FAC Explorer

Audit 331527

FY End
2024-06-30
Total Expended
$1.00M
Findings
6
Programs
5
Organization: Calvary University (MO)
Year: 2024 Accepted: 2024-12-09
Auditor: Keller & Owens LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
513616 2024-001 Material Weakness - L
513617 2024-002 Material Weakness - EN
513618 2024-002 Material Weakness - EN
1090058 2024-001 Material Weakness - L
1090059 2024-002 Material Weakness - EN
1090060 2024-002 Material Weakness - EN

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $528,346 Yes 2
84.063 Federal Pell Grant Program $332,540 Yes 1
84.425 Education Stabilization Fund $26,026 - 0
84.033 Federal Work-Study Program $11,000 Yes 0
84.007 Federal Supplemental Educational Opportunity Grants $10,703 Yes 0

Contacts

Name Title Type
FZCMR5RKWAJ8 Tasha Young Auditee
8164256151 Richard A. Bili Auditor
No contacts on file

Notes to SEFA

Title: FEDERAL DIRECT STUDENT LOAN PROGRAM Accounting Policies: The schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Calvary University (the “University”), under programs of the federal government for the year ended June 30, 2024. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“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. The University includes loans granted under the Federal Direct Student Loans Program as expenditures of federal awards. Federal Direct Student Loan Program balances are not included in the financial statements of the University. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance wherein certain types of expenditures are not allowable or limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. If the University is required to match certain federal assistance, as defined by grant agreements, no such matching has been included as expenditures in the Schedule. De Minimis Rate Used: N Rate Explanation: Calvary University has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. During the fiscal year ended June 30, 2024, the University processed the following amount of new loans under the Federal Direct Student Loan Program (which includes Subsidized Loans, Unsubsidized Direct Student Loans, and Parent's Loans for Undergraduate Students):AL Number Amount Authorized Federal Direct Student Loan Program 84.268 $ 528,346
Title: FEDERAL PELL GRANT Accounting Policies: The schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Calvary University (the “University”), under programs of the federal government for the year ended June 30, 2024. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“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. The University includes loans granted under the Federal Direct Student Loans Program as expenditures of federal awards. Federal Direct Student Loan Program balances are not included in the financial statements of the University. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance wherein certain types of expenditures are not allowable or limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. If the University is required to match certain federal assistance, as defined by grant agreements, no such matching has been included as expenditures in the Schedule. De Minimis Rate Used: N Rate Explanation: Calvary University has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Included in the Federal Pell Grant expenditures is an administrative cost allowance of $335.
Title: FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANT Accounting Policies: The schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Calvary University (the “University”), under programs of the federal government for the year ended June 30, 2024. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“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. The University includes loans granted under the Federal Direct Student Loans Program as expenditures of federal awards. Federal Direct Student Loan Program balances are not included in the financial statements of the University. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance wherein certain types of expenditures are not allowable or limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. If the University is required to match certain federal assistance, as defined by grant agreements, no such matching has been included as expenditures in the Schedule. De Minimis Rate Used: N Rate Explanation: Calvary University has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The following is included as Federal Supplemental Educational Opportunity Grant (FSEOG) exependitures: Federal Share of Grants $10,703. Institutional Share of Grants $-0-. Total Federal Expenditures $10,703. The University received a waiver from the Department of Education for the institutional matching requirement for the year ended June 30, 2024.
Title: FEDERAL WORK STUDY Accounting Policies: The schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Calvary University (the “University”), under programs of the federal government for the year ended June 30, 2024. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“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. The University includes loans granted under the Federal Direct Student Loans Program as expenditures of federal awards. Federal Direct Student Loan Program balances are not included in the financial statements of the University. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance wherein certain types of expenditures are not allowable or limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. If the University is required to match certain federal assistance, as defined by grant agreements, no such matching has been included as expenditures in the Schedule. De Minimis Rate Used: N Rate Explanation: Calvary University has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The following is included as Federal Work Study (FWS) expenditures: Federal share of Federal Work Study Wages $10,096 Administrative cost allowance 904. Institutional share of Federal Work Study Wages -0- . Total FWS Expenditures$11,000. The University received a waiver from the Department of Education for the institutional matching requirement for the year ended June 30, 2024.

Finding Details

Finding 2024-001
Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not Applicable Program Name: Federal Direct Student Loan Program ALN and Program Expenditure: 84.268 ($528,346) Award Number: P268K241726 Federal Award Year: July 1, 2023 to June 30, 2024 Questioned Costs: N/A Condition Found: The bi-monthly National Student Loan Database System (“NSLDS”) Enrollment Reporting Summary Reports were not updated and returned to NSLDS during the year ended June 30, 2024. Therefore, student enrollment status changes were not reported timely to NSLDS. Criteria: NSLDS informs loan servicers of changes in a student’s enrollment status that indicate when the repayments or interest accrual begins and ends. The date a student enrolls, withdraws, graduates, or drops below half-time status should be reported accurately. The University is required to report the change in a student’s enrollment status to NSLDS within sixty days of the change. Cause: The former Financial Aid Director resigned in August 2023. NSLDS was updated on August 2, 2023 before the Financial Aid Director left the University. The Business Office took over several financial aid duties. The Business Office thought the third-party financial aid administrator was responsible for updating NSLDS. However, updating NSLDS was the responsibility of the University. Possible Asserted Effect: The loan services were not aware of the correct deferral, repayment, and interest calculation dates. Repeat Finding: There was not a similar finding in the previous year. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: The newly hired Financial Aid Director and business office staff should review and update the enrollment status, as necessary, for all students attending the University and receiving financial aid. The contract with the third-party administrator should be reviewed so the University understands which tasks they are responsible to complete. Management Response: Management agrees with the auditors’ finding and their recommendation. The Director of Financial Aid or business office staff will update the enrollment status for all students who obtained Federal Direct Student Loans from the University. The University will review its contract with their third-party financial aid administrator. The University will update their policies and procedures as needed.
Finding 2024-002
Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not Applicable Program Name: Federal Direct Student Loan Program Federal PELL Grant ALN and Program Expenditure: 84.268 ($528,346) 84.063 ($332,540) Award Number: P268K241726 P063P231726 Federal Award Year: July 1, 2023 to June 30, 2024 Questioned Costs: N/A Condition Found: The University has an adequate Satisfactory Academic Progress policy. Student GPAs and completion rates are reviewed at the end of each academic year. However, the University is not informing students when they are placed on financial aid suspension and how to appeal the decision. Criteria: The University is required to notify students of the financial aid ramifications of being placed on financial aid suspension, including the ability to appeal the decision and the steps that need to be taken to improve their GPA and/or completion percentage. Cause: The University issues academic suspension letters. However, the letters do not include the financial aid ramifications related to being placed on suspension. Possible Asserted Effect: The students were not aware that they were placed on financial aid suspension and thus ineligible to receive federal financial aid from the University. Repeat Finding: There was not a similar finding in the previous year. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: The Financial Aid Office staff should create a Financial Aid Suspension Letter outlining the financial aid ramifications related to being placed on suspension and include instructions on how to appeal the decision. Management Response: Management agrees with the auditors’ finding and their recommendation. The Business Office and the Director of Financial Aid is in the process of creating a Financial Aid Suspension Letter to notify students of the financial aid ramifications of being placed on financial aid suspension.
Finding 2024-002
Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not Applicable Program Name: Federal Direct Student Loan Program Federal PELL Grant ALN and Program Expenditure: 84.268 ($528,346) 84.063 ($332,540) Award Number: P268K241726 P063P231726 Federal Award Year: July 1, 2023 to June 30, 2024 Questioned Costs: N/A Condition Found: The University has an adequate Satisfactory Academic Progress policy. Student GPAs and completion rates are reviewed at the end of each academic year. However, the University is not informing students when they are placed on financial aid suspension and how to appeal the decision. Criteria: The University is required to notify students of the financial aid ramifications of being placed on financial aid suspension, including the ability to appeal the decision and the steps that need to be taken to improve their GPA and/or completion percentage. Cause: The University issues academic suspension letters. However, the letters do not include the financial aid ramifications related to being placed on suspension. Possible Asserted Effect: The students were not aware that they were placed on financial aid suspension and thus ineligible to receive federal financial aid from the University. Repeat Finding: There was not a similar finding in the previous year. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: The Financial Aid Office staff should create a Financial Aid Suspension Letter outlining the financial aid ramifications related to being placed on suspension and include instructions on how to appeal the decision. Management Response: Management agrees with the auditors’ finding and their recommendation. The Business Office and the Director of Financial Aid is in the process of creating a Financial Aid Suspension Letter to notify students of the financial aid ramifications of being placed on financial aid suspension.
Finding 2024-001
Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not Applicable Program Name: Federal Direct Student Loan Program ALN and Program Expenditure: 84.268 ($528,346) Award Number: P268K241726 Federal Award Year: July 1, 2023 to June 30, 2024 Questioned Costs: N/A Condition Found: The bi-monthly National Student Loan Database System (“NSLDS”) Enrollment Reporting Summary Reports were not updated and returned to NSLDS during the year ended June 30, 2024. Therefore, student enrollment status changes were not reported timely to NSLDS. Criteria: NSLDS informs loan servicers of changes in a student’s enrollment status that indicate when the repayments or interest accrual begins and ends. The date a student enrolls, withdraws, graduates, or drops below half-time status should be reported accurately. The University is required to report the change in a student’s enrollment status to NSLDS within sixty days of the change. Cause: The former Financial Aid Director resigned in August 2023. NSLDS was updated on August 2, 2023 before the Financial Aid Director left the University. The Business Office took over several financial aid duties. The Business Office thought the third-party financial aid administrator was responsible for updating NSLDS. However, updating NSLDS was the responsibility of the University. Possible Asserted Effect: The loan services were not aware of the correct deferral, repayment, and interest calculation dates. Repeat Finding: There was not a similar finding in the previous year. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: The newly hired Financial Aid Director and business office staff should review and update the enrollment status, as necessary, for all students attending the University and receiving financial aid. The contract with the third-party administrator should be reviewed so the University understands which tasks they are responsible to complete. Management Response: Management agrees with the auditors’ finding and their recommendation. The Director of Financial Aid or business office staff will update the enrollment status for all students who obtained Federal Direct Student Loans from the University. The University will review its contract with their third-party financial aid administrator. The University will update their policies and procedures as needed.
Finding 2024-002
Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not Applicable Program Name: Federal Direct Student Loan Program Federal PELL Grant ALN and Program Expenditure: 84.268 ($528,346) 84.063 ($332,540) Award Number: P268K241726 P063P231726 Federal Award Year: July 1, 2023 to June 30, 2024 Questioned Costs: N/A Condition Found: The University has an adequate Satisfactory Academic Progress policy. Student GPAs and completion rates are reviewed at the end of each academic year. However, the University is not informing students when they are placed on financial aid suspension and how to appeal the decision. Criteria: The University is required to notify students of the financial aid ramifications of being placed on financial aid suspension, including the ability to appeal the decision and the steps that need to be taken to improve their GPA and/or completion percentage. Cause: The University issues academic suspension letters. However, the letters do not include the financial aid ramifications related to being placed on suspension. Possible Asserted Effect: The students were not aware that they were placed on financial aid suspension and thus ineligible to receive federal financial aid from the University. Repeat Finding: There was not a similar finding in the previous year. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: The Financial Aid Office staff should create a Financial Aid Suspension Letter outlining the financial aid ramifications related to being placed on suspension and include instructions on how to appeal the decision. Management Response: Management agrees with the auditors’ finding and their recommendation. The Business Office and the Director of Financial Aid is in the process of creating a Financial Aid Suspension Letter to notify students of the financial aid ramifications of being placed on financial aid suspension.
Finding 2024-002
Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not Applicable Program Name: Federal Direct Student Loan Program Federal PELL Grant ALN and Program Expenditure: 84.268 ($528,346) 84.063 ($332,540) Award Number: P268K241726 P063P231726 Federal Award Year: July 1, 2023 to June 30, 2024 Questioned Costs: N/A Condition Found: The University has an adequate Satisfactory Academic Progress policy. Student GPAs and completion rates are reviewed at the end of each academic year. However, the University is not informing students when they are placed on financial aid suspension and how to appeal the decision. Criteria: The University is required to notify students of the financial aid ramifications of being placed on financial aid suspension, including the ability to appeal the decision and the steps that need to be taken to improve their GPA and/or completion percentage. Cause: The University issues academic suspension letters. However, the letters do not include the financial aid ramifications related to being placed on suspension. Possible Asserted Effect: The students were not aware that they were placed on financial aid suspension and thus ineligible to receive federal financial aid from the University. Repeat Finding: There was not a similar finding in the previous year. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: The Financial Aid Office staff should create a Financial Aid Suspension Letter outlining the financial aid ramifications related to being placed on suspension and include instructions on how to appeal the decision. Management Response: Management agrees with the auditors’ finding and their recommendation. The Business Office and the Director of Financial Aid is in the process of creating a Financial Aid Suspension Letter to notify students of the financial aid ramifications of being placed on financial aid suspension.