FAC Explorer

Audit 330348

FY End
2024-06-30
Total Expended
$5.74M
Findings
8
Programs
4
Organization: Pillar College and Subsidiaries (NJ)
Year: 2024 Accepted: 2024-12-02
Auditor: Capincrouse LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
512524 2024-001 Material Weakness Yes N
512525 2024-001 Material Weakness Yes N
512526 2024-002 Significant Deficiency - N
512527 2024-002 Significant Deficiency - N
1088966 2024-001 Material Weakness Yes N
1088967 2024-001 Material Weakness Yes N
1088968 2024-002 Significant Deficiency - N
1088969 2024-002 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $3.30M Yes 2
84.063 Federal Pell Grant Program $2.34M Yes 2
84.007 Federal Supplemental Educational Opportunity Grants $51,859 Yes 0
84.033 Federal Work-Study Program $44,314 Yes 0

Contacts

Name Title Type
NMWBFNX1UZQ3 Cindy Weaver Auditee
9738035000 Tyler Vanderven, CPA Auditor
No contacts on file

Notes to SEFA

Title: RELATIONSHIP TO THE CONSOLIDATED FINANCIAL STATEMENTS Accounting Policies: The accompanying schedule of expenditures of federal awards and state financial assistance (the schedule) includes the federal and state grant activity of Pillar College and Subsidiaries (College) under programs of the federal and New Jersey state governments for the year ending June 30, 2024. The information in the 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) and New Jersey OMB Circular 15-08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid (Circular 15-08). Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of, the basic consolidated 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 and Circular 15-08, 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 College is required to match certain federal or state 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 and state financial assistance (the schedule) includes the federal and state grant activity of Pillar College and Subsidiaries (College) under programs of the federal and New Jersey state governments for the year ending June 30, 2024. The information in the 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) and New Jersey OMB Circular 15-08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid (Circular 15-08). Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of, the basic consolidated 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 and Circular 15-08, 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 College is required to match certain federal or state 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 College did not provide any federal or state 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 and state financial assistance (the schedule) includes the federal and state grant activity of Pillar College and Subsidiaries (College) under programs of the federal and New Jersey state governments for the year ending June 30, 2024. The information in the 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) and New Jersey OMB Circular 15-08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid (Circular 15-08). Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of, the basic consolidated 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 and Circular 15-08, 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 College is required to match certain federal or state 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 College 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
Inaccurate and Untimely Return of Title IV Funds (R2T4) Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: When students withdrew either officially or unofficially, the College did not always return unearned Title IV aid timely or accurately. Criteria: 34 CFR 668.22 Questioned Costs: $3,655 Context: Out of 15 students tested, 5 modular students who withdrew during the audit period tested had funds returned late. All initial calculations were performed timely, however the returns were made 31 to 378 days late. Two of these returns were corrected as part of the audit process. The first student had $686 of Pell returned; the second student had a correction in the return amount - this was corrected by the College for a total of $2,969 in unsubsidized loans returned during the audit. Cause: All initial R2T4 calculations were performed timely by the third party administrator, however there was an oversight by the College when applying the return to the student account. Effect: Noncompliance with new R2T4 regulations regarding withdrawals from modular programs. Identification as repeat finding, if applicable: 2023-004 Recommendation: We recommend that the financial aid office work closely with their third party administrator and student accounts office to ensure that funds required to be returned as part of the R2T4 process are being processed timely. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-001
Inaccurate and Untimely Return of Title IV Funds (R2T4) Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: When students withdrew either officially or unofficially, the College did not always return unearned Title IV aid timely or accurately. Criteria: 34 CFR 668.22 Questioned Costs: $3,655 Context: Out of 15 students tested, 5 modular students who withdrew during the audit period tested had funds returned late. All initial calculations were performed timely, however the returns were made 31 to 378 days late. Two of these returns were corrected as part of the audit process. The first student had $686 of Pell returned; the second student had a correction in the return amount - this was corrected by the College for a total of $2,969 in unsubsidized loans returned during the audit. Cause: All initial R2T4 calculations were performed timely by the third party administrator, however there was an oversight by the College when applying the return to the student account. Effect: Noncompliance with new R2T4 regulations regarding withdrawals from modular programs. Identification as repeat finding, if applicable: 2023-004 Recommendation: We recommend that the financial aid office work closely with their third party administrator and student accounts office to ensure that funds required to be returned as part of the R2T4 process are being processed timely. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-002
Incorrect Enrollment Reporting to National Student Loan Data System (NSLDS) Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268 and 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: The College did not report enrollment information to the National Student Loan Data System (NSLDS) in a timely and accurate manner. Criteria: 34 CFR 690.83(b) and 34 CFR 685.309 Questioned Costs: $0 Context: Out of 77 students tested for proper NSLDS enrollment status, 2 students had not been reported to NSLDS, 1 student had not been properly reported as graduated to NSLDS, and 3 students had not been properly reported as withdrawn to NSLDS. All 6 students were updated during the audit process. Cause: A new update to the student information system had caused it to have issues processing NSLDS changes timely. The College is currently working with the student information system support to ensure the issue is resolved. 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 College put a system in place to ensure that enrollment is reported timely and accurately while the student information system issue is resolved. Additionally, we recommend that the College complete spot checks of NSLDS enrollment statuses throughout the year to ensure appropriate reporting. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-002
Incorrect Enrollment Reporting to National Student Loan Data System (NSLDS) Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268 and 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: The College did not report enrollment information to the National Student Loan Data System (NSLDS) in a timely and accurate manner. Criteria: 34 CFR 690.83(b) and 34 CFR 685.309 Questioned Costs: $0 Context: Out of 77 students tested for proper NSLDS enrollment status, 2 students had not been reported to NSLDS, 1 student had not been properly reported as graduated to NSLDS, and 3 students had not been properly reported as withdrawn to NSLDS. All 6 students were updated during the audit process. Cause: A new update to the student information system had caused it to have issues processing NSLDS changes timely. The College is currently working with the student information system support to ensure the issue is resolved. 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 College put a system in place to ensure that enrollment is reported timely and accurately while the student information system issue is resolved. Additionally, we recommend that the College complete spot checks of NSLDS enrollment statuses throughout the year to ensure appropriate reporting. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-001
Inaccurate and Untimely Return of Title IV Funds (R2T4) Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: When students withdrew either officially or unofficially, the College did not always return unearned Title IV aid timely or accurately. Criteria: 34 CFR 668.22 Questioned Costs: $3,655 Context: Out of 15 students tested, 5 modular students who withdrew during the audit period tested had funds returned late. All initial calculations were performed timely, however the returns were made 31 to 378 days late. Two of these returns were corrected as part of the audit process. The first student had $686 of Pell returned; the second student had a correction in the return amount - this was corrected by the College for a total of $2,969 in unsubsidized loans returned during the audit. Cause: All initial R2T4 calculations were performed timely by the third party administrator, however there was an oversight by the College when applying the return to the student account. Effect: Noncompliance with new R2T4 regulations regarding withdrawals from modular programs. Identification as repeat finding, if applicable: 2023-004 Recommendation: We recommend that the financial aid office work closely with their third party administrator and student accounts office to ensure that funds required to be returned as part of the R2T4 process are being processed timely. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-001
Inaccurate and Untimely Return of Title IV Funds (R2T4) Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: When students withdrew either officially or unofficially, the College did not always return unearned Title IV aid timely or accurately. Criteria: 34 CFR 668.22 Questioned Costs: $3,655 Context: Out of 15 students tested, 5 modular students who withdrew during the audit period tested had funds returned late. All initial calculations were performed timely, however the returns were made 31 to 378 days late. Two of these returns were corrected as part of the audit process. The first student had $686 of Pell returned; the second student had a correction in the return amount - this was corrected by the College for a total of $2,969 in unsubsidized loans returned during the audit. Cause: All initial R2T4 calculations were performed timely by the third party administrator, however there was an oversight by the College when applying the return to the student account. Effect: Noncompliance with new R2T4 regulations regarding withdrawals from modular programs. Identification as repeat finding, if applicable: 2023-004 Recommendation: We recommend that the financial aid office work closely with their third party administrator and student accounts office to ensure that funds required to be returned as part of the R2T4 process are being processed timely. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-002
Incorrect Enrollment Reporting to National Student Loan Data System (NSLDS) Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268 and 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: The College did not report enrollment information to the National Student Loan Data System (NSLDS) in a timely and accurate manner. Criteria: 34 CFR 690.83(b) and 34 CFR 685.309 Questioned Costs: $0 Context: Out of 77 students tested for proper NSLDS enrollment status, 2 students had not been reported to NSLDS, 1 student had not been properly reported as graduated to NSLDS, and 3 students had not been properly reported as withdrawn to NSLDS. All 6 students were updated during the audit process. Cause: A new update to the student information system had caused it to have issues processing NSLDS changes timely. The College is currently working with the student information system support to ensure the issue is resolved. 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 College put a system in place to ensure that enrollment is reported timely and accurately while the student information system issue is resolved. Additionally, we recommend that the College complete spot checks of NSLDS enrollment statuses throughout the year to ensure appropriate reporting. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-002
Incorrect Enrollment Reporting to National Student Loan Data System (NSLDS) Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268 and 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: The College did not report enrollment information to the National Student Loan Data System (NSLDS) in a timely and accurate manner. Criteria: 34 CFR 690.83(b) and 34 CFR 685.309 Questioned Costs: $0 Context: Out of 77 students tested for proper NSLDS enrollment status, 2 students had not been reported to NSLDS, 1 student had not been properly reported as graduated to NSLDS, and 3 students had not been properly reported as withdrawn to NSLDS. All 6 students were updated during the audit process. Cause: A new update to the student information system had caused it to have issues processing NSLDS changes timely. The College is currently working with the student information system support to ensure the issue is resolved. 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 College put a system in place to ensure that enrollment is reported timely and accurately while the student information system issue is resolved. Additionally, we recommend that the College complete spot checks of NSLDS enrollment statuses throughout the year to ensure appropriate reporting. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.