FAC Explorer

Audit 325158

FY End
2024-06-30
Total Expended
$9.74M
Findings
4
Programs
3
Organization: Amridge University, Inc. (AL)
Year: 2024 Accepted: 2024-10-18
Auditor: Fulton & Kozak LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
503146 2024-001 Material Weakness - N
503147 2024-001 Material Weakness - N
1079588 2024-001 Material Weakness - N
1079589 2024-001 Material Weakness - N

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $8.75M Yes 1
84.063 Federal Pell Grant Program $979,449 Yes 1
84.007 Federal Supplemental Educational Opportunity Grants $13,959 Yes 0

Contacts

Name Title Type
RB27R4GLDKE7 Anita Crosby Auditee
3343877575 Dan Soles Auditor
No contacts on file

Notes to SEFA

Title: Note 1 - Basis of Presentation Accounting Policies: Expenditures reported on 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. De Minimis Rate Used: N Rate Explanation: The University has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (“Schedule”) includes the federal award activity of Amridge University, Inc. (“University”) under programs of the federal government for the year ended June 30, 2024. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (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 the University, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the University.
Title: Note 4 – Federal Direct Student Loan Program Accounting Policies: Expenditures reported on 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. De Minimis Rate Used: N Rate Explanation: The University has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. During the fiscal year ended June 30, 2024, the University processed new loans under the Federal Direct Student Loan Program totaling $8,751,127. For loans processed under this program, the University is only responsible for performance of certain administrative duties and, accordingly, these loans are not included as assets in the University’s financial statements. It is not practical to determine the balance of loans outstanding to students and former students of the University under the Federal Direct Student Loan Program as of June 30, 2024.
Title: Note 5 – Related Party Transactions Accounting Policies: Expenditures reported on 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. De Minimis Rate Used: N Rate Explanation: The University has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. For the year ended June 30, 2024, there were no related party transactions affecting federal awards.

Finding Details

Finding 2024-001
Finding 2024-001: Untimely and Inaccurate Enrollment Reporting Compliance Requirement: Special Tests & Provisions: Enrollment Reporting Type: Material Weakness in Internal Control over Compliance; Material Noncompliance Federal Awarding Agency: U.S. Department of Education AL Numbers and Titles: 84.063 and 84.268 – Student Financial Aid Cluster Grant Award Period: July 1, 2023 through June 30, 2024 Questioned Costs: None Repeat Finding: No Criteria: Per 2 CFR 200.303, nonfederal entities receiving federal awards are required to establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements. Additionally, 34 CFR 682.610, states that institutions must report accurately the enrollment status of all students regardless of if they receive aid from the institution or not. Changes to said status are required to be reported within 30 days of becoming aware of the status change, or with the next scheduled transmission of statuses if the scheduled transmission is within 60 days. Condition: During our testing of 12 students, we identified 9 students for which the student's enrollment status was not reported timely to the National Student Loan Data System (NSLDS) and 8 students whose graduation status was not accurately reported to the NSLDS. Cause: During the year, the University submitted its listing of individuals who graduated to Clearinghouse to upload to NSLDS. However, the University did not review the listing of exceptions from Clearinghouse related to the students whose status changes were not uploaded to NSLDS, which caused the enrollment changes for students who graduated to not be reported in accordance with federal requirements. This caused students to not be reported to NSLDS until the audit.Effect: The University was not in compliance with the requirements to properly report student enrollment data correctly. Incorrect dates submitted to NSLDS may be used to determine the grace period for the repayment and interest of outstanding Title IV student loans. Recommendation: We recommend the University review current processes for reporting to NSLDS and implement procedures to ensure submissions are reported timely and accurately. Views of Responsible Officials Corrective Actions: The University agrees with this finding. Please refer to the Corrective Action Plan.
Finding 2024-001
Finding 2024-001: Untimely and Inaccurate Enrollment Reporting Compliance Requirement: Special Tests & Provisions: Enrollment Reporting Type: Material Weakness in Internal Control over Compliance; Material Noncompliance Federal Awarding Agency: U.S. Department of Education AL Numbers and Titles: 84.063 and 84.268 – Student Financial Aid Cluster Grant Award Period: July 1, 2023 through June 30, 2024 Questioned Costs: None Repeat Finding: No Criteria: Per 2 CFR 200.303, nonfederal entities receiving federal awards are required to establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements. Additionally, 34 CFR 682.610, states that institutions must report accurately the enrollment status of all students regardless of if they receive aid from the institution or not. Changes to said status are required to be reported within 30 days of becoming aware of the status change, or with the next scheduled transmission of statuses if the scheduled transmission is within 60 days. Condition: During our testing of 12 students, we identified 9 students for which the student's enrollment status was not reported timely to the National Student Loan Data System (NSLDS) and 8 students whose graduation status was not accurately reported to the NSLDS. Cause: During the year, the University submitted its listing of individuals who graduated to Clearinghouse to upload to NSLDS. However, the University did not review the listing of exceptions from Clearinghouse related to the students whose status changes were not uploaded to NSLDS, which caused the enrollment changes for students who graduated to not be reported in accordance with federal requirements. This caused students to not be reported to NSLDS until the audit.Effect: The University was not in compliance with the requirements to properly report student enrollment data correctly. Incorrect dates submitted to NSLDS may be used to determine the grace period for the repayment and interest of outstanding Title IV student loans. Recommendation: We recommend the University review current processes for reporting to NSLDS and implement procedures to ensure submissions are reported timely and accurately. Views of Responsible Officials Corrective Actions: The University agrees with this finding. Please refer to the Corrective Action Plan.
Finding 2024-001
Finding 2024-001: Untimely and Inaccurate Enrollment Reporting Compliance Requirement: Special Tests & Provisions: Enrollment Reporting Type: Material Weakness in Internal Control over Compliance; Material Noncompliance Federal Awarding Agency: U.S. Department of Education AL Numbers and Titles: 84.063 and 84.268 – Student Financial Aid Cluster Grant Award Period: July 1, 2023 through June 30, 2024 Questioned Costs: None Repeat Finding: No Criteria: Per 2 CFR 200.303, nonfederal entities receiving federal awards are required to establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements. Additionally, 34 CFR 682.610, states that institutions must report accurately the enrollment status of all students regardless of if they receive aid from the institution or not. Changes to said status are required to be reported within 30 days of becoming aware of the status change, or with the next scheduled transmission of statuses if the scheduled transmission is within 60 days. Condition: During our testing of 12 students, we identified 9 students for which the student's enrollment status was not reported timely to the National Student Loan Data System (NSLDS) and 8 students whose graduation status was not accurately reported to the NSLDS. Cause: During the year, the University submitted its listing of individuals who graduated to Clearinghouse to upload to NSLDS. However, the University did not review the listing of exceptions from Clearinghouse related to the students whose status changes were not uploaded to NSLDS, which caused the enrollment changes for students who graduated to not be reported in accordance with federal requirements. This caused students to not be reported to NSLDS until the audit.Effect: The University was not in compliance with the requirements to properly report student enrollment data correctly. Incorrect dates submitted to NSLDS may be used to determine the grace period for the repayment and interest of outstanding Title IV student loans. Recommendation: We recommend the University review current processes for reporting to NSLDS and implement procedures to ensure submissions are reported timely and accurately. Views of Responsible Officials Corrective Actions: The University agrees with this finding. Please refer to the Corrective Action Plan.
Finding 2024-001
Finding 2024-001: Untimely and Inaccurate Enrollment Reporting Compliance Requirement: Special Tests & Provisions: Enrollment Reporting Type: Material Weakness in Internal Control over Compliance; Material Noncompliance Federal Awarding Agency: U.S. Department of Education AL Numbers and Titles: 84.063 and 84.268 – Student Financial Aid Cluster Grant Award Period: July 1, 2023 through June 30, 2024 Questioned Costs: None Repeat Finding: No Criteria: Per 2 CFR 200.303, nonfederal entities receiving federal awards are required to establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements. Additionally, 34 CFR 682.610, states that institutions must report accurately the enrollment status of all students regardless of if they receive aid from the institution or not. Changes to said status are required to be reported within 30 days of becoming aware of the status change, or with the next scheduled transmission of statuses if the scheduled transmission is within 60 days. Condition: During our testing of 12 students, we identified 9 students for which the student's enrollment status was not reported timely to the National Student Loan Data System (NSLDS) and 8 students whose graduation status was not accurately reported to the NSLDS. Cause: During the year, the University submitted its listing of individuals who graduated to Clearinghouse to upload to NSLDS. However, the University did not review the listing of exceptions from Clearinghouse related to the students whose status changes were not uploaded to NSLDS, which caused the enrollment changes for students who graduated to not be reported in accordance with federal requirements. This caused students to not be reported to NSLDS until the audit.Effect: The University was not in compliance with the requirements to properly report student enrollment data correctly. Incorrect dates submitted to NSLDS may be used to determine the grace period for the repayment and interest of outstanding Title IV student loans. Recommendation: We recommend the University review current processes for reporting to NSLDS and implement procedures to ensure submissions are reported timely and accurately. Views of Responsible Officials Corrective Actions: The University agrees with this finding. Please refer to the Corrective Action Plan.