FAC Explorer

Audit 324397

FY End
2024-06-30
Total Expended
$10.59M
Findings
12
Programs
4
Organization: The Master's University & Seminary and Subsidiary (CA)
Year: 2024 Accepted: 2024-10-10
Auditor: Capincrouse LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
502359 2024-001 Significant Deficiency - N
502360 2024-001 Significant Deficiency - N
502361 2024-002 - - N
502362 2024-002 - - N
502363 2024-003 - - N
502364 2024-003 - - N
1078801 2024-001 Significant Deficiency - N
1078802 2024-001 Significant Deficiency - N
1078803 2024-002 - - N
1078804 2024-002 - - N
1078805 2024-003 - - N
1078806 2024-003 - - N

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $8.19M Yes 3
84.063 Federal Pell Grant Program $2.23M Yes 3
84.007 Federal Supplemental Educational Opportunity Grants $95,495 Yes 0
84.033 Federal Work-Study Program $79,541 Yes 0

Contacts

Name Title Type
WTM6XM98JDA9 Kenneth Piester Auditee
6613622293 Robert J. Faulk, 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 The Master’s University & Seminary and Subsidiary 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 Master’s University & Seminary and Subsidiary 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 The Master’s University & Seminary and Subsidiary 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 Master’s University & Seminary and Subsidiary 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 Master’s University & Seminary and Subsidiary did not provide any federal funds to subrecipients nor did they receive any federal non-cash assistance, insurance, loans, or loan guarantees.
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 The Master’s University & Seminary and Subsidiary 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 Master’s University & Seminary and Subsidiary 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 institution 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
Inaccurate and Untimely Return of Title IV Funds (R2T4) Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: R2T4’s were not always completed accurately or timely. Criteria: 34 CFR 668.22 Questioned Costs: $0 Context: Out of 10 withdrawals tested, 1 R2T4 was modular withdrawal was not properly calculated based on the 49% exemption, resulting in $507 of Pell being returned when the student actually earned the aid. 1 out of 10 withdrawals tested had $1,300 in Pell returned 8 days late. Cause: Both issues were in the Spring 2024 term when there was staffing turnover and challenges with the 2024-2025 FASFA rollout that required substantial staff time. Effect: Incorrect amounts of federal funding were returned. Unearned funds to return were not made within 45 days after the date of determination. Identification as repeat finding, if applicable: N/A Recommendation: We recommend an individual with appropriate return calculation knowledge review each calendar set up and ensure scheduled breaks are properly included in the calendar to align with regulations. Due to the complexity of the nonstandard term modular program R2T4 calculations, we recommend that a second review and approval of the calculation be completed as part of the R2T4 process. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-001
Inaccurate and Untimely Return of Title IV Funds (R2T4) Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: R2T4’s were not always completed accurately or timely. Criteria: 34 CFR 668.22 Questioned Costs: $0 Context: Out of 10 withdrawals tested, 1 R2T4 was modular withdrawal was not properly calculated based on the 49% exemption, resulting in $507 of Pell being returned when the student actually earned the aid. 1 out of 10 withdrawals tested had $1,300 in Pell returned 8 days late. Cause: Both issues were in the Spring 2024 term when there was staffing turnover and challenges with the 2024-2025 FASFA rollout that required substantial staff time. Effect: Incorrect amounts of federal funding were returned. Unearned funds to return were not made within 45 days after the date of determination. Identification as repeat finding, if applicable: N/A Recommendation: We recommend an individual with appropriate return calculation knowledge review each calendar set up and ensure scheduled breaks are properly included in the calendar to align with regulations. Due to the complexity of the nonstandard term modular program R2T4 calculations, we recommend that a second review and approval of the calculation be completed as part of the R2T4 process. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-002
Credit Balances Not Paid Out in 14 days DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: The Master’s University & Seminary and Subsidiary is required to pay out credit balances created by federal aid within 14 days of the balance being created. Criteria: 34 CFR 668.164(h) Questioned Costs: $0 Context: Out of 60 students tested for paying out credit balances created by disbursing Title IV funds, there were 2 students who had a credit balance not paid out timely and the Master’s University and Seminary did not have authorization from the student to hold the credit balance. They were eventually paid out or applied to the following term’s tuition and fees. Cause: While there is a process to identify and pay out Title IV credit balances timely, the reports generated but it appears that it isn’t frequent enough as some were Effect: Noncompliance with the Department of Education’s cash management regulations Identification as repeat finding, if applicable: N/A Recommendation: We recommend The Master’s University & Seminary and Subsidiary refine their process to identify credit balances created by federal aid and disburse them to students within 14 days of the balance being created and to pay out all credit balances at the end of the payment period. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-002
Credit Balances Not Paid Out in 14 days DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: The Master’s University & Seminary and Subsidiary is required to pay out credit balances created by federal aid within 14 days of the balance being created. Criteria: 34 CFR 668.164(h) Questioned Costs: $0 Context: Out of 60 students tested for paying out credit balances created by disbursing Title IV funds, there were 2 students who had a credit balance not paid out timely and the Master’s University and Seminary did not have authorization from the student to hold the credit balance. They were eventually paid out or applied to the following term’s tuition and fees. Cause: While there is a process to identify and pay out Title IV credit balances timely, the reports generated but it appears that it isn’t frequent enough as some were Effect: Noncompliance with the Department of Education’s cash management regulations Identification as repeat finding, if applicable: N/A Recommendation: We recommend The Master’s University & Seminary and Subsidiary refine their process to identify credit balances created by federal aid and disburse them to students within 14 days of the balance being created and to pay out all credit balances at the end of the payment period. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-003
Enrollment Reporting to NSLDS DEPARTMENT OF EDUCATION ALN #: 84.268 and 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 63 students tested for proper NSLDS enrollment status, 1 student who withdrew was still being reported as half-time and 2 students were reported as no record found. Cause: Reporting was sent to National Student Clearinghouse (NSC) but it did not get processed. 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: It is recommended that the client review a sample of each batch sent to the NSC to make sure the batch was successfully processed in NSLDS. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-003
Enrollment Reporting to NSLDS DEPARTMENT OF EDUCATION ALN #: 84.268 and 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 63 students tested for proper NSLDS enrollment status, 1 student who withdrew was still being reported as half-time and 2 students were reported as no record found. Cause: Reporting was sent to National Student Clearinghouse (NSC) but it did not get processed. 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: It is recommended that the client review a sample of each batch sent to the NSC to make sure the batch was successfully processed in NSLDS. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-001
Inaccurate and Untimely Return of Title IV Funds (R2T4) Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: R2T4’s were not always completed accurately or timely. Criteria: 34 CFR 668.22 Questioned Costs: $0 Context: Out of 10 withdrawals tested, 1 R2T4 was modular withdrawal was not properly calculated based on the 49% exemption, resulting in $507 of Pell being returned when the student actually earned the aid. 1 out of 10 withdrawals tested had $1,300 in Pell returned 8 days late. Cause: Both issues were in the Spring 2024 term when there was staffing turnover and challenges with the 2024-2025 FASFA rollout that required substantial staff time. Effect: Incorrect amounts of federal funding were returned. Unearned funds to return were not made within 45 days after the date of determination. Identification as repeat finding, if applicable: N/A Recommendation: We recommend an individual with appropriate return calculation knowledge review each calendar set up and ensure scheduled breaks are properly included in the calendar to align with regulations. Due to the complexity of the nonstandard term modular program R2T4 calculations, we recommend that a second review and approval of the calculation be completed as part of the R2T4 process. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-001
Inaccurate and Untimely Return of Title IV Funds (R2T4) Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: R2T4’s were not always completed accurately or timely. Criteria: 34 CFR 668.22 Questioned Costs: $0 Context: Out of 10 withdrawals tested, 1 R2T4 was modular withdrawal was not properly calculated based on the 49% exemption, resulting in $507 of Pell being returned when the student actually earned the aid. 1 out of 10 withdrawals tested had $1,300 in Pell returned 8 days late. Cause: Both issues were in the Spring 2024 term when there was staffing turnover and challenges with the 2024-2025 FASFA rollout that required substantial staff time. Effect: Incorrect amounts of federal funding were returned. Unearned funds to return were not made within 45 days after the date of determination. Identification as repeat finding, if applicable: N/A Recommendation: We recommend an individual with appropriate return calculation knowledge review each calendar set up and ensure scheduled breaks are properly included in the calendar to align with regulations. Due to the complexity of the nonstandard term modular program R2T4 calculations, we recommend that a second review and approval of the calculation be completed as part of the R2T4 process. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-002
Credit Balances Not Paid Out in 14 days DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: The Master’s University & Seminary and Subsidiary is required to pay out credit balances created by federal aid within 14 days of the balance being created. Criteria: 34 CFR 668.164(h) Questioned Costs: $0 Context: Out of 60 students tested for paying out credit balances created by disbursing Title IV funds, there were 2 students who had a credit balance not paid out timely and the Master’s University and Seminary did not have authorization from the student to hold the credit balance. They were eventually paid out or applied to the following term’s tuition and fees. Cause: While there is a process to identify and pay out Title IV credit balances timely, the reports generated but it appears that it isn’t frequent enough as some were Effect: Noncompliance with the Department of Education’s cash management regulations Identification as repeat finding, if applicable: N/A Recommendation: We recommend The Master’s University & Seminary and Subsidiary refine their process to identify credit balances created by federal aid and disburse them to students within 14 days of the balance being created and to pay out all credit balances at the end of the payment period. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-002
Credit Balances Not Paid Out in 14 days DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: The Master’s University & Seminary and Subsidiary is required to pay out credit balances created by federal aid within 14 days of the balance being created. Criteria: 34 CFR 668.164(h) Questioned Costs: $0 Context: Out of 60 students tested for paying out credit balances created by disbursing Title IV funds, there were 2 students who had a credit balance not paid out timely and the Master’s University and Seminary did not have authorization from the student to hold the credit balance. They were eventually paid out or applied to the following term’s tuition and fees. Cause: While there is a process to identify and pay out Title IV credit balances timely, the reports generated but it appears that it isn’t frequent enough as some were Effect: Noncompliance with the Department of Education’s cash management regulations Identification as repeat finding, if applicable: N/A Recommendation: We recommend The Master’s University & Seminary and Subsidiary refine their process to identify credit balances created by federal aid and disburse them to students within 14 days of the balance being created and to pay out all credit balances at the end of the payment period. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-003
Enrollment Reporting to NSLDS DEPARTMENT OF EDUCATION ALN #: 84.268 and 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 63 students tested for proper NSLDS enrollment status, 1 student who withdrew was still being reported as half-time and 2 students were reported as no record found. Cause: Reporting was sent to National Student Clearinghouse (NSC) but it did not get processed. 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: It is recommended that the client review a sample of each batch sent to the NSC to make sure the batch was successfully processed in NSLDS. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-003
Enrollment Reporting to NSLDS DEPARTMENT OF EDUCATION ALN #: 84.268 and 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 63 students tested for proper NSLDS enrollment status, 1 student who withdrew was still being reported as half-time and 2 students were reported as no record found. Cause: Reporting was sent to National Student Clearinghouse (NSC) but it did not get processed. 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: It is recommended that the client review a sample of each batch sent to the NSC to make sure the batch was successfully processed in NSLDS. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.