Audit 329658

FY End
2024-06-30
Total Expended
$33.75M
Findings
22
Programs
18
Year: 2024 Accepted: 2024-11-23

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
511931 2024-001 Significant Deficiency - E
511932 2024-001 Significant Deficiency - E
511933 2024-001 Significant Deficiency - E
511934 2024-002 Significant Deficiency - P
511935 2024-002 Significant Deficiency - P
511936 2024-002 Significant Deficiency - P
511937 2024-003 Significant Deficiency - P
511938 2024-003 Significant Deficiency - P
511939 2024-003 Significant Deficiency - P
511940 2024-004 Significant Deficiency Yes I
511941 2024-004 Significant Deficiency Yes I
1088373 2024-001 Significant Deficiency - E
1088374 2024-001 Significant Deficiency - E
1088375 2024-001 Significant Deficiency - E
1088376 2024-002 Significant Deficiency - P
1088377 2024-002 Significant Deficiency - P
1088378 2024-002 Significant Deficiency - P
1088379 2024-003 Significant Deficiency - P
1088380 2024-003 Significant Deficiency - P
1088381 2024-003 Significant Deficiency - P
1088382 2024-004 Significant Deficiency Yes I
1088383 2024-004 Significant Deficiency Yes I

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $18.59M Yes 3
84.063 Federal Pell Grant Program $7.04M Yes 3
84.031 Higher Education Institutional Aid $855,983 - 1
11.028 Connecting Minority Communities Pilot Program $701,874 - 0
84.038 Federal Perkins Loans Outstanding $573,040 Yes 0
84.007 Federal Supplemental Educational Opportunity Grants $460,369 Yes 3
15.904 Historic Preservation Fund Grants-in-Aid $414,268 - 0
84.033 Federal Work-Study Program $209,403 Yes 0
43.009 Mission Support $140,415 - 0
47.076 Stem Education (formerly Education and Human Resources) $87,223 - 0
47.070 Computer and Information Science and Engineering $53,354 - 0
93.855 Allergy and Infectious Diseases Research $37,476 - 0
93.113 Environmental Health $24,603 - 0
93.859 Biomedical Research and Research Training $14,454 - 0
93.788 Opioid Str $12,752 - 0
43.008 Office of Stem Engagement (ostem) $12,299 - 0
84.116 Fund for the Improvement of Postsecondary Education $11,320 - 0
43.001 Science $9,743 - 0

Contacts

Name Title Type
T59JHM69NCZ3 Wilbourne Rusere Auditee
3366245080 Andrew Lee Auditor
No contacts on file

Notes to SEFA

Title: FEDERAL PERKINS LOAN PROGRAM Accounting Policies: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Lincoln University of the Commonwealth System of Higher Education, Inc. 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 2 CFR 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 University, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the University. BASIS OF PRESENTATION Expenditures reported on the accompanying Schedule for the year ended June 30, 2024, are presented 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 University has negotiated facilities and administrative cost rates for use on federal grants, contracts, and other agreements with the federal government. The negotiated predetermined rates are 55% on-campus and 20% off-campus, and are effective from July 1, 2016, through June 30, 2021. After June 30, 2021, the provisional rates of 55% on campus and 20% off campus will apply until amended. The Federal Perkins Loan Program is administered directly by the University, and balances and transactions relating to this program are included in the University’s basic financial statements. The Federal Perkins Loan Program ended on September 30, 2017, with final disbursements permitted through June 30, 2018. The University’s portion of the loans outstanding at the beginning of the year and loans made during the year are included in the federal expenditures presented in the Schedule. Federal Perkins loans outstanding as of June 30, 2024 totaled $362,762.
Title: WILLIAM D. FORD FEDERAL DIRECT LOAN PROGRAM Accounting Policies: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Lincoln University of the Commonwealth System of Higher Education, Inc. 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 2 CFR 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 University, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the University. BASIS OF PRESENTATION Expenditures reported on the accompanying Schedule for the year ended June 30, 2024, are presented 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 University has negotiated facilities and administrative cost rates for use on federal grants, contracts, and other agreements with the federal government. The negotiated predetermined rates are 55% on-campus and 20% off-campus, and are effective from July 1, 2016, through June 30, 2021. After June 30, 2021, the provisional rates of 55% on campus and 20% off campus will apply until amended. The University participates in the Federal Direct Loan Program (ALN No. 84.268). During the year ended June 30, 2024, the University disbursed to students the following amount of new loans under the Federal Direct Loan Program: Stafford Loans - Amount expended: 4,897,268 Unsubsidized Loans - Amount expended: 6,010,144 Plus Loans - Amount expended: 7,680,756 Total: $18,588,168
Title: STUDENT FINANCIAL AID INSTITUTIONAL AND PROGRAM ELIGIBILITY METRICS Accounting Policies: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Lincoln University of the Commonwealth System of Higher Education, Inc. 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 2 CFR 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 University, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the University. BASIS OF PRESENTATION Expenditures reported on the accompanying Schedule for the year ended June 30, 2024, are presented 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 University has negotiated facilities and administrative cost rates for use on federal grants, contracts, and other agreements with the federal government. The negotiated predetermined rates are 55% on-campus and 20% off-campus, and are effective from July 1, 2016, through June 30, 2021. After June 30, 2021, the provisional rates of 55% on campus and 20% off campus will apply until amended. STUDENT FINANCIAL AID INSTITUTIONAL AND PROGRAM ELIGIBILITY METRICS The Institution is in compliance with the following institutional and program eligibility requirements under the Higher Education Act of 1965 and Federal regulations under 34 CFR 668.23: -Correspondence courses the institution offers under 34 CFR 600.7(b) and (g) -Regular students that enroll in correspondence courses under 34 CFR 600.7(b) and (g) -Institution’s regular students that are incarcerated under 34 CFR 600.7(c) and (g) -Completion rates for confined or incarcerated individuals enrolled in non-degree programs at nonprofit institutions under 34 CFR 600.7(c)(3)(ii) and (g) -Institution’s regular students that lack a high school diploma or its equivalent under 34 CFR 600.7(d) and (g) -Completion rates for short-term programs under 34 CFR 668.8(f) and (g) -Placement rates for short-term programs under https://www.ecfr.gov/current/title-34/subtitle-B/chapter-VI/part-668/subpart-A/section-668.8 34 CFR 668.8(e)(2).

Finding Details

2024 – 001 Federal Agency: Department of Education Federal Program Name: Student Financial Assistance Cluster Assistance Listing Numbers: 84.007 – Federal Supplemental Education Opportunity Grants 84.063 – Federal Pell Grant Program 84.268 – Federal Direct Student Loans Award Period: July 1, 2023 through June 30, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 668.164(e) states, "Whenever an institution disburses title IV, HEA program funds by crediting a student's account and the total amount of all title IV, HEA program funds credited exceeds the amount of tuition and fees, room and board, and other authorized charges the institution assessed the student, the institution must pay the resulting credit balance directly to the student or parent as soon as possible but (1) No later than 14 days after the balance occurred if the credit balance occurred after the first day of class of a payment period; or (2) No later than 14 days after the first day of class of a payment period if the credit balance occurred on or before the first day of class of that payment period. Condition: Through our testing of 64 students whose accounts had a credit balance resulting from federal funds during the year, we noted that 6 students did not have the credit balance refunded within the 14-day period. Questioned Costs: N/A Context: During our testing, we noted that six students were owed a Title IV credit refund that was not completed within the 14-day period. Cause: The University did not properly review Credit Balance required procedures. Effect: The University did not refund students within 14 days for credit balances that arose from federal funds as required by DOE regulations. Repeat Finding: No. Recommendation: We recommend that the University put a process in place to refund student credit balances that arose from federal funds within 14 days. Views of responsible officials: Management agrees with the findings and has developed a plan to correct the finding.
2024 – 001 Federal Agency: Department of Education Federal Program Name: Student Financial Assistance Cluster Assistance Listing Numbers: 84.007 – Federal Supplemental Education Opportunity Grants 84.063 – Federal Pell Grant Program 84.268 – Federal Direct Student Loans Award Period: July 1, 2023 through June 30, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 668.164(e) states, "Whenever an institution disburses title IV, HEA program funds by crediting a student's account and the total amount of all title IV, HEA program funds credited exceeds the amount of tuition and fees, room and board, and other authorized charges the institution assessed the student, the institution must pay the resulting credit balance directly to the student or parent as soon as possible but (1) No later than 14 days after the balance occurred if the credit balance occurred after the first day of class of a payment period; or (2) No later than 14 days after the first day of class of a payment period if the credit balance occurred on or before the first day of class of that payment period. Condition: Through our testing of 64 students whose accounts had a credit balance resulting from federal funds during the year, we noted that 6 students did not have the credit balance refunded within the 14-day period. Questioned Costs: N/A Context: During our testing, we noted that six students were owed a Title IV credit refund that was not completed within the 14-day period. Cause: The University did not properly review Credit Balance required procedures. Effect: The University did not refund students within 14 days for credit balances that arose from federal funds as required by DOE regulations. Repeat Finding: No. Recommendation: We recommend that the University put a process in place to refund student credit balances that arose from federal funds within 14 days. Views of responsible officials: Management agrees with the findings and has developed a plan to correct the finding.
2024 – 001 Federal Agency: Department of Education Federal Program Name: Student Financial Assistance Cluster Assistance Listing Numbers: 84.007 – Federal Supplemental Education Opportunity Grants 84.063 – Federal Pell Grant Program 84.268 – Federal Direct Student Loans Award Period: July 1, 2023 through June 30, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 668.164(e) states, "Whenever an institution disburses title IV, HEA program funds by crediting a student's account and the total amount of all title IV, HEA program funds credited exceeds the amount of tuition and fees, room and board, and other authorized charges the institution assessed the student, the institution must pay the resulting credit balance directly to the student or parent as soon as possible but (1) No later than 14 days after the balance occurred if the credit balance occurred after the first day of class of a payment period; or (2) No later than 14 days after the first day of class of a payment period if the credit balance occurred on or before the first day of class of that payment period. Condition: Through our testing of 64 students whose accounts had a credit balance resulting from federal funds during the year, we noted that 6 students did not have the credit balance refunded within the 14-day period. Questioned Costs: N/A Context: During our testing, we noted that six students were owed a Title IV credit refund that was not completed within the 14-day period. Cause: The University did not properly review Credit Balance required procedures. Effect: The University did not refund students within 14 days for credit balances that arose from federal funds as required by DOE regulations. Repeat Finding: No. Recommendation: We recommend that the University put a process in place to refund student credit balances that arose from federal funds within 14 days. Views of responsible officials: Management agrees with the findings and has developed a plan to correct the finding.
2024 – 002 Federal Agency: Department of Education Federal Program Name: Student Financial Assistance Cluster Assistance Listing Numbers: 84.007 – Federal Supplemental Education Opportunity Grants 84.063 – Federal Pell Grant Program 84.268 – Federal Direct Student Loans Award Period: July 1, 2023 through June 30, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 668.164(h)(2) states that an institution that attempts to disburse funds by check and the check is not cashed, the institution must return the funds to the Secretary no later than 240 days after the date it issued that check. Condition: Eight checks totaling $494.20 related to student refunds of Title IV federal financial aid were outstanding more than 240 days as of June 30, 2024. Questioned Costs: $494.20 Context: The University did not have an official process is in place to ensure the funds never escheat back to the state or other agencies. Cause: The University did not properly review SFA Outstanding Student Title IV Check required procedures. Effect: The University is not in compliance with Department of Education requirements that all student refund checks that are outstanding for more than 240 days be returned to the Department. Recommendation: We recommend that the University review its procedures related to outstanding student refund checks to ensure they are being returned to the Department of Education after 240 days. Views of responsible officials: Management agrees with the findings and has developed a plan to correct the finding.
2024 – 002 Federal Agency: Department of Education Federal Program Name: Student Financial Assistance Cluster Assistance Listing Numbers: 84.007 – Federal Supplemental Education Opportunity Grants 84.063 – Federal Pell Grant Program 84.268 – Federal Direct Student Loans Award Period: July 1, 2023 through June 30, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 668.164(h)(2) states that an institution that attempts to disburse funds by check and the check is not cashed, the institution must return the funds to the Secretary no later than 240 days after the date it issued that check. Condition: Eight checks totaling $494.20 related to student refunds of Title IV federal financial aid were outstanding more than 240 days as of June 30, 2024. Questioned Costs: $494.20 Context: The University did not have an official process is in place to ensure the funds never escheat back to the state or other agencies. Cause: The University did not properly review SFA Outstanding Student Title IV Check required procedures. Effect: The University is not in compliance with Department of Education requirements that all student refund checks that are outstanding for more than 240 days be returned to the Department. Recommendation: We recommend that the University review its procedures related to outstanding student refund checks to ensure they are being returned to the Department of Education after 240 days. Views of responsible officials: Management agrees with the findings and has developed a plan to correct the finding.
2024 – 002 Federal Agency: Department of Education Federal Program Name: Student Financial Assistance Cluster Assistance Listing Numbers: 84.007 – Federal Supplemental Education Opportunity Grants 84.063 – Federal Pell Grant Program 84.268 – Federal Direct Student Loans Award Period: July 1, 2023 through June 30, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 668.164(h)(2) states that an institution that attempts to disburse funds by check and the check is not cashed, the institution must return the funds to the Secretary no later than 240 days after the date it issued that check. Condition: Eight checks totaling $494.20 related to student refunds of Title IV federal financial aid were outstanding more than 240 days as of June 30, 2024. Questioned Costs: $494.20 Context: The University did not have an official process is in place to ensure the funds never escheat back to the state or other agencies. Cause: The University did not properly review SFA Outstanding Student Title IV Check required procedures. Effect: The University is not in compliance with Department of Education requirements that all student refund checks that are outstanding for more than 240 days be returned to the Department. Recommendation: We recommend that the University review its procedures related to outstanding student refund checks to ensure they are being returned to the Department of Education after 240 days. Views of responsible officials: Management agrees with the findings and has developed a plan to correct the finding.
2024 – 003 Federal Agency: Department of Education Federal Program Name: Student Financial Assistance Cluster Assistance Listing Numbers: 84.007 – Federal Supplemental Education Opportunity Grants 84.063 – Federal Pell Grant Program 84.268 – Federal Direct Student Loans Award Period: July 1, 2023 through June 30, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: Each University that participates in federal Title IV financial aid programs is required to obtain an Eligibility and Certification Approval Report. This report includes certain information about the University including which financial aid programs the University is eligible for, locations of the University and top management and board officials. Any time there is a change in top management, including the President, Director of Financial Aid and Senior VP for Business, Finance and Technology, this is required to be reported within 10 days. During the year, it was noted that changes were not always reported within the required 10 days. We recommend the University review their procedures around updating this report to ensure compliance with Department of Education requirements. Condition: The University had not updated changes in top management positions within the allotted 10-day timeframe. Questioned Costs: N/A Context: The University did not have an official process is in place to ensure top management positions were updated timely. Cause: The University did not properly update management positions on the Eligibility and Certification Approval Report in a timely fashion. Effect: The University is not in compliance with Department of Education requirements. Recommendation: We recommend that the University review its procedures related to updating the Eligibility and Certification Approval Report in a timely fashion. Views of responsible officials: Management agrees with the findings and has developed a plan to correct the finding.
2024 – 003 Federal Agency: Department of Education Federal Program Name: Student Financial Assistance Cluster Assistance Listing Numbers: 84.007 – Federal Supplemental Education Opportunity Grants 84.063 – Federal Pell Grant Program 84.268 – Federal Direct Student Loans Award Period: July 1, 2023 through June 30, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: Each University that participates in federal Title IV financial aid programs is required to obtain an Eligibility and Certification Approval Report. This report includes certain information about the University including which financial aid programs the University is eligible for, locations of the University and top management and board officials. Any time there is a change in top management, including the President, Director of Financial Aid and Senior VP for Business, Finance and Technology, this is required to be reported within 10 days. During the year, it was noted that changes were not always reported within the required 10 days. We recommend the University review their procedures around updating this report to ensure compliance with Department of Education requirements. Condition: The University had not updated changes in top management positions within the allotted 10-day timeframe. Questioned Costs: N/A Context: The University did not have an official process is in place to ensure top management positions were updated timely. Cause: The University did not properly update management positions on the Eligibility and Certification Approval Report in a timely fashion. Effect: The University is not in compliance with Department of Education requirements. Recommendation: We recommend that the University review its procedures related to updating the Eligibility and Certification Approval Report in a timely fashion. Views of responsible officials: Management agrees with the findings and has developed a plan to correct the finding.
2024 – 003 Federal Agency: Department of Education Federal Program Name: Student Financial Assistance Cluster Assistance Listing Numbers: 84.007 – Federal Supplemental Education Opportunity Grants 84.063 – Federal Pell Grant Program 84.268 – Federal Direct Student Loans Award Period: July 1, 2023 through June 30, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: Each University that participates in federal Title IV financial aid programs is required to obtain an Eligibility and Certification Approval Report. This report includes certain information about the University including which financial aid programs the University is eligible for, locations of the University and top management and board officials. Any time there is a change in top management, including the President, Director of Financial Aid and Senior VP for Business, Finance and Technology, this is required to be reported within 10 days. During the year, it was noted that changes were not always reported within the required 10 days. We recommend the University review their procedures around updating this report to ensure compliance with Department of Education requirements. Condition: The University had not updated changes in top management positions within the allotted 10-day timeframe. Questioned Costs: N/A Context: The University did not have an official process is in place to ensure top management positions were updated timely. Cause: The University did not properly update management positions on the Eligibility and Certification Approval Report in a timely fashion. Effect: The University is not in compliance with Department of Education requirements. Recommendation: We recommend that the University review its procedures related to updating the Eligibility and Certification Approval Report in a timely fashion. Views of responsible officials: Management agrees with the findings and has developed a plan to correct the finding.
2024 – 004 Federal Agency: Department of Education Federal Program Name: Higher Education Aid – Title III Assistance Listing Numbers: 84.031 Federal Award Identification Number and Year: P031E200019, P031B170023 and P031B220048, grants were awarded within the 2023-24 award year. Award Period: July 1, 2023, through June 30, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: When a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at SAM.gov, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180.300). Condition: During our testing of suspension and debarment, we noted the University did not have support for debarment checks five of the five vendors tested. Questioned Costs: N/A Context: During our testing of suspension and debarment, we noted the University was unable to provide support for debarment checks five of the five vendors tested. Cause: The University did not have support to verify debarment checks were completed before entering into agreements or occurring expenditures for five of the five vendors selected. Effect: Suspended or debarred vendors could have been charged to the grant, resulting in unallowable expenditures occurring. Repeat Finding: Yes – 2023-005. Recommendation: The University should evaluate their procedures surrounding the maintenance of suspension and debarment checks. Views of responsible officials: Management agrees with the findings and has developed a plan to correct the finding.
2024 – 004 Federal Agency: Department of Education Federal Program Name: Higher Education Aid – Title III Assistance Listing Numbers: 84.031 Federal Award Identification Number and Year: P031E200019, P031B170023 and P031B220048, grants were awarded within the 2023-24 award year. Award Period: July 1, 2023, through June 30, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: When a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at SAM.gov, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180.300). Condition: During our testing of suspension and debarment, we noted the University did not have support for debarment checks five of the five vendors tested. Questioned Costs: N/A Context: During our testing of suspension and debarment, we noted the University was unable to provide support for debarment checks five of the five vendors tested. Cause: The University did not have support to verify debarment checks were completed before entering into agreements or occurring expenditures for five of the five vendors selected. Effect: Suspended or debarred vendors could have been charged to the grant, resulting in unallowable expenditures occurring. Repeat Finding: Yes – 2023-005. Recommendation: The University should evaluate their procedures surrounding the maintenance of suspension and debarment checks. Views of responsible officials: Management agrees with the findings and has developed a plan to correct the finding.
2024 – 001 Federal Agency: Department of Education Federal Program Name: Student Financial Assistance Cluster Assistance Listing Numbers: 84.007 – Federal Supplemental Education Opportunity Grants 84.063 – Federal Pell Grant Program 84.268 – Federal Direct Student Loans Award Period: July 1, 2023 through June 30, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 668.164(e) states, "Whenever an institution disburses title IV, HEA program funds by crediting a student's account and the total amount of all title IV, HEA program funds credited exceeds the amount of tuition and fees, room and board, and other authorized charges the institution assessed the student, the institution must pay the resulting credit balance directly to the student or parent as soon as possible but (1) No later than 14 days after the balance occurred if the credit balance occurred after the first day of class of a payment period; or (2) No later than 14 days after the first day of class of a payment period if the credit balance occurred on or before the first day of class of that payment period. Condition: Through our testing of 64 students whose accounts had a credit balance resulting from federal funds during the year, we noted that 6 students did not have the credit balance refunded within the 14-day period. Questioned Costs: N/A Context: During our testing, we noted that six students were owed a Title IV credit refund that was not completed within the 14-day period. Cause: The University did not properly review Credit Balance required procedures. Effect: The University did not refund students within 14 days for credit balances that arose from federal funds as required by DOE regulations. Repeat Finding: No. Recommendation: We recommend that the University put a process in place to refund student credit balances that arose from federal funds within 14 days. Views of responsible officials: Management agrees with the findings and has developed a plan to correct the finding.
2024 – 001 Federal Agency: Department of Education Federal Program Name: Student Financial Assistance Cluster Assistance Listing Numbers: 84.007 – Federal Supplemental Education Opportunity Grants 84.063 – Federal Pell Grant Program 84.268 – Federal Direct Student Loans Award Period: July 1, 2023 through June 30, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 668.164(e) states, "Whenever an institution disburses title IV, HEA program funds by crediting a student's account and the total amount of all title IV, HEA program funds credited exceeds the amount of tuition and fees, room and board, and other authorized charges the institution assessed the student, the institution must pay the resulting credit balance directly to the student or parent as soon as possible but (1) No later than 14 days after the balance occurred if the credit balance occurred after the first day of class of a payment period; or (2) No later than 14 days after the first day of class of a payment period if the credit balance occurred on or before the first day of class of that payment period. Condition: Through our testing of 64 students whose accounts had a credit balance resulting from federal funds during the year, we noted that 6 students did not have the credit balance refunded within the 14-day period. Questioned Costs: N/A Context: During our testing, we noted that six students were owed a Title IV credit refund that was not completed within the 14-day period. Cause: The University did not properly review Credit Balance required procedures. Effect: The University did not refund students within 14 days for credit balances that arose from federal funds as required by DOE regulations. Repeat Finding: No. Recommendation: We recommend that the University put a process in place to refund student credit balances that arose from federal funds within 14 days. Views of responsible officials: Management agrees with the findings and has developed a plan to correct the finding.
2024 – 001 Federal Agency: Department of Education Federal Program Name: Student Financial Assistance Cluster Assistance Listing Numbers: 84.007 – Federal Supplemental Education Opportunity Grants 84.063 – Federal Pell Grant Program 84.268 – Federal Direct Student Loans Award Period: July 1, 2023 through June 30, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 668.164(e) states, "Whenever an institution disburses title IV, HEA program funds by crediting a student's account and the total amount of all title IV, HEA program funds credited exceeds the amount of tuition and fees, room and board, and other authorized charges the institution assessed the student, the institution must pay the resulting credit balance directly to the student or parent as soon as possible but (1) No later than 14 days after the balance occurred if the credit balance occurred after the first day of class of a payment period; or (2) No later than 14 days after the first day of class of a payment period if the credit balance occurred on or before the first day of class of that payment period. Condition: Through our testing of 64 students whose accounts had a credit balance resulting from federal funds during the year, we noted that 6 students did not have the credit balance refunded within the 14-day period. Questioned Costs: N/A Context: During our testing, we noted that six students were owed a Title IV credit refund that was not completed within the 14-day period. Cause: The University did not properly review Credit Balance required procedures. Effect: The University did not refund students within 14 days for credit balances that arose from federal funds as required by DOE regulations. Repeat Finding: No. Recommendation: We recommend that the University put a process in place to refund student credit balances that arose from federal funds within 14 days. Views of responsible officials: Management agrees with the findings and has developed a plan to correct the finding.
2024 – 002 Federal Agency: Department of Education Federal Program Name: Student Financial Assistance Cluster Assistance Listing Numbers: 84.007 – Federal Supplemental Education Opportunity Grants 84.063 – Federal Pell Grant Program 84.268 – Federal Direct Student Loans Award Period: July 1, 2023 through June 30, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 668.164(h)(2) states that an institution that attempts to disburse funds by check and the check is not cashed, the institution must return the funds to the Secretary no later than 240 days after the date it issued that check. Condition: Eight checks totaling $494.20 related to student refunds of Title IV federal financial aid were outstanding more than 240 days as of June 30, 2024. Questioned Costs: $494.20 Context: The University did not have an official process is in place to ensure the funds never escheat back to the state or other agencies. Cause: The University did not properly review SFA Outstanding Student Title IV Check required procedures. Effect: The University is not in compliance with Department of Education requirements that all student refund checks that are outstanding for more than 240 days be returned to the Department. Recommendation: We recommend that the University review its procedures related to outstanding student refund checks to ensure they are being returned to the Department of Education after 240 days. Views of responsible officials: Management agrees with the findings and has developed a plan to correct the finding.
2024 – 002 Federal Agency: Department of Education Federal Program Name: Student Financial Assistance Cluster Assistance Listing Numbers: 84.007 – Federal Supplemental Education Opportunity Grants 84.063 – Federal Pell Grant Program 84.268 – Federal Direct Student Loans Award Period: July 1, 2023 through June 30, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 668.164(h)(2) states that an institution that attempts to disburse funds by check and the check is not cashed, the institution must return the funds to the Secretary no later than 240 days after the date it issued that check. Condition: Eight checks totaling $494.20 related to student refunds of Title IV federal financial aid were outstanding more than 240 days as of June 30, 2024. Questioned Costs: $494.20 Context: The University did not have an official process is in place to ensure the funds never escheat back to the state or other agencies. Cause: The University did not properly review SFA Outstanding Student Title IV Check required procedures. Effect: The University is not in compliance with Department of Education requirements that all student refund checks that are outstanding for more than 240 days be returned to the Department. Recommendation: We recommend that the University review its procedures related to outstanding student refund checks to ensure they are being returned to the Department of Education after 240 days. Views of responsible officials: Management agrees with the findings and has developed a plan to correct the finding.
2024 – 002 Federal Agency: Department of Education Federal Program Name: Student Financial Assistance Cluster Assistance Listing Numbers: 84.007 – Federal Supplemental Education Opportunity Grants 84.063 – Federal Pell Grant Program 84.268 – Federal Direct Student Loans Award Period: July 1, 2023 through June 30, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 668.164(h)(2) states that an institution that attempts to disburse funds by check and the check is not cashed, the institution must return the funds to the Secretary no later than 240 days after the date it issued that check. Condition: Eight checks totaling $494.20 related to student refunds of Title IV federal financial aid were outstanding more than 240 days as of June 30, 2024. Questioned Costs: $494.20 Context: The University did not have an official process is in place to ensure the funds never escheat back to the state or other agencies. Cause: The University did not properly review SFA Outstanding Student Title IV Check required procedures. Effect: The University is not in compliance with Department of Education requirements that all student refund checks that are outstanding for more than 240 days be returned to the Department. Recommendation: We recommend that the University review its procedures related to outstanding student refund checks to ensure they are being returned to the Department of Education after 240 days. Views of responsible officials: Management agrees with the findings and has developed a plan to correct the finding.
2024 – 003 Federal Agency: Department of Education Federal Program Name: Student Financial Assistance Cluster Assistance Listing Numbers: 84.007 – Federal Supplemental Education Opportunity Grants 84.063 – Federal Pell Grant Program 84.268 – Federal Direct Student Loans Award Period: July 1, 2023 through June 30, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: Each University that participates in federal Title IV financial aid programs is required to obtain an Eligibility and Certification Approval Report. This report includes certain information about the University including which financial aid programs the University is eligible for, locations of the University and top management and board officials. Any time there is a change in top management, including the President, Director of Financial Aid and Senior VP for Business, Finance and Technology, this is required to be reported within 10 days. During the year, it was noted that changes were not always reported within the required 10 days. We recommend the University review their procedures around updating this report to ensure compliance with Department of Education requirements. Condition: The University had not updated changes in top management positions within the allotted 10-day timeframe. Questioned Costs: N/A Context: The University did not have an official process is in place to ensure top management positions were updated timely. Cause: The University did not properly update management positions on the Eligibility and Certification Approval Report in a timely fashion. Effect: The University is not in compliance with Department of Education requirements. Recommendation: We recommend that the University review its procedures related to updating the Eligibility and Certification Approval Report in a timely fashion. Views of responsible officials: Management agrees with the findings and has developed a plan to correct the finding.
2024 – 003 Federal Agency: Department of Education Federal Program Name: Student Financial Assistance Cluster Assistance Listing Numbers: 84.007 – Federal Supplemental Education Opportunity Grants 84.063 – Federal Pell Grant Program 84.268 – Federal Direct Student Loans Award Period: July 1, 2023 through June 30, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: Each University that participates in federal Title IV financial aid programs is required to obtain an Eligibility and Certification Approval Report. This report includes certain information about the University including which financial aid programs the University is eligible for, locations of the University and top management and board officials. Any time there is a change in top management, including the President, Director of Financial Aid and Senior VP for Business, Finance and Technology, this is required to be reported within 10 days. During the year, it was noted that changes were not always reported within the required 10 days. We recommend the University review their procedures around updating this report to ensure compliance with Department of Education requirements. Condition: The University had not updated changes in top management positions within the allotted 10-day timeframe. Questioned Costs: N/A Context: The University did not have an official process is in place to ensure top management positions were updated timely. Cause: The University did not properly update management positions on the Eligibility and Certification Approval Report in a timely fashion. Effect: The University is not in compliance with Department of Education requirements. Recommendation: We recommend that the University review its procedures related to updating the Eligibility and Certification Approval Report in a timely fashion. Views of responsible officials: Management agrees with the findings and has developed a plan to correct the finding.
2024 – 003 Federal Agency: Department of Education Federal Program Name: Student Financial Assistance Cluster Assistance Listing Numbers: 84.007 – Federal Supplemental Education Opportunity Grants 84.063 – Federal Pell Grant Program 84.268 – Federal Direct Student Loans Award Period: July 1, 2023 through June 30, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: Each University that participates in federal Title IV financial aid programs is required to obtain an Eligibility and Certification Approval Report. This report includes certain information about the University including which financial aid programs the University is eligible for, locations of the University and top management and board officials. Any time there is a change in top management, including the President, Director of Financial Aid and Senior VP for Business, Finance and Technology, this is required to be reported within 10 days. During the year, it was noted that changes were not always reported within the required 10 days. We recommend the University review their procedures around updating this report to ensure compliance with Department of Education requirements. Condition: The University had not updated changes in top management positions within the allotted 10-day timeframe. Questioned Costs: N/A Context: The University did not have an official process is in place to ensure top management positions were updated timely. Cause: The University did not properly update management positions on the Eligibility and Certification Approval Report in a timely fashion. Effect: The University is not in compliance with Department of Education requirements. Recommendation: We recommend that the University review its procedures related to updating the Eligibility and Certification Approval Report in a timely fashion. Views of responsible officials: Management agrees with the findings and has developed a plan to correct the finding.
2024 – 004 Federal Agency: Department of Education Federal Program Name: Higher Education Aid – Title III Assistance Listing Numbers: 84.031 Federal Award Identification Number and Year: P031E200019, P031B170023 and P031B220048, grants were awarded within the 2023-24 award year. Award Period: July 1, 2023, through June 30, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: When a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at SAM.gov, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180.300). Condition: During our testing of suspension and debarment, we noted the University did not have support for debarment checks five of the five vendors tested. Questioned Costs: N/A Context: During our testing of suspension and debarment, we noted the University was unable to provide support for debarment checks five of the five vendors tested. Cause: The University did not have support to verify debarment checks were completed before entering into agreements or occurring expenditures for five of the five vendors selected. Effect: Suspended or debarred vendors could have been charged to the grant, resulting in unallowable expenditures occurring. Repeat Finding: Yes – 2023-005. Recommendation: The University should evaluate their procedures surrounding the maintenance of suspension and debarment checks. Views of responsible officials: Management agrees with the findings and has developed a plan to correct the finding.
2024 – 004 Federal Agency: Department of Education Federal Program Name: Higher Education Aid – Title III Assistance Listing Numbers: 84.031 Federal Award Identification Number and Year: P031E200019, P031B170023 and P031B220048, grants were awarded within the 2023-24 award year. Award Period: July 1, 2023, through June 30, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: When a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and available at SAM.gov, (2) collecting a certification from the entity, or (3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180.300). Condition: During our testing of suspension and debarment, we noted the University did not have support for debarment checks five of the five vendors tested. Questioned Costs: N/A Context: During our testing of suspension and debarment, we noted the University was unable to provide support for debarment checks five of the five vendors tested. Cause: The University did not have support to verify debarment checks were completed before entering into agreements or occurring expenditures for five of the five vendors selected. Effect: Suspended or debarred vendors could have been charged to the grant, resulting in unallowable expenditures occurring. Repeat Finding: Yes – 2023-005. Recommendation: The University should evaluate their procedures surrounding the maintenance of suspension and debarment checks. Views of responsible officials: Management agrees with the findings and has developed a plan to correct the finding.