FAC Explorer

Audit 3361

FY End
2023-06-30
Total Expended
$43.85M
Findings
4
Programs
9
Organization: Point Loma Nazarene University and Subsidiary (CA)
Year: 2023 Accepted: 2023-11-15
Auditor: Capincrouse LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1939 2023-001 Significant Deficiency Yes N
1940 2023-001 Significant Deficiency Yes N
578381 2023-001 Significant Deficiency Yes N
578382 2023-001 Significant Deficiency Yes N

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $36.87M Yes 1
84.063 Federal Pell Grant Program $3.70M Yes 1
84.038 Federal Perkins Loan Program $1.45M Yes 0
84.033 Federal Work-Study Program $579,056 Yes 0
93.264 Nurse Faculty Loan Program (nflp) $407,220 Yes 0
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $348,651 Yes 0
84.007 Federal Supplemental Educational Opportunity Grants $299,416 Yes 0
93.364 Nursing Student Loans $190,163 Yes 0
84.408 Postsecondary Education Scholarships for Veteran's Dependents $6,501 Yes 0

Contacts

Name Title Type
H534D2GJMQD3 Daniel Reed Auditee
6198492200 Nathan Salsbery, CPA Auditor
No contacts on file

Notes to SEFA

Title: RELATIONSHIP TO FINANCIAL STATEMENTS Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Point Loma Nazarene University and Affiliate (the University) under programs of the federal government for the year ending June 30, 2023. 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 Point Loma Nazarene University and Affiliate (the University) under programs of the federal government for the year ending June 30, 2023. 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: FEDERAL PERKINS LOAN PROGRAM Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Point Loma Nazarene University and Affiliate (the University) under programs of the federal government for the year ending June 30, 2023. 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: NURSING FACULTY LOAN PROGRAM Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Point Loma Nazarene University and Affiliate (the University) under programs of the federal government for the year ending June 30, 2023. 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: NURSING STUDENT LOANS Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Point Loma Nazarene University and Affiliate (the University) under programs of the federal government for the year ending June 30, 2023. 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

Finding Details

Finding 2023-001
Untimely Return of Title IV (R2T4) Funds Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2022-2023 Financial Aid Year Condition: When students withdrew either officially or unofficially, the University did not always return unearned Title IV aid timely within the 45 days from the determination of the student’s withdrawal. Criteria: 34 CFR 668.22 Questioned Costs: $0 Context: Out of 9 withdrawals tested (both official and unofficial), 2 students who withdrew in Fall 22 had funds totaling $9,484 returned in September 2023, 189 days late. 1 other student had a corrected R2T4 calculation completed in Fall 22 based on an updated last date of attendance resulting in $1,776 funds owed to the student but it wasn’t disbursed until September 2023. Cause: Lack of review over individual R2T4 calculations, particularly unofficial withdrawals Effect: Returns of Title IV funds were not performed timely. Identification as repeat finding, if applicable: Yes, 2022-001 Recommendation: We recommend that the University run a listing of withdrawals after each semester and compare the list of students who had R2T4’s completed to ensure completeness. We further recommend a 0-credit report be run at the end of each semester to ensure all unofficial withdrawals are followed up on so that R2T4’s are completed timely when required. We also recommend an individual in financial aid with the appropriate level of experience periodically review R2T4 calculations and returns to help ensure that internal controls over such process can operate effectively and achieve compliance. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2023-001
Untimely Return of Title IV (R2T4) Funds Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2022-2023 Financial Aid Year Condition: When students withdrew either officially or unofficially, the University did not always return unearned Title IV aid timely within the 45 days from the determination of the student’s withdrawal. Criteria: 34 CFR 668.22 Questioned Costs: $0 Context: Out of 9 withdrawals tested (both official and unofficial), 2 students who withdrew in Fall 22 had funds totaling $9,484 returned in September 2023, 189 days late. 1 other student had a corrected R2T4 calculation completed in Fall 22 based on an updated last date of attendance resulting in $1,776 funds owed to the student but it wasn’t disbursed until September 2023. Cause: Lack of review over individual R2T4 calculations, particularly unofficial withdrawals Effect: Returns of Title IV funds were not performed timely. Identification as repeat finding, if applicable: Yes, 2022-001 Recommendation: We recommend that the University run a listing of withdrawals after each semester and compare the list of students who had R2T4’s completed to ensure completeness. We further recommend a 0-credit report be run at the end of each semester to ensure all unofficial withdrawals are followed up on so that R2T4’s are completed timely when required. We also recommend an individual in financial aid with the appropriate level of experience periodically review R2T4 calculations and returns to help ensure that internal controls over such process can operate effectively and achieve compliance. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2023-001
Untimely Return of Title IV (R2T4) Funds Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2022-2023 Financial Aid Year Condition: When students withdrew either officially or unofficially, the University did not always return unearned Title IV aid timely within the 45 days from the determination of the student’s withdrawal. Criteria: 34 CFR 668.22 Questioned Costs: $0 Context: Out of 9 withdrawals tested (both official and unofficial), 2 students who withdrew in Fall 22 had funds totaling $9,484 returned in September 2023, 189 days late. 1 other student had a corrected R2T4 calculation completed in Fall 22 based on an updated last date of attendance resulting in $1,776 funds owed to the student but it wasn’t disbursed until September 2023. Cause: Lack of review over individual R2T4 calculations, particularly unofficial withdrawals Effect: Returns of Title IV funds were not performed timely. Identification as repeat finding, if applicable: Yes, 2022-001 Recommendation: We recommend that the University run a listing of withdrawals after each semester and compare the list of students who had R2T4’s completed to ensure completeness. We further recommend a 0-credit report be run at the end of each semester to ensure all unofficial withdrawals are followed up on so that R2T4’s are completed timely when required. We also recommend an individual in financial aid with the appropriate level of experience periodically review R2T4 calculations and returns to help ensure that internal controls over such process can operate effectively and achieve compliance. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2023-001
Untimely Return of Title IV (R2T4) Funds Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2022-2023 Financial Aid Year Condition: When students withdrew either officially or unofficially, the University did not always return unearned Title IV aid timely within the 45 days from the determination of the student’s withdrawal. Criteria: 34 CFR 668.22 Questioned Costs: $0 Context: Out of 9 withdrawals tested (both official and unofficial), 2 students who withdrew in Fall 22 had funds totaling $9,484 returned in September 2023, 189 days late. 1 other student had a corrected R2T4 calculation completed in Fall 22 based on an updated last date of attendance resulting in $1,776 funds owed to the student but it wasn’t disbursed until September 2023. Cause: Lack of review over individual R2T4 calculations, particularly unofficial withdrawals Effect: Returns of Title IV funds were not performed timely. Identification as repeat finding, if applicable: Yes, 2022-001 Recommendation: We recommend that the University run a listing of withdrawals after each semester and compare the list of students who had R2T4’s completed to ensure completeness. We further recommend a 0-credit report be run at the end of each semester to ensure all unofficial withdrawals are followed up on so that R2T4’s are completed timely when required. We also recommend an individual in financial aid with the appropriate level of experience periodically review R2T4 calculations and returns to help ensure that internal controls over such process can operate effectively and achieve compliance. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.