FAC Explorer

Audit 341250

FY End
2024-06-30
Total Expended
$2.67M
Findings
4
Programs
4
Organization: Baptist Bible College (MO)
Year: 2024 Accepted: 2025-02-04
Auditor: Keller & Owens LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
522004 2024-001 - - E
522005 2024-002 - - EN
1098446 2024-001 - - E
1098447 2024-002 - - EN

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $1.65M Yes 1
84.063 Federal Pell Grant Program $956,966 Yes 1
84.033 Federal Work-Study Program $35,361 Yes 0
84.007 Federal Supplemental Educational Opportunity Grants $27,180 Yes 0

Contacts

Name Title Type
S1QHNJVQVXP4 Jason Todd Auditee
4172686005 Richard A. Bili Auditor
No contacts on file

Notes to SEFA

Title: FEDERAL DIRECT STUDENT LOAN PROGRAM Accounting Policies: The schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Baptist Bible College (the “College”), under programs of the federal government for the year ended June 30, 2024. 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 the College, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the College. The College includes loans granted under the Federal Direct Student Loans Program as expenditures of federal awards. Federal Direct Student Loan Program balances are not included in the financial statements of the College. 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 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 grant agreements, no such matching has been included as expenditures in the Schedule. De Minimis Rate Used: N Rate Explanation: Baptist Bible College has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. During the fiscal year ended June 30, 2024, the College processed the following amount of new loans under the Federal Direct Student Loan Program (which includes Subsidized Loans, Unsubsidized Direct Student Loans, and Parents’ Loans for Undergraduate Students): Federal Direct Student Loan Program Assistance Listing Number 84.268; Amount Authorized $1,647.759
Title: FEDERAL PELL GRANT Accounting Policies: The schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Baptist Bible College (the “College”), under programs of the federal government for the year ended June 30, 2024. 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 the College, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the College. The College includes loans granted under the Federal Direct Student Loans Program as expenditures of federal awards. Federal Direct Student Loan Program balances are not included in the financial statements of the College. 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 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 grant agreements, no such matching has been included as expenditures in the Schedule. De Minimis Rate Used: N Rate Explanation: Baptist Bible College has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Included in the Federal Pell Grant expenditures is an administrative cost allowance of $960.
Title: FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANT Accounting Policies: The schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Baptist Bible College (the “College”), under programs of the federal government for the year ended June 30, 2024. 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 the College, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the College. The College includes loans granted under the Federal Direct Student Loans Program as expenditures of federal awards. Federal Direct Student Loan Program balances are not included in the financial statements of the College. 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 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 grant agreements, no such matching has been included as expenditures in the Schedule. De Minimis Rate Used: N Rate Explanation: Baptist Bible College has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The following is included as FSEOG expenditure: Federal Share of Grants $27,180. Institutioanl share of grants $-0-. Total FSEOG expenditures $27,180. The College received a waiver from the Department of Education for the institutional mataching requirement for the year ended June 30, 2024.
Title: FEDERAL WORK STUDY Accounting Policies: The schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Baptist Bible College (the “College”), under programs of the federal government for the year ended June 30, 2024. 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 the College, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the College. The College includes loans granted under the Federal Direct Student Loans Program as expenditures of federal awards. Federal Direct Student Loan Program balances are not included in the financial statements of the College. 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 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 grant agreements, no such matching has been included as expenditures in the Schedule. De Minimis Rate Used: N Rate Explanation: Baptist Bible College has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The following is included as Federal Work Study expenditures. Federal Share of Federal Work Study Wages $35,361. Institutional share of Federal Work Study Wages $18,068. Total FWS Expenditures $53,429.

Finding Details

Finding 2024-001
Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Direct Student Loan Program ALN and Program Expenditures: 84.268 ($1,647,759) Award Number: P268K243629 Federal Award Year: July 1, 2023 to June 30, 2024 Questioned Costs: $1,000 Condition Found: The amount of unsubsidized Federal Direct Loans awarded was incorrect for one of thirty-two students in our sample that received Federal Direct Loans. Criteria: The annual Federal Direct Loan Limit is $5,500 for freshman, $6,500 for sophomores, and $7,500 for juniors and seniors. Cause: While the student was enrolled in fifteen credit hours in fall 2023 semester, the student only passed three credit hours for the semester. Therefore, the student did not have enough credit hours to qualify for Federal Direct Loans at the junior/senior level. Aid was awarded based on the assumption the student would pass all of classes in the fall 2023 semester and then qualify for an additional $1,000 of Federal Direct Loan funds. Cumulative credit hours completed were not verified before disbursing spring 2024 aid. Possible Asserted Effect: The student was awarded an unsubsidized federal direct loan at the junior level when for financial aid purposes the student was at sophomore level. Therefore, the student was only eligible to receive $6,500 in Federal Direct Loans instead of the $7,500 received. $1,000 should be returned to the Department of Education. Repeat Finding: There was not a similar finding in the prior year. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation:$1,000 of unsubsidized loan funds should be returned to the Department of Education. Credit hours completed should be reviewed before aid is disbursed. Management Response: Management agrees with the auditors’ finding and their recommendation. The Financial Aid Director returned $1,000 of unsubsidized Federal Direct Loan funds to the Department of Education on October 24, 2024. The financial aid office and registrar’s office will work together to ensure that both parties are aware of the student’s credit hours passed and their eligibility for federal aid.
Finding 2024-002
Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Pell Grant ALN and Program Expenditures: 84.063 ($956,966) Award Number: P063P233629 Federal Award Year: July 1, 2023 to June 30, 2024 Questioned Costs: $660 Condition Found: The R2T4 calculation was completed incorrectly for two of the fourteen R2T4s reviewed during our audit. All of the R2T4s completed by College during the year ended June 30, 2024 were reviewed during the audit. For one student, the number of days in the semester used in the calculation was incorrect. For the second student, the amount of Pell awarded and used in the calculation was incorrect. Criteria: For the first student, the total number of days in the semester for the purposes of the R2T4 calculation is the sum of the start and end dates noted in the academic calendar less any scheduled breaks of five days or more. For the second student, the amount awarded in Pell Grant funds is based on the student’s expected family contribution (“EFC”), the number of credit hours the student is enrolled in, and the student’s cost of attendance. In addition, if a student is enrolled in module courses, the Pell grant funds awarded must be adjusted for modules that the student did not begin. Cause: For the first student, the Director of Financial Aid miscalculated the number of days in the semester. The incorrect date was used for the last date of the semester. This was a typing error when entering the data to calculate the R2T4. There were two Pell errors for the second student. The incorrect amount of Pell was awarded based on the student’s EFC, enrollment status, and cost of attendance. In addition, Pell Grant funds awarded were not adjusted for one module that the student did not begin attendance. Possible Asserted Effect: The R2T4 calculations were completed incorrectly. For the first student, an additional $558 of Federal Pell Grant funds should be returned to the Department of Education. The second student was eligible to receive an additional $102 of Federal Pell Grant funds. Repeat Finding: There was not a similar finding in the prior year. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: The Financial Aid Director and auditor worked together to determine the number of days that were in the semester for the first student and the amount of Federal Pell Grant funds the second student was eligible to receive. The R2T4s were recalculated for the students in question. On October 24, 2024, $558 of Federal Pell Grant funds were returned to the Department of Education for the first student in question and $102 of Federal Pell Grant funds were awarded to the second student in question. In addition, we recommend completing the free R2T4 training track provided by the Department of Education at https://fsatraining.ed.gov/. This site is also a great resource for free live webinars and self-paced courses on various student financial aid topics. Management Response: Management agrees with the auditors’ finding and their recommendation. $558 of Federal Pell Grant funds were returned for the first student in question and $102 of Federal Pell Grant funds were awarded to the second student in question on October 24, 2024.
Finding 2024-001
Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Direct Student Loan Program ALN and Program Expenditures: 84.268 ($1,647,759) Award Number: P268K243629 Federal Award Year: July 1, 2023 to June 30, 2024 Questioned Costs: $1,000 Condition Found: The amount of unsubsidized Federal Direct Loans awarded was incorrect for one of thirty-two students in our sample that received Federal Direct Loans. Criteria: The annual Federal Direct Loan Limit is $5,500 for freshman, $6,500 for sophomores, and $7,500 for juniors and seniors. Cause: While the student was enrolled in fifteen credit hours in fall 2023 semester, the student only passed three credit hours for the semester. Therefore, the student did not have enough credit hours to qualify for Federal Direct Loans at the junior/senior level. Aid was awarded based on the assumption the student would pass all of classes in the fall 2023 semester and then qualify for an additional $1,000 of Federal Direct Loan funds. Cumulative credit hours completed were not verified before disbursing spring 2024 aid. Possible Asserted Effect: The student was awarded an unsubsidized federal direct loan at the junior level when for financial aid purposes the student was at sophomore level. Therefore, the student was only eligible to receive $6,500 in Federal Direct Loans instead of the $7,500 received. $1,000 should be returned to the Department of Education. Repeat Finding: There was not a similar finding in the prior year. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation:$1,000 of unsubsidized loan funds should be returned to the Department of Education. Credit hours completed should be reviewed before aid is disbursed. Management Response: Management agrees with the auditors’ finding and their recommendation. The Financial Aid Director returned $1,000 of unsubsidized Federal Direct Loan funds to the Department of Education on October 24, 2024. The financial aid office and registrar’s office will work together to ensure that both parties are aware of the student’s credit hours passed and their eligibility for federal aid.
Finding 2024-002
Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Pell Grant ALN and Program Expenditures: 84.063 ($956,966) Award Number: P063P233629 Federal Award Year: July 1, 2023 to June 30, 2024 Questioned Costs: $660 Condition Found: The R2T4 calculation was completed incorrectly for two of the fourteen R2T4s reviewed during our audit. All of the R2T4s completed by College during the year ended June 30, 2024 were reviewed during the audit. For one student, the number of days in the semester used in the calculation was incorrect. For the second student, the amount of Pell awarded and used in the calculation was incorrect. Criteria: For the first student, the total number of days in the semester for the purposes of the R2T4 calculation is the sum of the start and end dates noted in the academic calendar less any scheduled breaks of five days or more. For the second student, the amount awarded in Pell Grant funds is based on the student’s expected family contribution (“EFC”), the number of credit hours the student is enrolled in, and the student’s cost of attendance. In addition, if a student is enrolled in module courses, the Pell grant funds awarded must be adjusted for modules that the student did not begin. Cause: For the first student, the Director of Financial Aid miscalculated the number of days in the semester. The incorrect date was used for the last date of the semester. This was a typing error when entering the data to calculate the R2T4. There were two Pell errors for the second student. The incorrect amount of Pell was awarded based on the student’s EFC, enrollment status, and cost of attendance. In addition, Pell Grant funds awarded were not adjusted for one module that the student did not begin attendance. Possible Asserted Effect: The R2T4 calculations were completed incorrectly. For the first student, an additional $558 of Federal Pell Grant funds should be returned to the Department of Education. The second student was eligible to receive an additional $102 of Federal Pell Grant funds. Repeat Finding: There was not a similar finding in the prior year. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: The Financial Aid Director and auditor worked together to determine the number of days that were in the semester for the first student and the amount of Federal Pell Grant funds the second student was eligible to receive. The R2T4s were recalculated for the students in question. On October 24, 2024, $558 of Federal Pell Grant funds were returned to the Department of Education for the first student in question and $102 of Federal Pell Grant funds were awarded to the second student in question. In addition, we recommend completing the free R2T4 training track provided by the Department of Education at https://fsatraining.ed.gov/. This site is also a great resource for free live webinars and self-paced courses on various student financial aid topics. Management Response: Management agrees with the auditors’ finding and their recommendation. $558 of Federal Pell Grant funds were returned for the first student in question and $102 of Federal Pell Grant funds were awarded to the second student in question on October 24, 2024.