FAC Explorer

Audit 342533

FY End
2024-09-30
Total Expended
$28.60M
Findings
4
Programs
17
Organization: John C. Calhoun Community College (AL)
Year: 2024 Accepted: 2025-02-14
Auditor: Mauldin & Jenkins LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
523270 2024-001 - - N
523271 2024-002 - - N
1099712 2024-001 - - N
1099713 2024-002 - - N

Programs

ALN Program Spent Major Findings
84.063 Federal Pell Grant Program $15.12M Yes 2
84.268 Federal Direct Student Loans $9.29M Yes 0
84.425 Education Stabilization Fund $1.81M - 0
84.002 Adult Education - Basic Grants to States $831,937 Yes 0
84.031 Higher Education Institutional Aid $333,438 - 0
84.048 Career and Technical Education -- Basic Grants to States $326,204 - 0
84.007 Federal Supplemental Educational Opportunity Grants $272,500 Yes 0
84.033 Federal Work-Study Program $253,155 Yes 0
23.002 Appalachian Area Development $105,236 - 0
17.268 H-1b Job Training Grants $96,632 - 0
17.258 Wioa Adult Program $58,429 - 0
12.600 Community Investment $29,500 - 0
12.001 Industrial Equipment Loans to Educational Institutions $27,351 - 0
47.076 Stem Education (formerly Education and Human Resources) $18,615 - 0
17.259 Wioa Youth Activities $15,569 - 0
17.278 Wioa Dislocated Worker Formula Grants $9,339 - 0
94.006 Americorps State and National 94.006 $5,822 - 0

Contacts

Name Title Type
ZTVHKDEBJ1Y5 Jason Morgan Auditee
2563062545 Jeremy Blackburn Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: 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. The College has elected not to use the 10-percent de minimus indirect cost rate allowed under the Uniform Guidance. For purposes of the Schedule, federal awards include all grants, contracts and similar agreements entered into directly between the College and agencies and departments of the federal government and all subawards to the College by nonfederal organizations pursuant to federal grants, contracts and similar agreements. The awards are classified into Type A and Type B categories in accordance with the provisions of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Programs classified as Type A are as follows: Student Financial Aid Cluster, Higher Education Emergency Relief Fund De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of John C. Calhoun Community College (the “College”) under programs of the federal government for the year ended September 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 position or cash flows of the College.
Title: Federal Direct Student Loan Program Accounting Policies: 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. The College has elected not to use the 10-percent de minimus indirect cost rate allowed under the Uniform Guidance. For purposes of the Schedule, federal awards include all grants, contracts and similar agreements entered into directly between the College and agencies and departments of the federal government and all subawards to the College by nonfederal organizations pursuant to federal grants, contracts and similar agreements. The awards are classified into Type A and Type B categories in accordance with the provisions of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Programs classified as Type A are as follows: Student Financial Aid Cluster, Higher Education Emergency Relief Fund De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Direct Loan program enables an eligible student or parent to obtain a loan to pay for the student’s cost of attendance directly through the College rather than through private lenders. As a college qualified to originate loans, the College is responsible for handling the complete loan origination process, including funds management and promissory note functions. During the program year, the College processed approximately $9.3 million of student loans under the Direct Loan program.

Finding Details

Finding 2024-001
CRITERIA: 34 CFR part 668 establishes rules governing the student withdrawal process including the return of unearned Title IV aid within 45 days of a student’s withdrawal. CONDITION: Through our Return of Title IV Funds testing, we noted 2 out of 40 selections for which the students began attendance but subsequently withdrew and their unearned title IV funds were not returned within 45 days of the withdrawal date. QUESTIONED COSTS: None. Amounts were returned, just not within 45 day window. CAUSE/EFFECT: The automated Banner reports that detail withdrawn students with federal aid did not include all withdrawn students. As the system report did not include the appropriate details for the student’s withdrawals, as they were either not included in the report or were reported as not receiving federal aid, a return to title IV calculation was not performed. As such, the required return of funds was not calculated timely and the College was not in compliance with the Return of Title IV Funds requirements. RECOMMENDATION: The auditor recommends the College enhance its controls and incorporate multiple individuals in the process to ensure that Title IV refunds are calculated and made timely. VIEW OF RESONSIBLE OFFICIALS: Management concurs with this finding and has taken steps towards the reassessment of controls, review these accounts and implement controls to ensure that timely calculations and refunds are made.
Finding 2024-002
CRITERIA: 34 CFR part 690 establishes rules governing the accuracy and timeliness of enrollment reporting to the National Student Loan Data System (“NSLDS”). Schools are required to confirm and report to the National Student Loan Data System (“NSLDS”) the enrollment status of students who receive federal funds. Enrollment information is used to determine the borrower’s eligibility for in-school status, deferment, interest subsidy, and grace period. Enrollment changes, such as a change from full-time to half-time status, graduation, withdrawal, or an approved leave of absence, are changes that need to be reported. The enrollment information is merged into the NSLDS database and reported to guarantors, lenders, and servicers of student loans. CONDITION: Through our Enrollment Reporting testing, we noted 5 out of 40 selections for which the students had a change in enrollment status but were not included in the enrollment reporting to NSLDS within 60 days of the change in enrollment. QUESTIONED COSTS: None. CAUSE/EFFECT: The automated Banner reports that process student enrollment status changes in Banner and notifies the College of students to send to the National Student Clearinghouse (NSC) for reporting to NSLDS did not include all students with changes. As the system report did not include the appropriate details for the student changes, as they were not included in the report, they were not included in the reports sent to NSC for reporting. As such, the required enrollment reporting for these students was not performed timely and the College was not in compliance with the Enrollment Reporting timeline requirements. RECOMMENDATION: The auditor recommends the College enhance its controls and incorporate multiple individuals in the process to ensure that student enrollment changes are captured and reported timely. VIEW OF RESONSIBLE OFFICIALS: Management concurs with this finding and has taken steps towards the reassessment of controls, review these accounts and implement controls to ensure that timely reporting to NSC is performed.
Finding 2024-001
CRITERIA: 34 CFR part 668 establishes rules governing the student withdrawal process including the return of unearned Title IV aid within 45 days of a student’s withdrawal. CONDITION: Through our Return of Title IV Funds testing, we noted 2 out of 40 selections for which the students began attendance but subsequently withdrew and their unearned title IV funds were not returned within 45 days of the withdrawal date. QUESTIONED COSTS: None. Amounts were returned, just not within 45 day window. CAUSE/EFFECT: The automated Banner reports that detail withdrawn students with federal aid did not include all withdrawn students. As the system report did not include the appropriate details for the student’s withdrawals, as they were either not included in the report or were reported as not receiving federal aid, a return to title IV calculation was not performed. As such, the required return of funds was not calculated timely and the College was not in compliance with the Return of Title IV Funds requirements. RECOMMENDATION: The auditor recommends the College enhance its controls and incorporate multiple individuals in the process to ensure that Title IV refunds are calculated and made timely. VIEW OF RESONSIBLE OFFICIALS: Management concurs with this finding and has taken steps towards the reassessment of controls, review these accounts and implement controls to ensure that timely calculations and refunds are made.
Finding 2024-002
CRITERIA: 34 CFR part 690 establishes rules governing the accuracy and timeliness of enrollment reporting to the National Student Loan Data System (“NSLDS”). Schools are required to confirm and report to the National Student Loan Data System (“NSLDS”) the enrollment status of students who receive federal funds. Enrollment information is used to determine the borrower’s eligibility for in-school status, deferment, interest subsidy, and grace period. Enrollment changes, such as a change from full-time to half-time status, graduation, withdrawal, or an approved leave of absence, are changes that need to be reported. The enrollment information is merged into the NSLDS database and reported to guarantors, lenders, and servicers of student loans. CONDITION: Through our Enrollment Reporting testing, we noted 5 out of 40 selections for which the students had a change in enrollment status but were not included in the enrollment reporting to NSLDS within 60 days of the change in enrollment. QUESTIONED COSTS: None. CAUSE/EFFECT: The automated Banner reports that process student enrollment status changes in Banner and notifies the College of students to send to the National Student Clearinghouse (NSC) for reporting to NSLDS did not include all students with changes. As the system report did not include the appropriate details for the student changes, as they were not included in the report, they were not included in the reports sent to NSC for reporting. As such, the required enrollment reporting for these students was not performed timely and the College was not in compliance with the Enrollment Reporting timeline requirements. RECOMMENDATION: The auditor recommends the College enhance its controls and incorporate multiple individuals in the process to ensure that student enrollment changes are captured and reported timely. VIEW OF RESONSIBLE OFFICIALS: Management concurs with this finding and has taken steps towards the reassessment of controls, review these accounts and implement controls to ensure that timely reporting to NSC is performed.