Audit 328050

FY End
2024-05-31
Total Expended
$13.32M
Findings
4
Programs
5
Organization: East Texas Baptist University (TX)
Year: 2024 Accepted: 2024-11-12
Auditor: Capincrouse LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
505377 2024-001 - - N
505378 2024-001 - - N
1081819 2024-001 - - N
1081820 2024-001 - - N

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $9.98M Yes 1
84.063 Federal Pell Grant Program $3.09M Yes 1
84.033 Federal Work-Study Program $129,972 Yes 0
84.007 Federal Supplemental Educational Opportunity Grants $114,905 Yes 0
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $14,739 Yes 0

Contacts

Name Title Type
YGZCM3ADMCX5 Joanna Hammond Auditee
9039232051 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 East Texas Baptist 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 East Texas Baptist 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 East Texas Baptist 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 intuitional 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

Enrollment Reporting to National Student Loan Data System (NSLDS) DEPARTMENT OF EDUCATION ALN #: 84.268 and 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: The NSLDS enrollment status effective date for withdrawals and graduated students was not accurately sent to NSLDS from the system. Criteria: 34 CFR 690.83(b) and 34 CFR 685.309 Questioned Costs: $0 Context: Out of 68 students tested, 3 students had incorrect effective dates reported for their enrollment status. One student who graduated after the fall semester was reported as withdrawn instead of graduated. Two official withdrawals during the spring semester were reported as withdrawn at the end of the fall semester. These students were corrected during the audit process. Cause: The incorrect effective dates were pulled in order to send to NSLDS. 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: Not applicable. Recommendation: We recommend the University put a system in place to ensure that the date being reported to NSLDS as the effective date of withdrawal is the official withdrawal date of attendance for the student. We also recommend the graduation roster be checked each semester. We further recommend the University complete spot checks of enrollment statuses to NSLDS. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Enrollment Reporting to National Student Loan Data System (NSLDS) DEPARTMENT OF EDUCATION ALN #: 84.268 and 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: The NSLDS enrollment status effective date for withdrawals and graduated students was not accurately sent to NSLDS from the system. Criteria: 34 CFR 690.83(b) and 34 CFR 685.309 Questioned Costs: $0 Context: Out of 68 students tested, 3 students had incorrect effective dates reported for their enrollment status. One student who graduated after the fall semester was reported as withdrawn instead of graduated. Two official withdrawals during the spring semester were reported as withdrawn at the end of the fall semester. These students were corrected during the audit process. Cause: The incorrect effective dates were pulled in order to send to NSLDS. 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: Not applicable. Recommendation: We recommend the University put a system in place to ensure that the date being reported to NSLDS as the effective date of withdrawal is the official withdrawal date of attendance for the student. We also recommend the graduation roster be checked each semester. We further recommend the University complete spot checks of enrollment statuses to NSLDS. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Enrollment Reporting to National Student Loan Data System (NSLDS) DEPARTMENT OF EDUCATION ALN #: 84.268 and 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: The NSLDS enrollment status effective date for withdrawals and graduated students was not accurately sent to NSLDS from the system. Criteria: 34 CFR 690.83(b) and 34 CFR 685.309 Questioned Costs: $0 Context: Out of 68 students tested, 3 students had incorrect effective dates reported for their enrollment status. One student who graduated after the fall semester was reported as withdrawn instead of graduated. Two official withdrawals during the spring semester were reported as withdrawn at the end of the fall semester. These students were corrected during the audit process. Cause: The incorrect effective dates were pulled in order to send to NSLDS. 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: Not applicable. Recommendation: We recommend the University put a system in place to ensure that the date being reported to NSLDS as the effective date of withdrawal is the official withdrawal date of attendance for the student. We also recommend the graduation roster be checked each semester. We further recommend the University complete spot checks of enrollment statuses to NSLDS. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Enrollment Reporting to National Student Loan Data System (NSLDS) DEPARTMENT OF EDUCATION ALN #: 84.268 and 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: The NSLDS enrollment status effective date for withdrawals and graduated students was not accurately sent to NSLDS from the system. Criteria: 34 CFR 690.83(b) and 34 CFR 685.309 Questioned Costs: $0 Context: Out of 68 students tested, 3 students had incorrect effective dates reported for their enrollment status. One student who graduated after the fall semester was reported as withdrawn instead of graduated. Two official withdrawals during the spring semester were reported as withdrawn at the end of the fall semester. These students were corrected during the audit process. Cause: The incorrect effective dates were pulled in order to send to NSLDS. 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: Not applicable. Recommendation: We recommend the University put a system in place to ensure that the date being reported to NSLDS as the effective date of withdrawal is the official withdrawal date of attendance for the student. We also recommend the graduation roster be checked each semester. We further recommend the University complete spot checks of enrollment statuses to NSLDS. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.