FAC Explorer

Audit 325326

FY End
2024-06-30
Total Expended
$29.96M
Findings
2
Programs
19
Organization: Francis Marion University (SC)
Year: 2024 Accepted: 2024-10-21
Auditor: Cline Brandt & Kochenower & CO P A

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
503263 2024-001 - - N
1079705 2024-001 - - N

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $14.53M Yes 1
93.778 Medical Assistance Program $2.38M Yes 0
11.307 Economic Adjustment Assistance $843,576 Yes 0
84.116Z Fund for the Improvement of Postsecondary Education $691,299 - 0
64.028 Post-9/11 Veterans Educational Assistance $539,134 - 0
93.247 Advanced Education Nursing Grant Program $526,035 - 0
84.038 Federal Perkins Loan Program $408,615 Yes 0
84.425 Education Stabilization Fund $255,294 - 0
84.027A Special Education Grants to States $195,827 - 0
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $187,074 - 0
84.007 Federal Supplemental Educational Opportunity Grants $170,659 Yes 0
93.575 Child Care and Development Block Grant $150,314 - 0
93.859 Biomedical Research and Research Training $136,443 - 0
84.033 Federal Work-Study Program $114,891 Yes 0
93.264 Nurse Faculty Loan Program (nflp) $114,862 Yes 0
84.063 Federal Pell Grant Program $101,234 Yes 0
47.083 Integrative Activities $78,449 - 0
10.351 Rural Business Development Grant $11,204 - 0
43.008 Office of Stem Engagement (ostem) $1,500 - 0

Contacts

Name Title Type
KQ8SV6752C73 Laura M. Rhoads, CPA Auditee
8436611121 Laura S. Arango, CPA Auditor
No contacts on file

Notes to SEFA

Title: LOAN PROGRAMS Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Francis Marion University and is presented on the accrual basis of accounting. The information in the schedule is presented in accordance with the requirements of 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 financial statements. Expenditures for student financial aid programs include the federal share of students’ Federal Supplemental Educational Opportunity Grant (FSEOG) and Federal Work Study (FWS) earnings, certain other federal financial aid for students and administrative cost allowances, where applicable. De Minimis Rate Used: N Rate Explanation: The University elected not to use the 10-percent de minimis cost rate as allowed under the Uniform Guidance. The Direct Loan Program provides loans to students and their parents. The loans are made directly from the federal government; therefore there is no loan balance recorded at the University. The totals of loans processed for the current fiscal year are: The Federal Perkins Loan Program is administered directly by the University and balances and transactions relating to the program are included in the University’s financial statements. The balance of loans outstanding under the Federal Perkins Loan Program was $287,923 as of June 30, 2024. The expenditures for June 30, 2024 are calculated as follows: The Nurse Faculty Loan Program is administered directly by the University and balances and transactions relating to the program are included in the University’s financial statements. The balance of loans outstanding under the Nurse Faculty Loan Program was $79,134 as of June 30, 2024. The expenditures for June 30, 2024 are calculated as follows:

Finding Details

Finding 2024-001
COMPLIANCE FINDING 2024-001 Special Tests and Provisions – Disbursements to or on behalf of Students Based on a sample of 25 students Condition: We found 23 instances where students were awarded direct loan program funds and the institution was not in compliance with all the loan notification requirements under 34 CRF 668.165. The institution uses affirmative confirmation and must notify students no earlier than 30 days before, and no later than 30 days after, crediting the student’s ledger account at the institution. The institution was not able to provide evidence that the notification was sent to students within the required time. In addition, the institution was not able to provide evidence that the anticipated date of the disbursement was communicated to students in writing as required. Criteria: Before an institution disburses title IV, HEA program funds for any award year, the institution must notify a student of the amount of funds that the student or his or her parent can expect to receive under each title IV, HEA program, and how and when those funds will be disbursed. If those funds include Direct Loan program funds, the notice must indicate which funds are from subsidized loans, which are from unsubsidized loans, and which are from PLUS loans (34 CRF 668.165(a)(1). Except in the case of a post-withdrawal disbursement made in accordance with § 668.22(a)(5), if an institution credits a student ledger account with Direct Loan, Federal Perkins Loan, or TEACH Grant program funds, the institution must notify the student or parent of (34 CFR 668.165(a)(2)) — (i) The anticipated date and amount of the disbursement; (ii) The student's or parent's right to cancel all or a portion of that loan, loan disbursement, TEACH Grant, or TEACH Grant disbursement and have the loan proceeds or TEACH Grant proceeds returned to the Secretary; and (iii) The procedures and time by which the student or parent must notify the institution that he or she wishes to cancel the loan, loan disbursement, TEACH Grant, or TEACH Grant disbursement. The institution must provide the notice described in paragraph (a)(2) of this section in writing (34 CFR 668.165(a)(3)) — (i) No earlier than 30 days before, and no later than 30 days after, crediting the student's ledger account at the institution, if the institution obtains affirmative confirmation from the student under paragraph (a)(6)(i) of this section; or (ii) No earlier than 30 days before, and no later than seven days after, crediting the student's ledger account at the institution, if the institution does not obtain affirmative confirmation from the student under paragraph (a)(6)(i) of this section. Cause: The former director of Financial Assistance mistakenly believed that information on the university website and acceptance of the loans by the recipient would satisfy the notification requirements. This misinterpretation was the cause of the non-compliance. Effect: Noncompliance with certain requirements under 34 CFR 668.165(a). Recommendation: We recommend that the University put in place a plan of action to ensure that written notifications are sent to students within the required time frame for affirmative confirmations and that the notifications includes all required elements of 34 CFR 668.165(a)(2). Views of Responsible Officials and Planned Corrective Actions – See Corrective Action Plan
Finding 2024-001
COMPLIANCE FINDING 2024-001 Special Tests and Provisions – Disbursements to or on behalf of Students Based on a sample of 25 students Condition: We found 23 instances where students were awarded direct loan program funds and the institution was not in compliance with all the loan notification requirements under 34 CRF 668.165. The institution uses affirmative confirmation and must notify students no earlier than 30 days before, and no later than 30 days after, crediting the student’s ledger account at the institution. The institution was not able to provide evidence that the notification was sent to students within the required time. In addition, the institution was not able to provide evidence that the anticipated date of the disbursement was communicated to students in writing as required. Criteria: Before an institution disburses title IV, HEA program funds for any award year, the institution must notify a student of the amount of funds that the student or his or her parent can expect to receive under each title IV, HEA program, and how and when those funds will be disbursed. If those funds include Direct Loan program funds, the notice must indicate which funds are from subsidized loans, which are from unsubsidized loans, and which are from PLUS loans (34 CRF 668.165(a)(1). Except in the case of a post-withdrawal disbursement made in accordance with § 668.22(a)(5), if an institution credits a student ledger account with Direct Loan, Federal Perkins Loan, or TEACH Grant program funds, the institution must notify the student or parent of (34 CFR 668.165(a)(2)) — (i) The anticipated date and amount of the disbursement; (ii) The student's or parent's right to cancel all or a portion of that loan, loan disbursement, TEACH Grant, or TEACH Grant disbursement and have the loan proceeds or TEACH Grant proceeds returned to the Secretary; and (iii) The procedures and time by which the student or parent must notify the institution that he or she wishes to cancel the loan, loan disbursement, TEACH Grant, or TEACH Grant disbursement. The institution must provide the notice described in paragraph (a)(2) of this section in writing (34 CFR 668.165(a)(3)) — (i) No earlier than 30 days before, and no later than 30 days after, crediting the student's ledger account at the institution, if the institution obtains affirmative confirmation from the student under paragraph (a)(6)(i) of this section; or (ii) No earlier than 30 days before, and no later than seven days after, crediting the student's ledger account at the institution, if the institution does not obtain affirmative confirmation from the student under paragraph (a)(6)(i) of this section. Cause: The former director of Financial Assistance mistakenly believed that information on the university website and acceptance of the loans by the recipient would satisfy the notification requirements. This misinterpretation was the cause of the non-compliance. Effect: Noncompliance with certain requirements under 34 CFR 668.165(a). Recommendation: We recommend that the University put in place a plan of action to ensure that written notifications are sent to students within the required time frame for affirmative confirmations and that the notifications includes all required elements of 34 CFR 668.165(a)(2). Views of Responsible Officials and Planned Corrective Actions – See Corrective Action Plan