Audit 338943

FY End
2024-05-31
Total Expended
$8.32M
Findings
12
Programs
5
Organization: North Central University (MN)
Year: 2024 Accepted: 2025-01-21

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
519780 2024-001 Significant Deficiency Yes N
519781 2024-001 Significant Deficiency Yes N
519782 2024-002 Significant Deficiency - C
519783 2024-002 Significant Deficiency - C
519784 2024-002 Significant Deficiency - C
519785 2024-002 Significant Deficiency - C
1096222 2024-001 Significant Deficiency Yes N
1096223 2024-001 Significant Deficiency Yes N
1096224 2024-002 Significant Deficiency - C
1096225 2024-002 Significant Deficiency - C
1096226 2024-002 Significant Deficiency - C
1096227 2024-002 Significant Deficiency - C

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $5.67M Yes 2
84.063 Federal Pell Grant Program $1.98M Yes 2
84.038 Federal Perkins Loan Program $472,593 Yes 0
84.033 Federal Work-Study Program $110,559 Yes 1
84.007 Federal Supplemental Educational Opportunity Grants $81,939 Yes 1

Contacts

Name Title Type
MVPJW6QVR4V3 Bruce Wheeler Auditee
6123434417 Gary Bishop Auditor
No contacts on file

Notes to SEFA

Title: Federal Loan Program Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of North Central University under programs of the federal government for the year ended May 31, 2024. The accompanying notes are an integral part of this Schedule. The information in this 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. Because the Schedule presents only a selected portion of the operations of North Central University, it is not intended to and does not present the financial position, changes in net assets or cash flows of North Central University. Expenditures reported on 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. De Minimis Rate Used: N Rate Explanation: North Central University has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The federal loan program listed subsequently is administered directly by North Central University, and balances and transactions relating to the program are included in North Central University’s basic financial statements. Loans outstanding at the beginning of the year and loans made during the year are included in the federal expenditures presented in the Schedule. The balance of loans outstanding at May 31, 2024, consists of CFDA 84.038 Federal Perkins Loan Program: $431,889.
Title: Subrecipients Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of North Central University under programs of the federal government for the year ended May 31, 2024. The accompanying notes are an integral part of this Schedule. The information in this 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. Because the Schedule presents only a selected portion of the operations of North Central University, it is not intended to and does not present the financial position, changes in net assets or cash flows of North Central University. Expenditures reported on 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. De Minimis Rate Used: N Rate Explanation: North Central University has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. There were no subrecipients during the year ended May 31, 2024.

Finding Details

Federal Program – Department of Education, Student Financial Assistance Cluster, Federal Pell Grant Program, Assistance Listing Number 84.063; Federal Direct Loan Program, Assistance Listing Number 84.268. Program Year –June 1, 2023 – May 31, 2024 Criteria or Specific Requirement – Special Tests and Provisions – Enrollment Reporting – The Code of Federal Regulations, 34 CFR 682.610, states that institutions must report accurately the enrollment status of all students regardless of if they receive aid from the institution or not. Changes to said status are required to be reported within 30 days of becoming aware of the status change, or with the next scheduled transmission of statuses if the scheduled transmission is within 60 days. This includes the enrollment effective date and related enrollment status, which must be reported for both the Campus-Level and the Program-Level. In addition, at a minimum, schools are required to certify enrollment every 60 days, and respond within 15 days of the date that the National Student Loan Data System (NSLDS) sends a Roster file to the school or its third-party servicer. In addition, regulations require that an institution make necessary corrections and return the records within 10 days for any roster files that do not pass the NSLDS enrollment reporting edits. Condition – The published program date reported to the NSLDS did not match institutional records. Questioned Costs – None Context – During our testing, we noted for 21 out of 21 students tested, the published program date reported to the NSLDS does not match the program length per the institution’s records. Our sample was not intended to be statistically valid. Effect – NSLDS did not contain current and accurate information with respect to published program length. Identification as a Repeat Finding – Yes, see 2023-001. Recommendation – We recommend that the University review its policies and procedures around reporting status changes and other enrollment information to NSLDS to ensure timely and accurate reporting. Views of Responsible Officials and Planned Corrective Action – There is no disagreement with the finding. The program length will be corrected for all students.
Federal Program – Department of Education, Student Financial Assistance Cluster, Federal Pell Grant Program, Assistance Listing Number 84.063; Federal Direct Loan Program, Assistance Listing Number 84.268. Program Year –June 1, 2023 – May 31, 2024 Criteria or Specific Requirement – Special Tests and Provisions – Enrollment Reporting – The Code of Federal Regulations, 34 CFR 682.610, states that institutions must report accurately the enrollment status of all students regardless of if they receive aid from the institution or not. Changes to said status are required to be reported within 30 days of becoming aware of the status change, or with the next scheduled transmission of statuses if the scheduled transmission is within 60 days. This includes the enrollment effective date and related enrollment status, which must be reported for both the Campus-Level and the Program-Level. In addition, at a minimum, schools are required to certify enrollment every 60 days, and respond within 15 days of the date that the National Student Loan Data System (NSLDS) sends a Roster file to the school or its third-party servicer. In addition, regulations require that an institution make necessary corrections and return the records within 10 days for any roster files that do not pass the NSLDS enrollment reporting edits. Condition – The published program date reported to the NSLDS did not match institutional records. Questioned Costs – None Context – During our testing, we noted for 21 out of 21 students tested, the published program date reported to the NSLDS does not match the program length per the institution’s records. Our sample was not intended to be statistically valid. Effect – NSLDS did not contain current and accurate information with respect to published program length. Identification as a Repeat Finding – Yes, see 2023-001. Recommendation – We recommend that the University review its policies and procedures around reporting status changes and other enrollment information to NSLDS to ensure timely and accurate reporting. Views of Responsible Officials and Planned Corrective Action – There is no disagreement with the finding. The program length will be corrected for all students.
Federal Program – Department of Education, Student Financial Assistance Cluster, Federal Supplemental Educational Opportunity Grants, Assistance Listing Number 84.007; Federal Work-Study Program, Assistance Listing Number 84.033; Federal Pell Grant Program, Assistance Listing Number 84.063; Federal Direct Loan Program, Assistance Listing Number 84.268. Program Year - June 1, 2023 - May 31, 2024 Criteria or Specific Requirement – Cash Management – Under the advance payment method, the University’s request must not exceed the amount immediately needed to disburse funds to students. A disbursement of funds occurs on the date the University credits a student’s account or pays a student or parent directly with either SFA funds or its own funds. Under the advance payment method, the University must make the disbursement as soon as administratively feasible, but no later than three business days following the receipt of funds. (34 CFR 668.162) Condition – An additional draw of approximately $112,574 was made in excess of the amount disbursed and not returned within three business days. Questioned Costs – CFDA 84.268 - $112,574 Context - The University was overdrawn at fiscal year end on direct loan funding. Cause - Proper reconciliations were not timely performed to identify the error prior to the draw and at year end. Effect - Federal funding pertaining to Direct Loans was overdrawn at year end. Identification as a Repeat Finding - No Recommendation - We recommend the University perform reconciliations timely and prior to drawing the related federal funding. Views of Responsible Officials and Planned Corrective Action - There is no disagreement with the audit finding. Corrections to the drawdown process will be made.
Federal Program – Department of Education, Student Financial Assistance Cluster, Federal Supplemental Educational Opportunity Grants, Assistance Listing Number 84.007; Federal Work-Study Program, Assistance Listing Number 84.033; Federal Pell Grant Program, Assistance Listing Number 84.063; Federal Direct Loan Program, Assistance Listing Number 84.268. Program Year - June 1, 2023 - May 31, 2024 Criteria or Specific Requirement – Cash Management – Under the advance payment method, the University’s request must not exceed the amount immediately needed to disburse funds to students. A disbursement of funds occurs on the date the University credits a student’s account or pays a student or parent directly with either SFA funds or its own funds. Under the advance payment method, the University must make the disbursement as soon as administratively feasible, but no later than three business days following the receipt of funds. (34 CFR 668.162) Condition – An additional draw of approximately $112,574 was made in excess of the amount disbursed and not returned within three business days. Questioned Costs – CFDA 84.268 - $112,574 Context - The University was overdrawn at fiscal year end on direct loan funding. Cause - Proper reconciliations were not timely performed to identify the error prior to the draw and at year end. Effect - Federal funding pertaining to Direct Loans was overdrawn at year end. Identification as a Repeat Finding - No Recommendation - We recommend the University perform reconciliations timely and prior to drawing the related federal funding. Views of Responsible Officials and Planned Corrective Action - There is no disagreement with the audit finding. Corrections to the drawdown process will be made.
Federal Program – Department of Education, Student Financial Assistance Cluster, Federal Supplemental Educational Opportunity Grants, Assistance Listing Number 84.007; Federal Work-Study Program, Assistance Listing Number 84.033; Federal Pell Grant Program, Assistance Listing Number 84.063; Federal Direct Loan Program, Assistance Listing Number 84.268. Program Year - June 1, 2023 - May 31, 2024 Criteria or Specific Requirement – Cash Management – Under the advance payment method, the University’s request must not exceed the amount immediately needed to disburse funds to students. A disbursement of funds occurs on the date the University credits a student’s account or pays a student or parent directly with either SFA funds or its own funds. Under the advance payment method, the University must make the disbursement as soon as administratively feasible, but no later than three business days following the receipt of funds. (34 CFR 668.162) Condition – An additional draw of approximately $112,574 was made in excess of the amount disbursed and not returned within three business days. Questioned Costs – CFDA 84.268 - $112,574 Context - The University was overdrawn at fiscal year end on direct loan funding. Cause - Proper reconciliations were not timely performed to identify the error prior to the draw and at year end. Effect - Federal funding pertaining to Direct Loans was overdrawn at year end. Identification as a Repeat Finding - No Recommendation - We recommend the University perform reconciliations timely and prior to drawing the related federal funding. Views of Responsible Officials and Planned Corrective Action - There is no disagreement with the audit finding. Corrections to the drawdown process will be made.
Federal Program – Department of Education, Student Financial Assistance Cluster, Federal Supplemental Educational Opportunity Grants, Assistance Listing Number 84.007; Federal Work-Study Program, Assistance Listing Number 84.033; Federal Pell Grant Program, Assistance Listing Number 84.063; Federal Direct Loan Program, Assistance Listing Number 84.268. Program Year - June 1, 2023 - May 31, 2024 Criteria or Specific Requirement – Cash Management – Under the advance payment method, the University’s request must not exceed the amount immediately needed to disburse funds to students. A disbursement of funds occurs on the date the University credits a student’s account or pays a student or parent directly with either SFA funds or its own funds. Under the advance payment method, the University must make the disbursement as soon as administratively feasible, but no later than three business days following the receipt of funds. (34 CFR 668.162) Condition – An additional draw of approximately $112,574 was made in excess of the amount disbursed and not returned within three business days. Questioned Costs – CFDA 84.268 - $112,574 Context - The University was overdrawn at fiscal year end on direct loan funding. Cause - Proper reconciliations were not timely performed to identify the error prior to the draw and at year end. Effect - Federal funding pertaining to Direct Loans was overdrawn at year end. Identification as a Repeat Finding - No Recommendation - We recommend the University perform reconciliations timely and prior to drawing the related federal funding. Views of Responsible Officials and Planned Corrective Action - There is no disagreement with the audit finding. Corrections to the drawdown process will be made.
Federal Program – Department of Education, Student Financial Assistance Cluster, Federal Pell Grant Program, Assistance Listing Number 84.063; Federal Direct Loan Program, Assistance Listing Number 84.268. Program Year –June 1, 2023 – May 31, 2024 Criteria or Specific Requirement – Special Tests and Provisions – Enrollment Reporting – The Code of Federal Regulations, 34 CFR 682.610, states that institutions must report accurately the enrollment status of all students regardless of if they receive aid from the institution or not. Changes to said status are required to be reported within 30 days of becoming aware of the status change, or with the next scheduled transmission of statuses if the scheduled transmission is within 60 days. This includes the enrollment effective date and related enrollment status, which must be reported for both the Campus-Level and the Program-Level. In addition, at a minimum, schools are required to certify enrollment every 60 days, and respond within 15 days of the date that the National Student Loan Data System (NSLDS) sends a Roster file to the school or its third-party servicer. In addition, regulations require that an institution make necessary corrections and return the records within 10 days for any roster files that do not pass the NSLDS enrollment reporting edits. Condition – The published program date reported to the NSLDS did not match institutional records. Questioned Costs – None Context – During our testing, we noted for 21 out of 21 students tested, the published program date reported to the NSLDS does not match the program length per the institution’s records. Our sample was not intended to be statistically valid. Effect – NSLDS did not contain current and accurate information with respect to published program length. Identification as a Repeat Finding – Yes, see 2023-001. Recommendation – We recommend that the University review its policies and procedures around reporting status changes and other enrollment information to NSLDS to ensure timely and accurate reporting. Views of Responsible Officials and Planned Corrective Action – There is no disagreement with the finding. The program length will be corrected for all students.
Federal Program – Department of Education, Student Financial Assistance Cluster, Federal Pell Grant Program, Assistance Listing Number 84.063; Federal Direct Loan Program, Assistance Listing Number 84.268. Program Year –June 1, 2023 – May 31, 2024 Criteria or Specific Requirement – Special Tests and Provisions – Enrollment Reporting – The Code of Federal Regulations, 34 CFR 682.610, states that institutions must report accurately the enrollment status of all students regardless of if they receive aid from the institution or not. Changes to said status are required to be reported within 30 days of becoming aware of the status change, or with the next scheduled transmission of statuses if the scheduled transmission is within 60 days. This includes the enrollment effective date and related enrollment status, which must be reported for both the Campus-Level and the Program-Level. In addition, at a minimum, schools are required to certify enrollment every 60 days, and respond within 15 days of the date that the National Student Loan Data System (NSLDS) sends a Roster file to the school or its third-party servicer. In addition, regulations require that an institution make necessary corrections and return the records within 10 days for any roster files that do not pass the NSLDS enrollment reporting edits. Condition – The published program date reported to the NSLDS did not match institutional records. Questioned Costs – None Context – During our testing, we noted for 21 out of 21 students tested, the published program date reported to the NSLDS does not match the program length per the institution’s records. Our sample was not intended to be statistically valid. Effect – NSLDS did not contain current and accurate information with respect to published program length. Identification as a Repeat Finding – Yes, see 2023-001. Recommendation – We recommend that the University review its policies and procedures around reporting status changes and other enrollment information to NSLDS to ensure timely and accurate reporting. Views of Responsible Officials and Planned Corrective Action – There is no disagreement with the finding. The program length will be corrected for all students.
Federal Program – Department of Education, Student Financial Assistance Cluster, Federal Supplemental Educational Opportunity Grants, Assistance Listing Number 84.007; Federal Work-Study Program, Assistance Listing Number 84.033; Federal Pell Grant Program, Assistance Listing Number 84.063; Federal Direct Loan Program, Assistance Listing Number 84.268. Program Year - June 1, 2023 - May 31, 2024 Criteria or Specific Requirement – Cash Management – Under the advance payment method, the University’s request must not exceed the amount immediately needed to disburse funds to students. A disbursement of funds occurs on the date the University credits a student’s account or pays a student or parent directly with either SFA funds or its own funds. Under the advance payment method, the University must make the disbursement as soon as administratively feasible, but no later than three business days following the receipt of funds. (34 CFR 668.162) Condition – An additional draw of approximately $112,574 was made in excess of the amount disbursed and not returned within three business days. Questioned Costs – CFDA 84.268 - $112,574 Context - The University was overdrawn at fiscal year end on direct loan funding. Cause - Proper reconciliations were not timely performed to identify the error prior to the draw and at year end. Effect - Federal funding pertaining to Direct Loans was overdrawn at year end. Identification as a Repeat Finding - No Recommendation - We recommend the University perform reconciliations timely and prior to drawing the related federal funding. Views of Responsible Officials and Planned Corrective Action - There is no disagreement with the audit finding. Corrections to the drawdown process will be made.
Federal Program – Department of Education, Student Financial Assistance Cluster, Federal Supplemental Educational Opportunity Grants, Assistance Listing Number 84.007; Federal Work-Study Program, Assistance Listing Number 84.033; Federal Pell Grant Program, Assistance Listing Number 84.063; Federal Direct Loan Program, Assistance Listing Number 84.268. Program Year - June 1, 2023 - May 31, 2024 Criteria or Specific Requirement – Cash Management – Under the advance payment method, the University’s request must not exceed the amount immediately needed to disburse funds to students. A disbursement of funds occurs on the date the University credits a student’s account or pays a student or parent directly with either SFA funds or its own funds. Under the advance payment method, the University must make the disbursement as soon as administratively feasible, but no later than three business days following the receipt of funds. (34 CFR 668.162) Condition – An additional draw of approximately $112,574 was made in excess of the amount disbursed and not returned within three business days. Questioned Costs – CFDA 84.268 - $112,574 Context - The University was overdrawn at fiscal year end on direct loan funding. Cause - Proper reconciliations were not timely performed to identify the error prior to the draw and at year end. Effect - Federal funding pertaining to Direct Loans was overdrawn at year end. Identification as a Repeat Finding - No Recommendation - We recommend the University perform reconciliations timely and prior to drawing the related federal funding. Views of Responsible Officials and Planned Corrective Action - There is no disagreement with the audit finding. Corrections to the drawdown process will be made.
Federal Program – Department of Education, Student Financial Assistance Cluster, Federal Supplemental Educational Opportunity Grants, Assistance Listing Number 84.007; Federal Work-Study Program, Assistance Listing Number 84.033; Federal Pell Grant Program, Assistance Listing Number 84.063; Federal Direct Loan Program, Assistance Listing Number 84.268. Program Year - June 1, 2023 - May 31, 2024 Criteria or Specific Requirement – Cash Management – Under the advance payment method, the University’s request must not exceed the amount immediately needed to disburse funds to students. A disbursement of funds occurs on the date the University credits a student’s account or pays a student or parent directly with either SFA funds or its own funds. Under the advance payment method, the University must make the disbursement as soon as administratively feasible, but no later than three business days following the receipt of funds. (34 CFR 668.162) Condition – An additional draw of approximately $112,574 was made in excess of the amount disbursed and not returned within three business days. Questioned Costs – CFDA 84.268 - $112,574 Context - The University was overdrawn at fiscal year end on direct loan funding. Cause - Proper reconciliations were not timely performed to identify the error prior to the draw and at year end. Effect - Federal funding pertaining to Direct Loans was overdrawn at year end. Identification as a Repeat Finding - No Recommendation - We recommend the University perform reconciliations timely and prior to drawing the related federal funding. Views of Responsible Officials and Planned Corrective Action - There is no disagreement with the audit finding. Corrections to the drawdown process will be made.
Federal Program – Department of Education, Student Financial Assistance Cluster, Federal Supplemental Educational Opportunity Grants, Assistance Listing Number 84.007; Federal Work-Study Program, Assistance Listing Number 84.033; Federal Pell Grant Program, Assistance Listing Number 84.063; Federal Direct Loan Program, Assistance Listing Number 84.268. Program Year - June 1, 2023 - May 31, 2024 Criteria or Specific Requirement – Cash Management – Under the advance payment method, the University’s request must not exceed the amount immediately needed to disburse funds to students. A disbursement of funds occurs on the date the University credits a student’s account or pays a student or parent directly with either SFA funds or its own funds. Under the advance payment method, the University must make the disbursement as soon as administratively feasible, but no later than three business days following the receipt of funds. (34 CFR 668.162) Condition – An additional draw of approximately $112,574 was made in excess of the amount disbursed and not returned within three business days. Questioned Costs – CFDA 84.268 - $112,574 Context - The University was overdrawn at fiscal year end on direct loan funding. Cause - Proper reconciliations were not timely performed to identify the error prior to the draw and at year end. Effect - Federal funding pertaining to Direct Loans was overdrawn at year end. Identification as a Repeat Finding - No Recommendation - We recommend the University perform reconciliations timely and prior to drawing the related federal funding. Views of Responsible Officials and Planned Corrective Action - There is no disagreement with the audit finding. Corrections to the drawdown process will be made.