of last attendance so that return of Title IV funds can be completed within the timeframe required by the Department of Education. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-002
Inaccurate Enrollment Reporting to National Student Loan Data System (NSLDS) DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: The University did not report enrollment information to the National Student Loan Data System (NSLDS) in a timely and accurate manner. Criteria: 34 CFR 690.83(b) and 34 CFR 685.309 Questioned Costs: $0 Context: Out of 76 students tested for proper NSLDS enrollment status, 1 student who officially withdrew in the spring of 2024 was still being reported as full time. 1 student was reported as “no records found” but has federal direct loan borrowing at the University. 1 student withdrew in 2023 but was not reported as re-enrolled in 2024 even though the student attended 3 terms in the year before withdrawing again. Cause: System errors Effect: Inaccurate reporting can impact a student’s loan grace period in school deferment eligibility, beginning loan repayments, appropriate interest charges, etc. Identification as repeat finding, if applicable: N/A Recommendation: We recommend the student financial aid team and registrar work together, potentially including information technology, to ensure the appropriate fields are captured from the system for NSLDS enrollment reporting. We also recommend spot checking students who withdraw officially or unofficially to ensure that they are reported timely and accurately. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-002
Inaccurate Enrollment Reporting to National Student Loan Data System (NSLDS) DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: The University did not report enrollment information to the National Student Loan Data System (NSLDS) in a timely and accurate manner. Criteria: 34 CFR 690.83(b) and 34 CFR 685.309 Questioned Costs: $0 Context: Out of 76 students tested for proper NSLDS enrollment status, 1 student who officially withdrew in the spring of 2024 was still being reported as full time. 1 student was reported as “no records found” but has federal direct loan borrowing at the University. 1 student withdrew in 2023 but was not reported as re-enrolled in 2024 even though the student attended 3 terms in the year before withdrawing again. Cause: System errors Effect: Inaccurate reporting can impact a student’s loan grace period in school deferment eligibility, beginning loan repayments, appropriate interest charges, etc. Identification as repeat finding, if applicable: N/A Recommendation: We recommend the student financial aid team and registrar work together, potentially including information technology, to ensure the appropriate fields are captured from the system for NSLDS enrollment reporting. We also recommend spot checking students who withdraw officially or unofficially to ensure that they are reported timely and accurately. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.