FAC Explorer

Audit 338814

FY End
2024-06-30
Total Expended
$21.56M
Findings
4
Programs
8
Organization: Southwestern College (KS)
Year: 2024 Accepted: 2025-01-19
Auditor: Capincrouse LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
519712 2024-003 Significant Deficiency - N
519713 2024-003 Significant Deficiency - N
1096154 2024-003 Significant Deficiency - N
1096155 2024-003 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
10.766 Community Facilities Loans and Grants $11.66M Yes 0
84.268 Federal Direct Student Loans $6.31M Yes 1
84.063 Federal Pell Grant Program $2.41M Yes 1
84.038 Federal Perkins Loan Program $941,871 Yes 0
84.007 Federal Supplemental Educational Opportunity Grants $120,186 Yes 0
84.033 Federal Work-Study Program $86,573 Yes 0
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $25,632 Yes 0
10.558 Child and Adult Care Food Program $8,067 - 0

Contacts

Name Title Type
SJKCR9F9GS15 Morea Simmons Auditee
6202296368 Chris Dukate, 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 Southwestern College (College) 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 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 College 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, AND LOAN GUARANTEES Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Southwestern College (College) 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 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 College 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 College did not provide any federal funds to subrecipients nor did they receive any federal non-cash assistance, insurance, 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 Southwestern College (College) 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 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 College 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: U.S. DEPARTMENT OF AGRICULTURE COMMUNITY FACILITIES LOANS Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Southwestern College (College) 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 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 College 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: HEIGHTENED CASH MONITORING Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Southwestern College (College) 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 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 College 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 College is operating under the Provisional Certification Alternative for failure to meet the Department of Education's standards of financial responsibility. The School must comply with all the requirements specified for the Provisional Certification Alternative including the Zone Alternative. As part of the audit procedures, the School's compliance with the Zone Alternative including their administration of the heightened cash monitoring payment method, disbursing aid and paying out credit balances before requesting reimbursement and notification requirements was tested. No non-compliance with the requirements was noted.
Title: INSTITUTIONAL 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 Southwestern College (College) 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 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 College 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 College 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 2024-003
Untimely Returns of Title IV Funds (R2T4) Significant Deficiency DEPARTMENT OF EDUCATION ALN #: ALN #: 84.268, 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: The College did not always return unearned Title IV aid timely. Criteria: 34 CFR 668.22 Questioned Costs: $0 Context: Out of 14 students tested for timely and accurate R2T4’s, 1 student had their unearned Title IV aid totaling $390 returned 23 days late. The College reviewed all student withdrawals and identified 5 other students with late returns totaling to the amount of $12,199 ranging from 5 to 62 days late. Cause: Even though the initial calculations were performed timely, the financial aid office’s internal review process and adjustment of the student account was late for 4 students. There was a lack of communication from the registrar's office for 1 student, but once the financial aid office discovered this student, the return was promptly calculated and made. 1 student had a calculation performed late due to an employee transition in the financial aid office. Effect: Noncompliance with R2T4 regulations regarding timely returns and withdrawals. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend that the College works to reduce the time between a student's initial R2T4 calculation and its internal review in the financial aid office. We also recommend the College continue to work with the registrar's office to provide timely notification of student withdrawals so that the return of Title IV funds can be complete within the timeframe required by the Department of Education. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-003
Untimely Returns of Title IV Funds (R2T4) Significant Deficiency DEPARTMENT OF EDUCATION ALN #: ALN #: 84.268, 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: The College did not always return unearned Title IV aid timely. Criteria: 34 CFR 668.22 Questioned Costs: $0 Context: Out of 14 students tested for timely and accurate R2T4’s, 1 student had their unearned Title IV aid totaling $390 returned 23 days late. The College reviewed all student withdrawals and identified 5 other students with late returns totaling to the amount of $12,199 ranging from 5 to 62 days late. Cause: Even though the initial calculations were performed timely, the financial aid office’s internal review process and adjustment of the student account was late for 4 students. There was a lack of communication from the registrar's office for 1 student, but once the financial aid office discovered this student, the return was promptly calculated and made. 1 student had a calculation performed late due to an employee transition in the financial aid office. Effect: Noncompliance with R2T4 regulations regarding timely returns and withdrawals. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend that the College works to reduce the time between a student's initial R2T4 calculation and its internal review in the financial aid office. We also recommend the College continue to work with the registrar's office to provide timely notification of student withdrawals so that the return of Title IV funds can be complete within the timeframe required by the Department of Education. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-003
Untimely Returns of Title IV Funds (R2T4) Significant Deficiency DEPARTMENT OF EDUCATION ALN #: ALN #: 84.268, 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: The College did not always return unearned Title IV aid timely. Criteria: 34 CFR 668.22 Questioned Costs: $0 Context: Out of 14 students tested for timely and accurate R2T4’s, 1 student had their unearned Title IV aid totaling $390 returned 23 days late. The College reviewed all student withdrawals and identified 5 other students with late returns totaling to the amount of $12,199 ranging from 5 to 62 days late. Cause: Even though the initial calculations were performed timely, the financial aid office’s internal review process and adjustment of the student account was late for 4 students. There was a lack of communication from the registrar's office for 1 student, but once the financial aid office discovered this student, the return was promptly calculated and made. 1 student had a calculation performed late due to an employee transition in the financial aid office. Effect: Noncompliance with R2T4 regulations regarding timely returns and withdrawals. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend that the College works to reduce the time between a student's initial R2T4 calculation and its internal review in the financial aid office. We also recommend the College continue to work with the registrar's office to provide timely notification of student withdrawals so that the return of Title IV funds can be complete within the timeframe required by the Department of Education. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-003
Untimely Returns of Title IV Funds (R2T4) Significant Deficiency DEPARTMENT OF EDUCATION ALN #: ALN #: 84.268, 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: The College did not always return unearned Title IV aid timely. Criteria: 34 CFR 668.22 Questioned Costs: $0 Context: Out of 14 students tested for timely and accurate R2T4’s, 1 student had their unearned Title IV aid totaling $390 returned 23 days late. The College reviewed all student withdrawals and identified 5 other students with late returns totaling to the amount of $12,199 ranging from 5 to 62 days late. Cause: Even though the initial calculations were performed timely, the financial aid office’s internal review process and adjustment of the student account was late for 4 students. There was a lack of communication from the registrar's office for 1 student, but once the financial aid office discovered this student, the return was promptly calculated and made. 1 student had a calculation performed late due to an employee transition in the financial aid office. Effect: Noncompliance with R2T4 regulations regarding timely returns and withdrawals. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend that the College works to reduce the time between a student's initial R2T4 calculation and its internal review in the financial aid office. We also recommend the College continue to work with the registrar's office to provide timely notification of student withdrawals so that the return of Title IV funds can be complete within the timeframe required by the Department of Education. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.