FAC Explorer

Audit 330798

FY End
2024-06-30
Total Expended
$2.95M
Findings
16
Programs
3
Organization: Certell, INC (IN)
Year: 2024 Accepted: 2024-12-04
Auditor: Sikich CPA LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
512974 2024-005 Significant Deficiency Yes L
512975 2024-002 Significant Deficiency - N
512976 2024-003 - - N
512977 2024-004 - - N
512978 2024-005 Significant Deficiency Yes L
512979 2024-001 - - N
512980 2024-003 - - N
512981 2024-005 Significant Deficiency Yes L
1089416 2024-005 Significant Deficiency Yes L
1089417 2024-002 Significant Deficiency - N
1089418 2024-003 - - N
1089419 2024-004 - - N
1089420 2024-005 Significant Deficiency Yes L
1089421 2024-001 - - N
1089422 2024-003 - - N
1089423 2024-005 Significant Deficiency Yes L

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $1.52M Yes 3
84.063 Federal Pell Grant Program $1.38M Yes 4
84.007 Federal Supplemental Educational Opportunity Grants $43,187 Yes 1

Contacts

Name Title Type
L4KZG4JVGFK9 Greg Wallis Auditee
3174288453 Ray Krouse Auditor
No contacts on file

Notes to SEFA

Title: FEDERAL LOAN PROGRAM Accounting Policies: The accompanying schedule of expenditures of federal awards is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Certell, Inc. has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. For the year ended June 30, 2024, Certell, Inc. acted as a pass-through agency for Direct Federal Stafford Loans (subsidized, unsubsidized and PLUS) to students and parents in the amount of $1,523,267.
Title: OTHER INFORMATION Accounting Policies: The accompanying schedule of expenditures of federal awards is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Certell, Inc. has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Certell, Inc. did not receive any federal insurance or federal noncash assistance and did not provide any amounts to sub-recipients.

Finding Details

Finding 2024-005
FINDING 2024-005: UNTIMELY ENROLLMENT STATUS REPORTING FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION ALN: 84.063,84.063, 84.268 FEDERAL AWARD YEAR: 2023-2024 Compliance Requirement: Reporting (L.) Criteria: Institutions are required to provide enrollment update responses to the Enrollment Reporting Roster File within fifteen days of receipt (34 CFR 685.309). PROGRAM NAME: FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANT PROGRAM, FEDERAL PELL GRANT PROGRAM , FEDERAL DIRECT LOAN PROGRAM ALN: 84.063,84.063, 84.268 FEDERAL AWARD YEAR: 2023-2024 Compliance Requirement: Reporting (L.) Criteria: Institutions are required to provide enrollment update responses to the Enrollment Reporting Roster File within fifteen days of receipt (34 CFR 685.309). Condition: The Institution did not provide an enrollment update response for April and June 2024. We consider this finding to be a significant deficiency. This is a repeat finding of prior year Finding 2023-001. Cause: The condition was caused by issues transferring to a new student information system. Effect: The result is the Department of Education was not made aware of the changes in student statuses in a timely manner. Question Costs: $0 Statistical sampling was not used when making sample selections. Recommendation: We recommend the Institution increase controls over enrollment reporting. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.
Finding 2024-002
FINDING 2024-002: INACCURATE REPORTING OF DISBURSEMENT DATES TO THE COMMON ORIGINATION AND DISBURSEMENT (COD) SYSTEM: FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION PROGRAM NAME: FEDERAL PELL GRANT PROGRAM ALN: 84.063 FEDERAL AWARD YEAR: 2023-2024 Compliance Requirement: Special Tests and Provisions (N.) - Disbursements Criteria: The disbursement amounts and dates reported to the Department of Education must be the amounts and dates of the actual disbursement to the students’ accounts (CFR 34 668.164). Condition: We tested forty files and dates of Title IV disbursements posted to account ledgers did not agree to the dates reported to the Common Origination and Disbursement (COD) System for six students. We consider this finding to be a significant deficiency. Cause: The condition was caused by issues transferring to a new student information system. Effect: The result is incorrect disbursement dates were reported to the Department of Education. Question Costs: $12,575 Statistical sampling was not used when making sample selections. Recommendation: We recommend the Institution correct the disbursement dates in COD and tighten controls over reporting disbursements dates. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.
Finding 2024-003
FINDING 2024-003: INCORRECT REFUND CALCULATION FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION PROGRAM NAME: FEDERAL PELL GRANT PROGRAM, FEDERAL DIRECT LOAN PROGRAM ALN: 84.063, 84.268 FEDERAL AWARD YEAR: 2023-2024 Compliance Requirement: Special Tests and Provisions (N.) - Return of Title IV Funds Criteria: An institution must use the Return to Title IV refund calculation (34 CFR 668.22). Condition: We tested eighteen drop students and found one incorrect refund calculation. We consider this finding to be an instance of non-compliance. Cause: The condition was caused by a manual oversight in the financial aid department. Effect: The result is the Institution retained funds which should have been refunded to the Department of Education. Question Costs: $50 Statistical sampling was not used when making sample selections. Recommendation: We recommend the Institution refund $50 to the Department of Education and increase controls over refund calculations. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.
Finding 2024-004
FINDING 2024-004: UNPAID REFUND FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION PROGRAM NAME: FEDERAL PELL GRANT PROGRAM ALN: 84.063 FEDERAL AWARD YEAR: 2023-2024 Compliance Requirement: Special Tests and Provisions (N.) - Return of Title IV Funds Criteria: Refunds, if necessary, must be calculated and made within 45 calendar days of the date the student withdraws (34 CFR 668.22, 685.306). Condition: We tested eighteen drop students and noted one unpaid refund. We consider this finding to be an instance of non-compliance. Cause: The condition was caused by issues transferring to a new student information system. Effect: The result is the Institution is retaining monies which need to be returned to the Department of Education. Question Costs: $2,071 Statistical sampling was not used when making sample selections. Recommendation: We recommend the Institution refund the $2,071 to the Department of Education and increase controls over paying refunds. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.
Finding 2024-005
FINDING 2024-005: UNTIMELY ENROLLMENT STATUS REPORTING FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION ALN: 84.063,84.063, 84.268 FEDERAL AWARD YEAR: 2023-2024 Compliance Requirement: Reporting (L.) Criteria: Institutions are required to provide enrollment update responses to the Enrollment Reporting Roster File within fifteen days of receipt (34 CFR 685.309). PROGRAM NAME: FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANT PROGRAM, FEDERAL PELL GRANT PROGRAM , FEDERAL DIRECT LOAN PROGRAM ALN: 84.063,84.063, 84.268 FEDERAL AWARD YEAR: 2023-2024 Compliance Requirement: Reporting (L.) Criteria: Institutions are required to provide enrollment update responses to the Enrollment Reporting Roster File within fifteen days of receipt (34 CFR 685.309). Condition: The Institution did not provide an enrollment update response for April and June 2024. We consider this finding to be a significant deficiency. This is a repeat finding of prior year Finding 2023-001. Cause: The condition was caused by issues transferring to a new student information system. Effect: The result is the Department of Education was not made aware of the changes in student statuses in a timely manner. Question Costs: $0 Statistical sampling was not used when making sample selections. Recommendation: We recommend the Institution increase controls over enrollment reporting. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.
Finding 2024-001
FINDING 2024-001: UNPAID CREDIT BALANCE FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION PROGRAM NAME: FEDERAL DIRECT LOAN PROGRAM ALN: 84.268 FEDERAL AWARD YEAR: 2023-2024 Compliance Requirement: Special Tests and Provisions (N.) - Disbursements Criteria: An institution must pay credit balances to students within fourteen days of the creation of such credit or within fourteen days of the date the institution performs the Return calculation for withdrawn students. When a valid waiver has been obtained, an institution must pay the remaining balance on loan funds by the end of the loan period and any remaining other Title IV program funds by the end of the last payment period in the award year for which the funds were awarded (34 CFR 668.164 and 668.165). Condition: We tested forty files and one credit balance was not paid back to one student. We consider this finding to be an instance of non-compliance. Cause: The condition was caused by using more than $200 in current year funds to pay prior year balance. Effect: As a result, the Institution was holding funds that needed to be returned to the student. Question Costs: $850 Statistical sampling was not used when making sample selections. Recommendation: As the funds were used to pay prior academic year tuition, we recommend the Institution increase controls over credit balances. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.
Finding 2024-003
FINDING 2024-003: INCORRECT REFUND CALCULATION FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION PROGRAM NAME: FEDERAL PELL GRANT PROGRAM, FEDERAL DIRECT LOAN PROGRAM ALN: 84.063, 84.268 FEDERAL AWARD YEAR: 2023-2024 Compliance Requirement: Special Tests and Provisions (N.) - Return of Title IV Funds Criteria: An institution must use the Return to Title IV refund calculation (34 CFR 668.22). Condition: We tested eighteen drop students and found one incorrect refund calculation. We consider this finding to be an instance of non-compliance. Cause: The condition was caused by a manual oversight in the financial aid department. Effect: The result is the Institution retained funds which should have been refunded to the Department of Education. Question Costs: $50 Statistical sampling was not used when making sample selections. Recommendation: We recommend the Institution refund $50 to the Department of Education and increase controls over refund calculations. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.
Finding 2024-005
FINDING 2024-005: UNTIMELY ENROLLMENT STATUS REPORTING FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION ALN: 84.063,84.063, 84.268 FEDERAL AWARD YEAR: 2023-2024 Compliance Requirement: Reporting (L.) Criteria: Institutions are required to provide enrollment update responses to the Enrollment Reporting Roster File within fifteen days of receipt (34 CFR 685.309). PROGRAM NAME: FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANT PROGRAM, FEDERAL PELL GRANT PROGRAM , FEDERAL DIRECT LOAN PROGRAM ALN: 84.063,84.063, 84.268 FEDERAL AWARD YEAR: 2023-2024 Compliance Requirement: Reporting (L.) Criteria: Institutions are required to provide enrollment update responses to the Enrollment Reporting Roster File within fifteen days of receipt (34 CFR 685.309). Condition: The Institution did not provide an enrollment update response for April and June 2024. We consider this finding to be a significant deficiency. This is a repeat finding of prior year Finding 2023-001. Cause: The condition was caused by issues transferring to a new student information system. Effect: The result is the Department of Education was not made aware of the changes in student statuses in a timely manner. Question Costs: $0 Statistical sampling was not used when making sample selections. Recommendation: We recommend the Institution increase controls over enrollment reporting. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.
Finding 2024-005
FINDING 2024-005: UNTIMELY ENROLLMENT STATUS REPORTING FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION ALN: 84.063,84.063, 84.268 FEDERAL AWARD YEAR: 2023-2024 Compliance Requirement: Reporting (L.) Criteria: Institutions are required to provide enrollment update responses to the Enrollment Reporting Roster File within fifteen days of receipt (34 CFR 685.309). PROGRAM NAME: FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANT PROGRAM, FEDERAL PELL GRANT PROGRAM , FEDERAL DIRECT LOAN PROGRAM ALN: 84.063,84.063, 84.268 FEDERAL AWARD YEAR: 2023-2024 Compliance Requirement: Reporting (L.) Criteria: Institutions are required to provide enrollment update responses to the Enrollment Reporting Roster File within fifteen days of receipt (34 CFR 685.309). Condition: The Institution did not provide an enrollment update response for April and June 2024. We consider this finding to be a significant deficiency. This is a repeat finding of prior year Finding 2023-001. Cause: The condition was caused by issues transferring to a new student information system. Effect: The result is the Department of Education was not made aware of the changes in student statuses in a timely manner. Question Costs: $0 Statistical sampling was not used when making sample selections. Recommendation: We recommend the Institution increase controls over enrollment reporting. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.
Finding 2024-002
FINDING 2024-002: INACCURATE REPORTING OF DISBURSEMENT DATES TO THE COMMON ORIGINATION AND DISBURSEMENT (COD) SYSTEM: FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION PROGRAM NAME: FEDERAL PELL GRANT PROGRAM ALN: 84.063 FEDERAL AWARD YEAR: 2023-2024 Compliance Requirement: Special Tests and Provisions (N.) - Disbursements Criteria: The disbursement amounts and dates reported to the Department of Education must be the amounts and dates of the actual disbursement to the students’ accounts (CFR 34 668.164). Condition: We tested forty files and dates of Title IV disbursements posted to account ledgers did not agree to the dates reported to the Common Origination and Disbursement (COD) System for six students. We consider this finding to be a significant deficiency. Cause: The condition was caused by issues transferring to a new student information system. Effect: The result is incorrect disbursement dates were reported to the Department of Education. Question Costs: $12,575 Statistical sampling was not used when making sample selections. Recommendation: We recommend the Institution correct the disbursement dates in COD and tighten controls over reporting disbursements dates. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.
Finding 2024-003
FINDING 2024-003: INCORRECT REFUND CALCULATION FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION PROGRAM NAME: FEDERAL PELL GRANT PROGRAM, FEDERAL DIRECT LOAN PROGRAM ALN: 84.063, 84.268 FEDERAL AWARD YEAR: 2023-2024 Compliance Requirement: Special Tests and Provisions (N.) - Return of Title IV Funds Criteria: An institution must use the Return to Title IV refund calculation (34 CFR 668.22). Condition: We tested eighteen drop students and found one incorrect refund calculation. We consider this finding to be an instance of non-compliance. Cause: The condition was caused by a manual oversight in the financial aid department. Effect: The result is the Institution retained funds which should have been refunded to the Department of Education. Question Costs: $50 Statistical sampling was not used when making sample selections. Recommendation: We recommend the Institution refund $50 to the Department of Education and increase controls over refund calculations. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.
Finding 2024-004
FINDING 2024-004: UNPAID REFUND FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION PROGRAM NAME: FEDERAL PELL GRANT PROGRAM ALN: 84.063 FEDERAL AWARD YEAR: 2023-2024 Compliance Requirement: Special Tests and Provisions (N.) - Return of Title IV Funds Criteria: Refunds, if necessary, must be calculated and made within 45 calendar days of the date the student withdraws (34 CFR 668.22, 685.306). Condition: We tested eighteen drop students and noted one unpaid refund. We consider this finding to be an instance of non-compliance. Cause: The condition was caused by issues transferring to a new student information system. Effect: The result is the Institution is retaining monies which need to be returned to the Department of Education. Question Costs: $2,071 Statistical sampling was not used when making sample selections. Recommendation: We recommend the Institution refund the $2,071 to the Department of Education and increase controls over paying refunds. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.
Finding 2024-005
FINDING 2024-005: UNTIMELY ENROLLMENT STATUS REPORTING FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION ALN: 84.063,84.063, 84.268 FEDERAL AWARD YEAR: 2023-2024 Compliance Requirement: Reporting (L.) Criteria: Institutions are required to provide enrollment update responses to the Enrollment Reporting Roster File within fifteen days of receipt (34 CFR 685.309). PROGRAM NAME: FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANT PROGRAM, FEDERAL PELL GRANT PROGRAM , FEDERAL DIRECT LOAN PROGRAM ALN: 84.063,84.063, 84.268 FEDERAL AWARD YEAR: 2023-2024 Compliance Requirement: Reporting (L.) Criteria: Institutions are required to provide enrollment update responses to the Enrollment Reporting Roster File within fifteen days of receipt (34 CFR 685.309). Condition: The Institution did not provide an enrollment update response for April and June 2024. We consider this finding to be a significant deficiency. This is a repeat finding of prior year Finding 2023-001. Cause: The condition was caused by issues transferring to a new student information system. Effect: The result is the Department of Education was not made aware of the changes in student statuses in a timely manner. Question Costs: $0 Statistical sampling was not used when making sample selections. Recommendation: We recommend the Institution increase controls over enrollment reporting. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.
Finding 2024-001
FINDING 2024-001: UNPAID CREDIT BALANCE FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION PROGRAM NAME: FEDERAL DIRECT LOAN PROGRAM ALN: 84.268 FEDERAL AWARD YEAR: 2023-2024 Compliance Requirement: Special Tests and Provisions (N.) - Disbursements Criteria: An institution must pay credit balances to students within fourteen days of the creation of such credit or within fourteen days of the date the institution performs the Return calculation for withdrawn students. When a valid waiver has been obtained, an institution must pay the remaining balance on loan funds by the end of the loan period and any remaining other Title IV program funds by the end of the last payment period in the award year for which the funds were awarded (34 CFR 668.164 and 668.165). Condition: We tested forty files and one credit balance was not paid back to one student. We consider this finding to be an instance of non-compliance. Cause: The condition was caused by using more than $200 in current year funds to pay prior year balance. Effect: As a result, the Institution was holding funds that needed to be returned to the student. Question Costs: $850 Statistical sampling was not used when making sample selections. Recommendation: As the funds were used to pay prior academic year tuition, we recommend the Institution increase controls over credit balances. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.
Finding 2024-003
FINDING 2024-003: INCORRECT REFUND CALCULATION FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION PROGRAM NAME: FEDERAL PELL GRANT PROGRAM, FEDERAL DIRECT LOAN PROGRAM ALN: 84.063, 84.268 FEDERAL AWARD YEAR: 2023-2024 Compliance Requirement: Special Tests and Provisions (N.) - Return of Title IV Funds Criteria: An institution must use the Return to Title IV refund calculation (34 CFR 668.22). Condition: We tested eighteen drop students and found one incorrect refund calculation. We consider this finding to be an instance of non-compliance. Cause: The condition was caused by a manual oversight in the financial aid department. Effect: The result is the Institution retained funds which should have been refunded to the Department of Education. Question Costs: $50 Statistical sampling was not used when making sample selections. Recommendation: We recommend the Institution refund $50 to the Department of Education and increase controls over refund calculations. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.
Finding 2024-005
FINDING 2024-005: UNTIMELY ENROLLMENT STATUS REPORTING FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION ALN: 84.063,84.063, 84.268 FEDERAL AWARD YEAR: 2023-2024 Compliance Requirement: Reporting (L.) Criteria: Institutions are required to provide enrollment update responses to the Enrollment Reporting Roster File within fifteen days of receipt (34 CFR 685.309). PROGRAM NAME: FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANT PROGRAM, FEDERAL PELL GRANT PROGRAM , FEDERAL DIRECT LOAN PROGRAM ALN: 84.063,84.063, 84.268 FEDERAL AWARD YEAR: 2023-2024 Compliance Requirement: Reporting (L.) Criteria: Institutions are required to provide enrollment update responses to the Enrollment Reporting Roster File within fifteen days of receipt (34 CFR 685.309). Condition: The Institution did not provide an enrollment update response for April and June 2024. We consider this finding to be a significant deficiency. This is a repeat finding of prior year Finding 2023-001. Cause: The condition was caused by issues transferring to a new student information system. Effect: The result is the Department of Education was not made aware of the changes in student statuses in a timely manner. Question Costs: $0 Statistical sampling was not used when making sample selections. Recommendation: We recommend the Institution increase controls over enrollment reporting. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.