Audit 329240

FY End
2024-06-30
Total Expended
$24.36M
Findings
6
Programs
14
Organization: Rose State College (OK)
Year: 2024 Accepted: 2024-11-21

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
509643 2024-001 Significant Deficiency - L
509644 2024-002 Significant Deficiency - G
509645 2024-002 Significant Deficiency - G
1086085 2024-001 Significant Deficiency - L
1086086 2024-002 Significant Deficiency - G
1086087 2024-002 Significant Deficiency - G

Contacts

Name Title Type
FM7LU9EBRZ46 Kent Lashley Auditee
4057337441 Kirk Vanderslice Auditor
No contacts on file

Notes to SEFA

Title: 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 College has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Rose State College (the College) 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 Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the College, it is not intended to and does not present the financial position, changes in net position, or cash flows of the College.
Title: Summary of Significant Accounting Policies 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 College has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. 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. The College has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: 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 College has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The College participates in the Federal Direct Loan Program (the Program), CFDA number 84.268, which includes the Federal Subsidized Direct Loan, the Federal Unsubsidized Direct Loan, the Federal Graduate Student PLUS Direct Loan and Federal Direct Loans Parents of Undergraduate Students. The Federal Direct Loan Program requires the College to draw down cash; and the College is required to perform certain administrative functions under the Program. Failure to perform such functions may require the College to reimburse the loan guarantee agencies. The College is not responsible for the collection of these loans. The value of loans made during the audit period are considered Federal awards expended for the audit period.
Title: Subrecipients 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 College has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. During the year ended June 30, 2024, the College did not provide any federal awards to subrecipients.

Finding Details

Criteria: Under the Coronavirus Response and Relief Supplemental Appropriations and American Rescue Plan Acts, the Quarterly Budget and Expenditure Reporting forms for Higher Education Emergency Relief Funds (HEERF) I, II, and III must be conspicuously posted on the institution’s primary website no later than 10 days after the end of each calendar quarter (October 10, January 10, April 10, July 10). Condition: The HEERF Quarterly Reports for quarters ended March 31, 2024 and June 30, 2024 were not publicly posted with previously posted quarterly reports when the auditor inspected the University’s primary website on July 15, 2024. Cause and Effect: Management failed to realize that the reporting was still required for the remaining unexpended funds and therefore failed to complete reporting timely based on requirements. Recommendation: We recommend that management ensures policies and procedures are in place to complete all reporting requirements and ensure completed within required time frames. Management Response: Management concurs with the finding. The 4th quarter – 2023 report should have been the final report. A check box, indicating final reporting, was inadvertently missed. The quarterly HEERF reports have been updated and posted to the Rose State College website.
Criteria: Under Uniform Guidance 34 CFR 676.21 and 34 CFR 675.26, institutions who receive federal funds for the FSEOG and FWS program must provide matching funds for the programs unless they are an eligible Title III or Title V institution and obtain a waiver for the matching requirement. Condition: The college did not obtain a waiver for the matching requirement for the 2023-2024 financial aid year and did not provide matching funds for the FSEOG and FWS programs. Cause and Effect: Previously the college has been automatically selected as being eligible for the matching funds waiver but did not receive one for 2023-2024 and management did not have proper controls in place to verify institution eligibility or if a waiver was received. Due to management being unaware that the college did not receive a waiver for the current year, matching funds were not provided for the programs and the college did not apply for a waiver. The effect of which is that the College could be obligated to repay the matching portion that was drawn in error of approximately $132,717 as of year-end and has accrued the estimated liability at year end. Recommendation: We recommend that management ensures policies and procedures are in place to verify college eligibility for matching fund requirements and to confirm that waivers are obtained in future years. Management Response: Management concurs with the finding. It was assumed the college would be auto-designated as an eligible institution based on Integrated Postsecondary Education Data System (IPEDS) data. New procedures have been implemented. The college will submit the Title III/V application annually regardless of the IPEDS status.
Criteria: Under Uniform Guidance 34 CFR 676.21 and 34 CFR 675.26, institutions who receive federal funds for the FSEOG and FWS program must provide matching funds for the programs unless they are an eligible Title III or Title V institution and obtain a waiver for the matching requirement. Condition: The college did not obtain a waiver for the matching requirement for the 2023-2024 financial aid year and did not provide matching funds for the FSEOG and FWS programs. Cause and Effect: Previously the college has been automatically selected as being eligible for the matching funds waiver but did not receive one for 2023-2024 and management did not have proper controls in place to verify institution eligibility or if a waiver was received. Due to management being unaware that the college did not receive a waiver for the current year, matching funds were not provided for the programs and the college did not apply for a waiver. The effect of which is that the College could be obligated to repay the matching portion that was drawn in error of approximately $132,717 as of year-end and has accrued the estimated liability at year end. Recommendation: We recommend that management ensures policies and procedures are in place to verify college eligibility for matching fund requirements and to confirm that waivers are obtained in future years. Management Response: Management concurs with the finding. It was assumed the college would be auto-designated as an eligible institution based on Integrated Postsecondary Education Data System (IPEDS) data. New procedures have been implemented. The college will submit the Title III/V application annually regardless of the IPEDS status.
Criteria: Under the Coronavirus Response and Relief Supplemental Appropriations and American Rescue Plan Acts, the Quarterly Budget and Expenditure Reporting forms for Higher Education Emergency Relief Funds (HEERF) I, II, and III must be conspicuously posted on the institution’s primary website no later than 10 days after the end of each calendar quarter (October 10, January 10, April 10, July 10). Condition: The HEERF Quarterly Reports for quarters ended March 31, 2024 and June 30, 2024 were not publicly posted with previously posted quarterly reports when the auditor inspected the University’s primary website on July 15, 2024. Cause and Effect: Management failed to realize that the reporting was still required for the remaining unexpended funds and therefore failed to complete reporting timely based on requirements. Recommendation: We recommend that management ensures policies and procedures are in place to complete all reporting requirements and ensure completed within required time frames. Management Response: Management concurs with the finding. The 4th quarter – 2023 report should have been the final report. A check box, indicating final reporting, was inadvertently missed. The quarterly HEERF reports have been updated and posted to the Rose State College website.
Criteria: Under Uniform Guidance 34 CFR 676.21 and 34 CFR 675.26, institutions who receive federal funds for the FSEOG and FWS program must provide matching funds for the programs unless they are an eligible Title III or Title V institution and obtain a waiver for the matching requirement. Condition: The college did not obtain a waiver for the matching requirement for the 2023-2024 financial aid year and did not provide matching funds for the FSEOG and FWS programs. Cause and Effect: Previously the college has been automatically selected as being eligible for the matching funds waiver but did not receive one for 2023-2024 and management did not have proper controls in place to verify institution eligibility or if a waiver was received. Due to management being unaware that the college did not receive a waiver for the current year, matching funds were not provided for the programs and the college did not apply for a waiver. The effect of which is that the College could be obligated to repay the matching portion that was drawn in error of approximately $132,717 as of year-end and has accrued the estimated liability at year end. Recommendation: We recommend that management ensures policies and procedures are in place to verify college eligibility for matching fund requirements and to confirm that waivers are obtained in future years. Management Response: Management concurs with the finding. It was assumed the college would be auto-designated as an eligible institution based on Integrated Postsecondary Education Data System (IPEDS) data. New procedures have been implemented. The college will submit the Title III/V application annually regardless of the IPEDS status.
Criteria: Under Uniform Guidance 34 CFR 676.21 and 34 CFR 675.26, institutions who receive federal funds for the FSEOG and FWS program must provide matching funds for the programs unless they are an eligible Title III or Title V institution and obtain a waiver for the matching requirement. Condition: The college did not obtain a waiver for the matching requirement for the 2023-2024 financial aid year and did not provide matching funds for the FSEOG and FWS programs. Cause and Effect: Previously the college has been automatically selected as being eligible for the matching funds waiver but did not receive one for 2023-2024 and management did not have proper controls in place to verify institution eligibility or if a waiver was received. Due to management being unaware that the college did not receive a waiver for the current year, matching funds were not provided for the programs and the college did not apply for a waiver. The effect of which is that the College could be obligated to repay the matching portion that was drawn in error of approximately $132,717 as of year-end and has accrued the estimated liability at year end. Recommendation: We recommend that management ensures policies and procedures are in place to verify college eligibility for matching fund requirements and to confirm that waivers are obtained in future years. Management Response: Management concurs with the finding. It was assumed the college would be auto-designated as an eligible institution based on Integrated Postsecondary Education Data System (IPEDS) data. New procedures have been implemented. The college will submit the Title III/V application annually regardless of the IPEDS status.