FAC Explorer

Audit 332741

FY End
2024-05-31
Total Expended
$3.17M
Findings
12
Programs
4
Organization: Arlington Baptist University (CO)
Year: 2024 Accepted: 2024-12-16
Auditor: Capincrouse LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
514419 2024-001 Material Weakness Yes N
514420 2024-002 Significant Deficiency Yes N
514421 2024-002 Significant Deficiency Yes N
514422 2024-003 Significant Deficiency Yes N
514423 2024-004 - - E
514424 2024-004 - - E
1090861 2024-001 Material Weakness Yes N
1090862 2024-002 Significant Deficiency Yes N
1090863 2024-002 Significant Deficiency Yes N
1090864 2024-003 Significant Deficiency Yes N
1090865 2024-004 - - E
1090866 2024-004 - - E

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $1.96M Yes 4
84.063 Federal Pell Grant Program $793,987 Yes 2
84.425 Covid-19 Education Stabilization Fund Heerf - Institutional Portion $400,883 - 0
84.033 Federal Work-Study Program $9,444 Yes 0

Contacts

Name Title Type
CFXCX2J894V5 David Ingram Auditee
8174618741 Junice Jones, CPA Auditor
No contacts on file

Notes to SEFA

Title: RELATIONSHIP TO CONSOLIDATED FINANCIAL STATEMENTS Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Arlington Baptist University (University) under programs of the federal government for the year ended May 31, 2024. The information in the schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). 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, 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 University is required to match certain federal 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 (the schedule) includes the federal grant activity of Arlington Baptist University (University) under programs of the federal government for the year ended May 31, 2024. The information in the schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). 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, 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 University is required to match certain federal 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 University did not provide any federal 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 (the schedule) includes the federal grant activity of Arlington Baptist University (University) under programs of the federal government for the year ended May 31, 2024. The information in the schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). 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, 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 University is required to match certain federal 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 University 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
Incorrect Enrollment Reporting to National Student Loan Data System (NSLDS) Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.268 Federal Award Identification #: 2023-2024 Award Year Condition: The University did not report enrollment information to the National Student Loan Data System (NSLDS) in a timely and accurate manner. Criteria: 34 CFR 685.309 Questioned Costs: $0 Context: Out of 54 students tested, 45 students had incorrect enrollment statuses reported, of which seven were withdrawals. Additionally, out of 14 students tested, seven students had incorrect program reporting to NSLDS. Cause: The University’s process has been manual to update all NSLDS reporting by student. 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: Yes, 2023-001 and 2022-002 Recommendation: We recommend the University put a system in place to ensure that all students are being reported to NSLDS, and that the University is completing spot checks of enrollment statuses to NSLDS. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-002
Return of Title IV (R2T4) Calculations Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: There were four incorrect calculations of returned funds for students that withdrew during the term due to incorrect calendar setups and late notifications of students not attending, resulting in late returns. Criteria: 34 CFR 668.22 Questioned Costs: $245 Context: Out of 8 students, two students who withdrew during the audit period tested had funds returned late due to late notifications of non-attendance. Three students had incorrect calculations due to incorrect calendar set ups and needing to recalculate pell for classes the students began attendance in prior to performing the return calculation. This resulted in Pell owed back to the government of $78 and FDL owed back of $167 at fiscal year-end. Additionally, one student was not offered a post withdrawal disbursement of $292 of loans. Because the dollar amounts are small and the error rate is higher, this is classified as a significant deficiency. All students were corrected during the audit process. Cause: The calendar setups for fall 2023 were not set up properly. Additionally, notifications of nonattendance were not sent to financial aid timely to perform return calculations. Effect: Incorrect amount of unearned Title IV funds returned and lack of offering a post withdrawal disbursement. Identification as repeat finding, if applicable: Yes, 2023-002, 2022-001, 2021-003, 2020-006, 2019-005, and 2018-005. Recommendation: We recommend the University review the calendar set ups and ensure the proper number of days are used in the calculations. Additionally, we recommend the University implement a way to notify financial aid timely when students are not attending so a return calculation can be done timely. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-002
Return of Title IV (R2T4) Calculations Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: There were four incorrect calculations of returned funds for students that withdrew during the term due to incorrect calendar setups and late notifications of students not attending, resulting in late returns. Criteria: 34 CFR 668.22 Questioned Costs: $245 Context: Out of 8 students, two students who withdrew during the audit period tested had funds returned late due to late notifications of non-attendance. Three students had incorrect calculations due to incorrect calendar set ups and needing to recalculate pell for classes the students began attendance in prior to performing the return calculation. This resulted in Pell owed back to the government of $78 and FDL owed back of $167 at fiscal year-end. Additionally, one student was not offered a post withdrawal disbursement of $292 of loans. Because the dollar amounts are small and the error rate is higher, this is classified as a significant deficiency. All students were corrected during the audit process. Cause: The calendar setups for fall 2023 were not set up properly. Additionally, notifications of nonattendance were not sent to financial aid timely to perform return calculations. Effect: Incorrect amount of unearned Title IV funds returned and lack of offering a post withdrawal disbursement. Identification as repeat finding, if applicable: Yes, 2023-002, 2022-001, 2021-003, 2020-006, 2019-005, and 2018-005. Recommendation: We recommend the University review the calendar set ups and ensure the proper number of days are used in the calculations. Additionally, we recommend the University implement a way to notify financial aid timely when students are not attending so a return calculation can be done timely. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-003
Lack of Documentation of Exit Counseling Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268 Federal Award Identification #: 2023-2024 Award Year Condition: The University did not retain evidence or provide exit counseling to all students who left or did not send exit counseling instructions timely. Criteria: 34 CFR 685.304(b) Questioned Costs: $0 Context: Out of 37 students tested for exit counseling, six students did not have any documentation of exit counseling being sent. The University is in the process of sending these students exit counseling notifications. Cause: These students were marked in the system as active, so they were not picked up with the report to send exit counseling. Effect: Documentation of exit counseling was not available. Exit counseling packets assist in reducing the default rate. The default rate for the University was 5.5% in 2019, 20.5% in 2018, and 21.8% in 2017. Official rates for 2020 and 2021 are listed at 0% due to COVID waivers. Identification as repeat finding, if applicable: Yes, 2023-003. Recommendation: We recommend the University implement a process where all students leaving the University are notified of exit counseling requirements and documentation is retained. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-004
Disbursements to Ineligible Students DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: Two students who did not begin attendance in a semester were paid federal aid. Criteria: 34 CFR 668.32(a), 34 CFR 600.2 Questioned Costs: $9,500 Context: Out of 51 tested for eligibility, two students did not begin attendance in an eligible program. One student’s aid was returned prior to the end of the semester but beyond the allowable 30 days. The other student’s aid was returned shortly after fiscal year-end. Cause: The system check to verify attendance did not catch these students as not having begun the semester. Effect: Federal aid was paid to an ineligible student. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend the University compare a listing of students who have begun attendance to federal aid paid and return any federal aid paid to ineligible students. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-004
Disbursements to Ineligible Students DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: Two students who did not begin attendance in a semester were paid federal aid. Criteria: 34 CFR 668.32(a), 34 CFR 600.2 Questioned Costs: $9,500 Context: Out of 51 tested for eligibility, two students did not begin attendance in an eligible program. One student’s aid was returned prior to the end of the semester but beyond the allowable 30 days. The other student’s aid was returned shortly after fiscal year-end. Cause: The system check to verify attendance did not catch these students as not having begun the semester. Effect: Federal aid was paid to an ineligible student. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend the University compare a listing of students who have begun attendance to federal aid paid and return any federal aid paid to ineligible students. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-001
Incorrect Enrollment Reporting to National Student Loan Data System (NSLDS) Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.268 Federal Award Identification #: 2023-2024 Award Year Condition: The University did not report enrollment information to the National Student Loan Data System (NSLDS) in a timely and accurate manner. Criteria: 34 CFR 685.309 Questioned Costs: $0 Context: Out of 54 students tested, 45 students had incorrect enrollment statuses reported, of which seven were withdrawals. Additionally, out of 14 students tested, seven students had incorrect program reporting to NSLDS. Cause: The University’s process has been manual to update all NSLDS reporting by student. 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: Yes, 2023-001 and 2022-002 Recommendation: We recommend the University put a system in place to ensure that all students are being reported to NSLDS, and that the University is completing spot checks of enrollment statuses to NSLDS. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-002
Return of Title IV (R2T4) Calculations Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: There were four incorrect calculations of returned funds for students that withdrew during the term due to incorrect calendar setups and late notifications of students not attending, resulting in late returns. Criteria: 34 CFR 668.22 Questioned Costs: $245 Context: Out of 8 students, two students who withdrew during the audit period tested had funds returned late due to late notifications of non-attendance. Three students had incorrect calculations due to incorrect calendar set ups and needing to recalculate pell for classes the students began attendance in prior to performing the return calculation. This resulted in Pell owed back to the government of $78 and FDL owed back of $167 at fiscal year-end. Additionally, one student was not offered a post withdrawal disbursement of $292 of loans. Because the dollar amounts are small and the error rate is higher, this is classified as a significant deficiency. All students were corrected during the audit process. Cause: The calendar setups for fall 2023 were not set up properly. Additionally, notifications of nonattendance were not sent to financial aid timely to perform return calculations. Effect: Incorrect amount of unearned Title IV funds returned and lack of offering a post withdrawal disbursement. Identification as repeat finding, if applicable: Yes, 2023-002, 2022-001, 2021-003, 2020-006, 2019-005, and 2018-005. Recommendation: We recommend the University review the calendar set ups and ensure the proper number of days are used in the calculations. Additionally, we recommend the University implement a way to notify financial aid timely when students are not attending so a return calculation can be done timely. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-002
Return of Title IV (R2T4) Calculations Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: There were four incorrect calculations of returned funds for students that withdrew during the term due to incorrect calendar setups and late notifications of students not attending, resulting in late returns. Criteria: 34 CFR 668.22 Questioned Costs: $245 Context: Out of 8 students, two students who withdrew during the audit period tested had funds returned late due to late notifications of non-attendance. Three students had incorrect calculations due to incorrect calendar set ups and needing to recalculate pell for classes the students began attendance in prior to performing the return calculation. This resulted in Pell owed back to the government of $78 and FDL owed back of $167 at fiscal year-end. Additionally, one student was not offered a post withdrawal disbursement of $292 of loans. Because the dollar amounts are small and the error rate is higher, this is classified as a significant deficiency. All students were corrected during the audit process. Cause: The calendar setups for fall 2023 were not set up properly. Additionally, notifications of nonattendance were not sent to financial aid timely to perform return calculations. Effect: Incorrect amount of unearned Title IV funds returned and lack of offering a post withdrawal disbursement. Identification as repeat finding, if applicable: Yes, 2023-002, 2022-001, 2021-003, 2020-006, 2019-005, and 2018-005. Recommendation: We recommend the University review the calendar set ups and ensure the proper number of days are used in the calculations. Additionally, we recommend the University implement a way to notify financial aid timely when students are not attending so a return calculation can be done timely. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-003
Lack of Documentation of Exit Counseling Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268 Federal Award Identification #: 2023-2024 Award Year Condition: The University did not retain evidence or provide exit counseling to all students who left or did not send exit counseling instructions timely. Criteria: 34 CFR 685.304(b) Questioned Costs: $0 Context: Out of 37 students tested for exit counseling, six students did not have any documentation of exit counseling being sent. The University is in the process of sending these students exit counseling notifications. Cause: These students were marked in the system as active, so they were not picked up with the report to send exit counseling. Effect: Documentation of exit counseling was not available. Exit counseling packets assist in reducing the default rate. The default rate for the University was 5.5% in 2019, 20.5% in 2018, and 21.8% in 2017. Official rates for 2020 and 2021 are listed at 0% due to COVID waivers. Identification as repeat finding, if applicable: Yes, 2023-003. Recommendation: We recommend the University implement a process where all students leaving the University are notified of exit counseling requirements and documentation is retained. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-004
Disbursements to Ineligible Students DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: Two students who did not begin attendance in a semester were paid federal aid. Criteria: 34 CFR 668.32(a), 34 CFR 600.2 Questioned Costs: $9,500 Context: Out of 51 tested for eligibility, two students did not begin attendance in an eligible program. One student’s aid was returned prior to the end of the semester but beyond the allowable 30 days. The other student’s aid was returned shortly after fiscal year-end. Cause: The system check to verify attendance did not catch these students as not having begun the semester. Effect: Federal aid was paid to an ineligible student. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend the University compare a listing of students who have begun attendance to federal aid paid and return any federal aid paid to ineligible students. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-004
Disbursements to Ineligible Students DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: Two students who did not begin attendance in a semester were paid federal aid. Criteria: 34 CFR 668.32(a), 34 CFR 600.2 Questioned Costs: $9,500 Context: Out of 51 tested for eligibility, two students did not begin attendance in an eligible program. One student’s aid was returned prior to the end of the semester but beyond the allowable 30 days. The other student’s aid was returned shortly after fiscal year-end. Cause: The system check to verify attendance did not catch these students as not having begun the semester. Effect: Federal aid was paid to an ineligible student. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend the University compare a listing of students who have begun attendance to federal aid paid and return any federal aid paid to ineligible students. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.