FAC Explorer

Audit 332940

FY End
2024-06-30
Total Expended
$33.04M
Findings
4
Programs
6
Organization: Gardner-Webb University (NC)
Year: 2024 Accepted: 2024-12-17
Auditor: Cherry Bekaert LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
514589 2024-001 - - N
514590 2024-001 - - N
1091031 2024-001 - - N
1091032 2024-001 - - N

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $27.29M Yes 1
84.063 Federal Pell Grant Program $4.17M Yes 1
84.038 Federal Perkins $543,280 Yes 0
84.033 Federal Work-Study Program $367,198 Yes 0
84.007 Federal Supplemental Educational Opportunity Grants $217,378 Yes 0
84.425 Education Stabilization Fund $17,234 - 0

Contacts

Name Title Type
UBS3G4A9WBH1 Mike Whiteman Auditee
7044064282 Roselle Bonnoitt Auditor
No contacts on file

Notes to SEFA

Title: Note 3—Federal Perkins Loan Programs Accounting Policies: The accompanying schedule of expenditures of federal and state awards (the “schedule”) includes the federal and state grant activity of Gardner-Webb University (the “University”) and is presented on the accrual basis of accounting. 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”). Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in, the preparation of the basic financial statements. The University has not passed through any federal or state funding to any subrecipients. De Minimis Rate Used: N Rate Explanation: Indirect Cost Rate – The University has elected not to use the 10% de minimis indirect cost rate as allowed under Uniform Guidance. The Federal Perkins Loan Program is administered directly by the University. Balances and transactions relating to this program are included in the University’s financial statements. In accordance with the Federal Perkins Loans closing guidelines, no new loans are allowed and no new loans were disbursed by the University for the year ended June 30, 2024. The balance of loans outstanding under the Federal Perkins Loan Program was $4,904 net of allowance for doubtful accounts of $4,904 at June 30, 2024. The amount of the Federal Perkins Loan Program on the schedule is the balance of loans outstanding at June 30, 2023 of $543,280, which was reduced by payments of $69,631 and principal cancellations of $468,745 during the year ended June 30, 2024. Cash on hand at June 30, 2024 under the Perkins Loan Program was $84,279.
Title: Note 4—Federal Direct Student Loan Program Accounting Policies: The accompanying schedule of expenditures of federal and state awards (the “schedule”) includes the federal and state grant activity of Gardner-Webb University (the “University”) and is presented on the accrual basis of accounting. 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”). Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in, the preparation of the basic financial statements. The University has not passed through any federal or state funding to any subrecipients. De Minimis Rate Used: N Rate Explanation: Indirect Cost Rate – The University has elected not to use the 10% de minimis indirect cost rate as allowed under Uniform Guidance. During the fiscal year ended June 30, 2024, the University processed $27,293,032 of new loans under the Federal Direct Student Loans program (Assistance Listing #84.268). The University is responsible only for the performance of certain administrative duties with respect to the Federal Direct Student Loans program and, accordingly, these loans are not included on the University’s financial statements; furthermore, it is not practical to determine the balance of loans outstanding to students and former students of the University under these programs at June 30, 2024.

Finding Details

Finding 2024-001
Finding 2024-001 – Student Financial Aid Cluster, Assistance Listing # 84.063 and 84.268 Compliance Requirement: Special Test and Provisions – Enrollment Reporting Criteria: The University is required to send changes in attendance levels of students, including students who, graduated, withdrew, dropped out, or enrolled changes to the National Student Loan Data System (“NSLDS”) within 60 days of the change. Condition: The University did not send changes in attendance levels of students, including students who graduated, withdrew, dropped out, or enrolled changes to the NSLDS within 60 days of the change. Cause: The University had not reported status changes of students to the NSLDS as required under the Uniform Grant Guidance for the year ended June 30, 2024. The status information reported in the University’s system, was incorrectly extracted for the submission to the National Student Clearinghouse and NSLDS, which created discrepancies between the statuses. Context: The University had two incorrect status effective dates and sent 6 status changes to the NSLDS after 60 days. Effect: The University did not report status changes to the NSLDS timely. Recommendation: The University should put in place a process to timely capture student changes so they can be reported to the NSLDS. Management Response: The University concurs with this finding. Corrective Action Plan: See attached management’s corrective action plan.
Finding 2024-001
Finding 2024-001 – Student Financial Aid Cluster, Assistance Listing # 84.063 and 84.268 Compliance Requirement: Special Test and Provisions – Enrollment Reporting Criteria: The University is required to send changes in attendance levels of students, including students who, graduated, withdrew, dropped out, or enrolled changes to the National Student Loan Data System (“NSLDS”) within 60 days of the change. Condition: The University did not send changes in attendance levels of students, including students who graduated, withdrew, dropped out, or enrolled changes to the NSLDS within 60 days of the change. Cause: The University had not reported status changes of students to the NSLDS as required under the Uniform Grant Guidance for the year ended June 30, 2024. The status information reported in the University’s system, was incorrectly extracted for the submission to the National Student Clearinghouse and NSLDS, which created discrepancies between the statuses. Context: The University had two incorrect status effective dates and sent 6 status changes to the NSLDS after 60 days. Effect: The University did not report status changes to the NSLDS timely. Recommendation: The University should put in place a process to timely capture student changes so they can be reported to the NSLDS. Management Response: The University concurs with this finding. Corrective Action Plan: See attached management’s corrective action plan.
Finding 2024-001
Finding 2024-001 – Student Financial Aid Cluster, Assistance Listing # 84.063 and 84.268 Compliance Requirement: Special Test and Provisions – Enrollment Reporting Criteria: The University is required to send changes in attendance levels of students, including students who, graduated, withdrew, dropped out, or enrolled changes to the National Student Loan Data System (“NSLDS”) within 60 days of the change. Condition: The University did not send changes in attendance levels of students, including students who graduated, withdrew, dropped out, or enrolled changes to the NSLDS within 60 days of the change. Cause: The University had not reported status changes of students to the NSLDS as required under the Uniform Grant Guidance for the year ended June 30, 2024. The status information reported in the University’s system, was incorrectly extracted for the submission to the National Student Clearinghouse and NSLDS, which created discrepancies between the statuses. Context: The University had two incorrect status effective dates and sent 6 status changes to the NSLDS after 60 days. Effect: The University did not report status changes to the NSLDS timely. Recommendation: The University should put in place a process to timely capture student changes so they can be reported to the NSLDS. Management Response: The University concurs with this finding. Corrective Action Plan: See attached management’s corrective action plan.
Finding 2024-001
Finding 2024-001 – Student Financial Aid Cluster, Assistance Listing # 84.063 and 84.268 Compliance Requirement: Special Test and Provisions – Enrollment Reporting Criteria: The University is required to send changes in attendance levels of students, including students who, graduated, withdrew, dropped out, or enrolled changes to the National Student Loan Data System (“NSLDS”) within 60 days of the change. Condition: The University did not send changes in attendance levels of students, including students who graduated, withdrew, dropped out, or enrolled changes to the NSLDS within 60 days of the change. Cause: The University had not reported status changes of students to the NSLDS as required under the Uniform Grant Guidance for the year ended June 30, 2024. The status information reported in the University’s system, was incorrectly extracted for the submission to the National Student Clearinghouse and NSLDS, which created discrepancies between the statuses. Context: The University had two incorrect status effective dates and sent 6 status changes to the NSLDS after 60 days. Effect: The University did not report status changes to the NSLDS timely. Recommendation: The University should put in place a process to timely capture student changes so they can be reported to the NSLDS. Management Response: The University concurs with this finding. Corrective Action Plan: See attached management’s corrective action plan.