Audit 326717

FY End

2024-05-31

Total Expended

$18.18M

Findings

4

Programs

5

Organization: North Greenville University (SC)

Year: 2024 Accepted: 2024-10-30

Auditor: Capincrouse LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
504218	2024-001	Material Weakness	Yes	N
504219	2024-001	Material Weakness	Yes	N
1080660	2024-001	Material Weakness	Yes	N
1080661	2024-001	Material Weakness	Yes	N

ALN	Program	Spent	Major	Findings
84.268	Federal Direct Student Loans	$14.07M	Yes	1
84.063	Federal Pell Grant Program	$3.77M	Yes	0
84.379	Teacher Education Assistance for College and Higher Education Grants (teach Grants)	$140,886	Yes	1
84.007	Federal Supplemental Educational Opportunity Grants	$113,891	Yes	0
84.033	Federal Work-Study Program	$86,392	Yes	0

Contacts

Name	Title	Type
LBH5QLJ6R536	Rachel Russiaky	Auditee
8649777190	Dan Campbell, CPA	Auditor
No contacts on file

Notes to SEFA

Title: RELATIONSHIP TO FINANCIAL STATEMENTS Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of North Greenville University (University) under programs of the federal government for the year ended May 31, 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 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 North Greenville University (University) under programs of the federal government for the year ended May 31, 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 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: 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 North Greenville University (University) under programs of the federal government for the year ended May 31, 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 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

Return of Title IV (R2T4) Calculations Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.268, 84.379 Federal Award Identification #: 2023-2024 Award Year Condition: R2T4 calculations were not consistently completed correctly. Criteria: 34 CFR 668.22 Questioned Costs: $13,868 Context: Out of 7 withdrawals tested, 5 had incorrect R2T4 calculations. 3 of these students had federal direct loans (FDL). incorrectly included in the R2T4 calculations as having been disbursed. The funds had not been disbursed to the student until after the University’s date of determination; therefore, funds should have been included as “could have been disbursed”. The University did not get the student’s approval for a post withdrawal disbursement of loans. 1 student had a TEACH grant included as having been disbursed but it should have been included as “could have been disbursed” resulting in a $1,322 over return of FDL and under return of a TEACH grant by the same amount. 1 student had an incorrect last date of attendance used for the withdrawal date in the R2T4 calculation resulting in $96 more in FDL returned than required. Cause: This was an oversight by the University. There were delays between the origination of awards to students versus when funds were posted and disbursed that were not caught during the R2T4 evaluation. Effect: Incorrect amounts of federal funding were returned. There were over-returns of FDL of $1,419, under-returns of FDL of $13,868, and under-returns of TEACH of $1,322. Identification as repeat finding, if applicable: Yes, 2023-001 Recommendation: We recommend the University add a check for whether awards have been posted to the student account prior to calculating the R2T4. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Finding 2024-001

Return of Title IV (R2T4) Calculations Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.268, 84.379 Federal Award Identification #: 2023-2024 Award Year Condition: R2T4 calculations were not consistently completed correctly. Criteria: 34 CFR 668.22 Questioned Costs: $13,868 Context: Out of 7 withdrawals tested, 5 had incorrect R2T4 calculations. 3 of these students had federal direct loans (FDL). incorrectly included in the R2T4 calculations as having been disbursed. The funds had not been disbursed to the student until after the University’s date of determination; therefore, funds should have been included as “could have been disbursed”. The University did not get the student’s approval for a post withdrawal disbursement of loans. 1 student had a TEACH grant included as having been disbursed but it should have been included as “could have been disbursed” resulting in a $1,322 over return of FDL and under return of a TEACH grant by the same amount. 1 student had an incorrect last date of attendance used for the withdrawal date in the R2T4 calculation resulting in $96 more in FDL returned than required. Cause: This was an oversight by the University. There were delays between the origination of awards to students versus when funds were posted and disbursed that were not caught during the R2T4 evaluation. Effect: Incorrect amounts of federal funding were returned. There were over-returns of FDL of $1,419, under-returns of FDL of $13,868, and under-returns of TEACH of $1,322. Identification as repeat finding, if applicable: Yes, 2023-001 Recommendation: We recommend the University add a check for whether awards have been posted to the student account prior to calculating the R2T4. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Finding 2024-001

Return of Title IV (R2T4) Calculations Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.268, 84.379 Federal Award Identification #: 2023-2024 Award Year Condition: R2T4 calculations were not consistently completed correctly. Criteria: 34 CFR 668.22 Questioned Costs: $13,868 Context: Out of 7 withdrawals tested, 5 had incorrect R2T4 calculations. 3 of these students had federal direct loans (FDL). incorrectly included in the R2T4 calculations as having been disbursed. The funds had not been disbursed to the student until after the University’s date of determination; therefore, funds should have been included as “could have been disbursed”. The University did not get the student’s approval for a post withdrawal disbursement of loans. 1 student had a TEACH grant included as having been disbursed but it should have been included as “could have been disbursed” resulting in a $1,322 over return of FDL and under return of a TEACH grant by the same amount. 1 student had an incorrect last date of attendance used for the withdrawal date in the R2T4 calculation resulting in $96 more in FDL returned than required. Cause: This was an oversight by the University. There were delays between the origination of awards to students versus when funds were posted and disbursed that were not caught during the R2T4 evaluation. Effect: Incorrect amounts of federal funding were returned. There were over-returns of FDL of $1,419, under-returns of FDL of $13,868, and under-returns of TEACH of $1,322. Identification as repeat finding, if applicable: Yes, 2023-001 Recommendation: We recommend the University add a check for whether awards have been posted to the student account prior to calculating the R2T4. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Finding 2024-001

Return of Title IV (R2T4) Calculations Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.268, 84.379 Federal Award Identification #: 2023-2024 Award Year Condition: R2T4 calculations were not consistently completed correctly. Criteria: 34 CFR 668.22 Questioned Costs: $13,868 Context: Out of 7 withdrawals tested, 5 had incorrect R2T4 calculations. 3 of these students had federal direct loans (FDL). incorrectly included in the R2T4 calculations as having been disbursed. The funds had not been disbursed to the student until after the University’s date of determination; therefore, funds should have been included as “could have been disbursed”. The University did not get the student’s approval for a post withdrawal disbursement of loans. 1 student had a TEACH grant included as having been disbursed but it should have been included as “could have been disbursed” resulting in a $1,322 over return of FDL and under return of a TEACH grant by the same amount. 1 student had an incorrect last date of attendance used for the withdrawal date in the R2T4 calculation resulting in $96 more in FDL returned than required. Cause: This was an oversight by the University. There were delays between the origination of awards to students versus when funds were posted and disbursed that were not caught during the R2T4 evaluation. Effect: Incorrect amounts of federal funding were returned. There were over-returns of FDL of $1,419, under-returns of FDL of $13,868, and under-returns of TEACH of $1,322. Identification as repeat finding, if applicable: Yes, 2023-001 Recommendation: We recommend the University add a check for whether awards have been posted to the student account prior to calculating the R2T4. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.