FAC Explorer

Audit 337234

FY End
2024-06-30
Total Expended
$9.88M
Findings
12
Programs
5
Organization: William Jessup University (CA)
Year: 2024 Accepted: 2025-01-10
Auditor: Capincrouse LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
518849 2024-001 Material Weakness Yes N
518850 2024-001 Material Weakness Yes N
518851 2024-002 Significant Deficiency - N
518852 2024-002 Significant Deficiency - N
518853 2024-003 - - L
518854 2024-004 - Yes E
1095291 2024-001 Material Weakness Yes N
1095292 2024-001 Material Weakness Yes N
1095293 2024-002 Significant Deficiency - N
1095294 2024-002 Significant Deficiency - N
1095295 2024-003 - - L
1095296 2024-004 - Yes E

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $7.59M Yes 2
84.063 Federal Pell Grant Program $1.91M Yes 4
20.111 Aircraft Pilots Workforce Development Grant Program $224,403 - 0
84.007 Federal Supplemental Educational Opportunity Grants $76,572 Yes 0
84.033 Federal Work-Study Program $72,876 Yes 0

Contacts

Name Title Type
FBXYMNPM5KS6 Deborah Rezene Auditee
9165772200 Christopher Gordon, 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 William Jessup University and Jessup Foundation (University) under programs of the federal government for the year ended June 30, 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 William Jessup University and Jessup Foundation (University) under programs of the federal government for the year ended June 30, 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 William Jessup University and Jessup Foundation (University) under programs of the federal government for the year ended June 30, 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
Untimely and Inaccurate Returns of Title IV Funds (R2T4) and National Student Loan Data System Updates (NSLDS) Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: When students withdrew either officially or unofficially, the University did not always return unearned Title IV aid timely or accurately and did not update NSLDS correctly. Criteria: 34 CFR 668.22, 34 CFR 685.309(b) Questioned Costs: $3,523 Context: Out of 23 students, 3 students had inaccurate returns, resulting in underawards of Pell of $3,146 and overawards of loans of $3,523. Out of the same 23 students, 4 students who withdrew during the audit period tested had a total of approximately $11,759 funds returned late ranging from 7 to 73 days. Additionally 2 students have funds that still need to be returned. Additionally, two students who withdrew were not updated correctly in NSLDS. Cause: There were staffing challenges during the year as well as delays in processing R2T4’s corrections even though the calculations were completed timely. While the calculations were completed correctly, the actual amounts returned included the funds that both the school and student were responsible for returning to the Department of Education. The date of determination was used for the enrollment reporting updates instead of the date of withdrawal. Effect: Returns of Title IV funds were not performed timely or accurately. Identification as repeat finding, if applicable: Yes, 2023-002 and 2022-001 Recommendation: We recommend that additional training be completed on R2T4 processing and related updates to NSLDS for withdrawals. We also recommend that financial aid office work with the registrar to put procedures in place for timely notification when students stop attending and that financial aid process the R2T4’s timely when required. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-001
Untimely and Inaccurate Returns of Title IV Funds (R2T4) and National Student Loan Data System Updates (NSLDS) Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: When students withdrew either officially or unofficially, the University did not always return unearned Title IV aid timely or accurately and did not update NSLDS correctly. Criteria: 34 CFR 668.22, 34 CFR 685.309(b) Questioned Costs: $3,523 Context: Out of 23 students, 3 students had inaccurate returns, resulting in underawards of Pell of $3,146 and overawards of loans of $3,523. Out of the same 23 students, 4 students who withdrew during the audit period tested had a total of approximately $11,759 funds returned late ranging from 7 to 73 days. Additionally 2 students have funds that still need to be returned. Additionally, two students who withdrew were not updated correctly in NSLDS. Cause: There were staffing challenges during the year as well as delays in processing R2T4’s corrections even though the calculations were completed timely. While the calculations were completed correctly, the actual amounts returned included the funds that both the school and student were responsible for returning to the Department of Education. The date of determination was used for the enrollment reporting updates instead of the date of withdrawal. Effect: Returns of Title IV funds were not performed timely or accurately. Identification as repeat finding, if applicable: Yes, 2023-002 and 2022-001 Recommendation: We recommend that additional training be completed on R2T4 processing and related updates to NSLDS for withdrawals. We also recommend that financial aid office work with the registrar to put procedures in place for timely notification when students stop attending and that financial aid process the R2T4’s timely when required. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-002
Verification Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: As required under 34 CFR 668.56, for students who are flagged for verification, the University is required to obtain underlying tax and other information to verify that amounts are properly reported on the ISIR and correct the ISIR if there are discrepancies. The University did not complete verification accurately for three students. Criteria: 34 CFR 668.56 Questioned Costs: $4,300 Context: Out of 9 tested for verification, 3 students had an incorrect number in household and number in family reported that caused a change in expected family contribution. Two of those students resulted in a total of $4,300 over awarded in the student’s Pell grants. One additional student was not recalculated as the federal system for updates was closed. Cause: The verification corrections did not process fully within Regent. There was not proper review of student’s files to ensure the correct information was updated on the ISIR used for packaging the student’s financial aid. Effect: Need based aid and specifically Pell grants are impacted directly by the results of verification Identification as repeat finding, if applicable: Not applicable Recommendation: We recommend the University periodically review verification completed for students with need-based aid for accuracy and ensure any corrections are properly reflected in the student information system. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-002
Verification Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: As required under 34 CFR 668.56, for students who are flagged for verification, the University is required to obtain underlying tax and other information to verify that amounts are properly reported on the ISIR and correct the ISIR if there are discrepancies. The University did not complete verification accurately for three students. Criteria: 34 CFR 668.56 Questioned Costs: $4,300 Context: Out of 9 tested for verification, 3 students had an incorrect number in household and number in family reported that caused a change in expected family contribution. Two of those students resulted in a total of $4,300 over awarded in the student’s Pell grants. One additional student was not recalculated as the federal system for updates was closed. Cause: The verification corrections did not process fully within Regent. There was not proper review of student’s files to ensure the correct information was updated on the ISIR used for packaging the student’s financial aid. Effect: Need based aid and specifically Pell grants are impacted directly by the results of verification Identification as repeat finding, if applicable: Not applicable Recommendation: We recommend the University periodically review verification completed for students with need-based aid for accuracy and ensure any corrections are properly reflected in the student information system. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-003
FISAP Reporting DEPARTMENT OF EDUCATION ALN #: 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: The University did not accurately report certain items relating to Pell Grant Reporting on the FISAP report. Criteria: 34 CFR 668.24(e) Questioned Costs: $0 Context: The University did not properly report Pell Grant information on the most recent FISAP. Cause: This was an oversight by management. When initial Pell figures were reported on the FISAP, subsequent adjustments were made based on year-end reconciliations and the University did not reflect the corrections in the FISAP report. Effect: The FISAP Pell grant expenditures was understated by approximately 12%. Identification as repeat finding, if applicable: Not applicable Recommendation: We recommend the University have an independent individual review the FISAP prior to submission for accuracy. We also recommend the University work with the Department of Education to correct errors in the Pell reporting portion of the FISAP. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-004
Pell Awards DEPARTMENT OF EDUCATION ALN #: 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: 1 student out of 60 was not properly awarded Pell based on the classes they began attendance in. Criteria: 34 CFR 690.63(b) Questioned Costs: $0 Context: One student inadvertently had Pell recalculated automatically after the beginning of the second session within the term, and because the student had withdrawn from two classes, the Pell was adjusted as if attendance had never begun resulting in an under award of $536. Cause: This was an oversight in the system configuration. Effect: Pell was under awarded for classes where the student began attendance and subsequently withdrew. Identification as repeat finding, if applicable: Yes 2023-004 Recommendation: We recommend the system configuration allow a check box that indicates the student began attendance in a Pell eligible class. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-001
Untimely and Inaccurate Returns of Title IV Funds (R2T4) and National Student Loan Data System Updates (NSLDS) Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: When students withdrew either officially or unofficially, the University did not always return unearned Title IV aid timely or accurately and did not update NSLDS correctly. Criteria: 34 CFR 668.22, 34 CFR 685.309(b) Questioned Costs: $3,523 Context: Out of 23 students, 3 students had inaccurate returns, resulting in underawards of Pell of $3,146 and overawards of loans of $3,523. Out of the same 23 students, 4 students who withdrew during the audit period tested had a total of approximately $11,759 funds returned late ranging from 7 to 73 days. Additionally 2 students have funds that still need to be returned. Additionally, two students who withdrew were not updated correctly in NSLDS. Cause: There were staffing challenges during the year as well as delays in processing R2T4’s corrections even though the calculations were completed timely. While the calculations were completed correctly, the actual amounts returned included the funds that both the school and student were responsible for returning to the Department of Education. The date of determination was used for the enrollment reporting updates instead of the date of withdrawal. Effect: Returns of Title IV funds were not performed timely or accurately. Identification as repeat finding, if applicable: Yes, 2023-002 and 2022-001 Recommendation: We recommend that additional training be completed on R2T4 processing and related updates to NSLDS for withdrawals. We also recommend that financial aid office work with the registrar to put procedures in place for timely notification when students stop attending and that financial aid process the R2T4’s timely when required. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-001
Untimely and Inaccurate Returns of Title IV Funds (R2T4) and National Student Loan Data System Updates (NSLDS) Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: When students withdrew either officially or unofficially, the University did not always return unearned Title IV aid timely or accurately and did not update NSLDS correctly. Criteria: 34 CFR 668.22, 34 CFR 685.309(b) Questioned Costs: $3,523 Context: Out of 23 students, 3 students had inaccurate returns, resulting in underawards of Pell of $3,146 and overawards of loans of $3,523. Out of the same 23 students, 4 students who withdrew during the audit period tested had a total of approximately $11,759 funds returned late ranging from 7 to 73 days. Additionally 2 students have funds that still need to be returned. Additionally, two students who withdrew were not updated correctly in NSLDS. Cause: There were staffing challenges during the year as well as delays in processing R2T4’s corrections even though the calculations were completed timely. While the calculations were completed correctly, the actual amounts returned included the funds that both the school and student were responsible for returning to the Department of Education. The date of determination was used for the enrollment reporting updates instead of the date of withdrawal. Effect: Returns of Title IV funds were not performed timely or accurately. Identification as repeat finding, if applicable: Yes, 2023-002 and 2022-001 Recommendation: We recommend that additional training be completed on R2T4 processing and related updates to NSLDS for withdrawals. We also recommend that financial aid office work with the registrar to put procedures in place for timely notification when students stop attending and that financial aid process the R2T4’s timely when required. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-002
Verification Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: As required under 34 CFR 668.56, for students who are flagged for verification, the University is required to obtain underlying tax and other information to verify that amounts are properly reported on the ISIR and correct the ISIR if there are discrepancies. The University did not complete verification accurately for three students. Criteria: 34 CFR 668.56 Questioned Costs: $4,300 Context: Out of 9 tested for verification, 3 students had an incorrect number in household and number in family reported that caused a change in expected family contribution. Two of those students resulted in a total of $4,300 over awarded in the student’s Pell grants. One additional student was not recalculated as the federal system for updates was closed. Cause: The verification corrections did not process fully within Regent. There was not proper review of student’s files to ensure the correct information was updated on the ISIR used for packaging the student’s financial aid. Effect: Need based aid and specifically Pell grants are impacted directly by the results of verification Identification as repeat finding, if applicable: Not applicable Recommendation: We recommend the University periodically review verification completed for students with need-based aid for accuracy and ensure any corrections are properly reflected in the student information system. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-002
Verification Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268, 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: As required under 34 CFR 668.56, for students who are flagged for verification, the University is required to obtain underlying tax and other information to verify that amounts are properly reported on the ISIR and correct the ISIR if there are discrepancies. The University did not complete verification accurately for three students. Criteria: 34 CFR 668.56 Questioned Costs: $4,300 Context: Out of 9 tested for verification, 3 students had an incorrect number in household and number in family reported that caused a change in expected family contribution. Two of those students resulted in a total of $4,300 over awarded in the student’s Pell grants. One additional student was not recalculated as the federal system for updates was closed. Cause: The verification corrections did not process fully within Regent. There was not proper review of student’s files to ensure the correct information was updated on the ISIR used for packaging the student’s financial aid. Effect: Need based aid and specifically Pell grants are impacted directly by the results of verification Identification as repeat finding, if applicable: Not applicable Recommendation: We recommend the University periodically review verification completed for students with need-based aid for accuracy and ensure any corrections are properly reflected in the student information system. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-003
FISAP Reporting DEPARTMENT OF EDUCATION ALN #: 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: The University did not accurately report certain items relating to Pell Grant Reporting on the FISAP report. Criteria: 34 CFR 668.24(e) Questioned Costs: $0 Context: The University did not properly report Pell Grant information on the most recent FISAP. Cause: This was an oversight by management. When initial Pell figures were reported on the FISAP, subsequent adjustments were made based on year-end reconciliations and the University did not reflect the corrections in the FISAP report. Effect: The FISAP Pell grant expenditures was understated by approximately 12%. Identification as repeat finding, if applicable: Not applicable Recommendation: We recommend the University have an independent individual review the FISAP prior to submission for accuracy. We also recommend the University work with the Department of Education to correct errors in the Pell reporting portion of the FISAP. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-004
Pell Awards DEPARTMENT OF EDUCATION ALN #: 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: 1 student out of 60 was not properly awarded Pell based on the classes they began attendance in. Criteria: 34 CFR 690.63(b) Questioned Costs: $0 Context: One student inadvertently had Pell recalculated automatically after the beginning of the second session within the term, and because the student had withdrawn from two classes, the Pell was adjusted as if attendance had never begun resulting in an under award of $536. Cause: This was an oversight in the system configuration. Effect: Pell was under awarded for classes where the student began attendance and subsequently withdrew. Identification as repeat finding, if applicable: Yes 2023-004 Recommendation: We recommend the system configuration allow a check box that indicates the student began attendance in a Pell eligible class. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.