Audit 32794

FY End
2022-06-30
Total Expended
$17.77M
Findings
2
Programs
15
Year: 2022 Accepted: 2022-11-29
Auditor: Forvis LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
34945 2022-001 - - N
611387 2022-001 - - N

Contacts

Name Title Type
VH9FNJX3Y7C7 Matt Davis Auditee
8128778421 Daniel Waninger Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: Basis of Presentation: The accompanying Supplemental Schedule of Expenditures of Federal Awards includes the federal grant transactions of Rose Hulman Institute of Technology, Inc. (the Institute). The accompanying notes are an integral part of this Schedule. The information in this 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). Because the Schedule presents only a selected portion of the operations of the Institute, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Institute. Summary of Significant Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB A21 or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Institute has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. During the fiscal year ended June 30, 2022, the Institute did not process any loans under the Perkins Laon Program (CFDA Number 84.038) due to the discontinuation of the program. At June 30, 2022, loans outstanding under the Perkins Loan Program were $2,135,788. Perkins loans outstanding at June 30, 2022, reflect both the federal government contribution and the Institute's matching portion.
Title: Awards to Subrecipients Accounting Policies: Basis of Presentation: The accompanying Supplemental Schedule of Expenditures of Federal Awards includes the federal grant transactions of Rose Hulman Institute of Technology, Inc. (the Institute). The accompanying notes are an integral part of this Schedule. The information in this 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). Because the Schedule presents only a selected portion of the operations of the Institute, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Institute. Summary of Significant Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB A21 or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Institute has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The Institute provided no federal awards to subrecipients for the fiscal year ended June 30, 2022.

Finding Details

Information on the federal program: U.S. Department of Education Student Financial Assistance Cluster for the award year June 30, 2022 (Assistance Listing Number 84.038) Criteria or specific requirement: Special Tests and Provisions ? Perkins Loan Recordkeeping and Record Retention ? Institutions are required to properly maintain its Perkins loan records in the manner set forth in 34 CFR 674.19.(e). Condition: The College did not maintain Perkins loan records in the manner set forth in 34 CFR 674.19.(e). (Other Instance of Noncompliance) Questioned costs: none Context: During testing of Perkins loan recordkeeping and record retention, 8 out or 25 selections did not have records of the related master promissory note (MPN). From a population of 564 students, 25 were selected for testing. Errors consisted of 8 students for which the College did not have records of their MPN. Our sample selection was not, and was not intended to be, statistically valid. Effect: The College does not have documentation of MPNs for the errors identified. Cause: The MPNs for these eight students had been destroyed due to a labeling error of the document destruction date on the boxes. Identification as a repeat finding, if applicable: not applicable. Recommendation: The College should revisit the record retention for student related files, particularly those that relate to federal compliance requirements. Views of responsible officials and planned corrective actions: The College agrees with the comment and has developed a plan to correct the finding.
Information on the federal program: U.S. Department of Education Student Financial Assistance Cluster for the award year June 30, 2022 (Assistance Listing Number 84.038) Criteria or specific requirement: Special Tests and Provisions ? Perkins Loan Recordkeeping and Record Retention ? Institutions are required to properly maintain its Perkins loan records in the manner set forth in 34 CFR 674.19.(e). Condition: The College did not maintain Perkins loan records in the manner set forth in 34 CFR 674.19.(e). (Other Instance of Noncompliance) Questioned costs: none Context: During testing of Perkins loan recordkeeping and record retention, 8 out or 25 selections did not have records of the related master promissory note (MPN). From a population of 564 students, 25 were selected for testing. Errors consisted of 8 students for which the College did not have records of their MPN. Our sample selection was not, and was not intended to be, statistically valid. Effect: The College does not have documentation of MPNs for the errors identified. Cause: The MPNs for these eight students had been destroyed due to a labeling error of the document destruction date on the boxes. Identification as a repeat finding, if applicable: not applicable. Recommendation: The College should revisit the record retention for student related files, particularly those that relate to federal compliance requirements. Views of responsible officials and planned corrective actions: The College agrees with the comment and has developed a plan to correct the finding.