FAC Explorer

Audit 347176

FY End
2024-06-30
Total Expended
$33.48M
Findings
4
Programs
37
Organization: Chicago State University (IL)
Year: 2024 Accepted: 2025-03-20
Auditor: Roth & Company LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
529193 2024-004 Significant Deficiency Yes N
529194 2024-004 Significant Deficiency Yes N
1105635 2024-004 Significant Deficiency Yes N
1105636 2024-004 Significant Deficiency Yes N

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $17.74M Yes 1
84.063 Federal Pell Grant Program $4.95M Yes 0
84.038 Federal Perkins Loan Program_federal Capital Contributions $888,511 Yes 0
11.028 Connecting Minority Communities Pilot Program $741,793 Yes 0
93.575 Child Care and Development Block Grant $736,581 - 0
84.031 Higher Education Institutional Aid $664,599 - 0
93.925 Scholarships for Health Professions Students From Disadvantaged Backgrounds $625,000 Yes 0
84.033 Federal Work-Study Program $573,918 Yes 0
93.493 Congressional Directives $449,488 - 0
47.049 Mathematical and Physical Sciences $391,473 Yes 0
84.066 Trio Educational Opportunity Centers $358,259 - 0
84.047 Trio Upward Bound $342,342 - 0
84.425 Education Stabilization Fund $317,856 - 0
84.007 Federal Supplemental Educational Opportunity Grants $217,050 Yes 0
47.083 Integrative Activities $162,747 Yes 0
84.116 Fund for the Improvement of Postsecondary Education $158,758 Yes 0
93.600 Head Start $158,434 - 0
47.076 Stem Education (formerly Education and Human Resources) $114,069 Yes 0
47.084 Nsf Technology, Innovation, and Partnerships $112,407 Yes 0
81.049 Office of Science Financial Assistance Program $88,559 - 0
84.120 Minority Science and Engineering Improvement $84,705 - 0
43.008 Office of Stem Engagement (ostem) $82,806 Yes 0
47.074 Biological Sciences $73,553 Yes 0
84.335 Child Care Access Means Parents in School $59,119 - 0
84.382 Strengthening Minority-Serving Institutions $58,545 - 0
93.846 Arthritis, Musculoskeletal and Skin Diseases Research $49,850 Yes 0
84.325 Special Education - Personnel Development to Improve Services and Results for Children with Disabilities $49,459 - 0
93.000 Maternal and Child Health $38,141 - 0
20.701 University Transportation Centers Program $32,117 Yes 0
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $23,575 Yes 1
47.070 Computer and Information Science and Engineering $21,783 Yes 0
43.001 Science $18,605 Yes 0
93.859 Biomedical Research and Research Training $13,307 Yes 0
10.310 Agriculture and Food Research Initiative (afri) $9,094 Yes 0
43.002 Aeronautics $6,231 Yes 0
45.312 National Leadership Grants $2,981 - 0
93.093 Health Profession Opportunity Grants $26 - 0

Contacts

Name Title Type
PJ66MZ7MFZ16 Nicole Latimer-Williams Auditee
7739952824 Darlene Dizon Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 - BASIS OF PRESENTATION Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity for the year ended June 30, 2024, and is presented on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. The University has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. 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 includes the federal grant activity for the year ended June 30, 2024, and is presented on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. The University has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: NOTE 2 - LOANS OUTSTANDING AT FISCAL YEAR END Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity for the year ended June 30, 2024, and is presented on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. The University has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The University Perkins Loan Program’s outstanding loan balance as of June 30, 2024 totaled $773,829, for programs that are administered directly. Loans outstanding at the beginning of the year and loans made during the year are included in the federal expenditures presented in the schedule. There were no administrative costs charged to the Perkins Loan Program.
Title: NOTE 3 - TOTAL NEW FEDERAL STUDENT LOANS Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity for the year ended June 30, 2024, and is presented on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. The University has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. During the year ended June 30, 2024, the University awarded the following amounts of new loans under the Federal Direct Student Loans Program: Direct Unsubsidized Loans $ 9,902,403 Direct Subsidized Loans 1,988,402 Direct Parent PLUS Loans 452,115 Direct Graduate PLUS Loans 5,393,377 Total $ 17,736,297 There were no administrative costs charged to the loan program.
Title: NOTE 4 - NONMONETARY ASSISTANCE Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity for the year ended June 30, 2024, and is presented on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. The University has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. During the period, the University did not receive any nonmonetary assistance.
Title: NOTE 5 - INSURANCE DISCLOSURE Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity for the year ended June 30, 2024, and is presented on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. The University has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. During the period, there was no federally-funded insurance in effect.
Title: NOTE 6 - DONATED PERSONAL PROTECTIVE EQUIPMENT Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity for the year ended June 30, 2024, and is presented on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. The University has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. During Fiscal Year 2024, the University did not receive any donated personal protective equipment.

Finding Details

Finding 2024-004
2024-004. FINDING Failure to Notify Students and Parents Upon Disbursement of Funds Federal Agency: U.S. Department of Education Assistance Listing Numbers: 84.379; 84.268 Program Names: Student Financial Assistance Cluster - Teacher Education Assistance for College and Higher Education Grants Federal Direct Student Loans Program Expenditures: $23,575, $17,736,297 Award Numbers: P379T221351; P268K221351 Questioned Costs: None The Chicago State University (University) did not notify the students and parents upon disbursement of grant funds and loans. Conditions Found During testing of five students, who received Teacher Education Assistance for College and Higher Education (TEACH) Grants totaling $15,088, we noted one (20%) student with a grant disbursement amounting to $3,772 was notified by the University 98 days before the TEACH funds were credited to the student’s account. The sample methods used in performing this testing were not statistically valid. In addition, during testing of 40 students, who received Federal Direct Loans totaling $597,967, we noted the following: • Six (15%) students with grant disbursements totaling $60,860 were not notified by the University indicating the funds were credited to the students’ accounts. • Seven (18%) students with grant disbursements totaling $44,586 were notified 35 to 120 days before or after the Federal Direct Loan funds were credited to the students’ accounts. The sample methods used in performing this testing were not statistically valid. Evaluative Criteria The Code of Federal Regulations (Code) (34 CFR § 668.165 (a)(3)(i)) requires the University to notify students or parents in writing no earlier than 30 days before, and no later than 30 days after, crediting the student’s ledger account at the University with TEACH Grant funds and Federal Direct Loans.   Further, the Code (2 CFR § 200.303) requires the nonfederal entity receiving federal awards to establish and maintain effective internal control over the federal award to provide reasonable assurance the nonfederal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Effective internal controls include procedures to ensure timely notification of disbursements to students receiving TEACH Grants and Federal Direct Loans. Underlying Cause University management indicated the failure to timely notify students and parents upon disbursements of TEACH Grants and Federal Direct Loans was due to a student aid simplification process that caused errors in financial aid processing. University management further indicated the Enterprise Resource Planning (ERP) System experienced a technical glitch during the process of sending notifications to students. Significance Failure to timely notify students and parents regarding grant and loan disbursements represents noncompliance with the Code. (Finding Code No. 2024-004, 2023-005, 2022-005) RECOMMENDATION We recommend the University strengthen controls to ensure timely notifications are sent to students and parents upon disbursement of grant funds and loans. UNIVERSITY RESPONSE The University agrees with the recommendation. An additional level of oversight has been added to ensure the notification of disbursement information is sent in a timely manner. The Associate Director of Financial Aid and the Director of Financial Aid will review the list of disbursements against the list of emails sent to ensure that emails are sent in a timely manner. The additional oversight will begin with the Summer 2025 disbursement based on the date of notification of the issue.
Finding 2024-004
2024-004. FINDING Failure to Notify Students and Parents Upon Disbursement of Funds Federal Agency: U.S. Department of Education Assistance Listing Numbers: 84.379; 84.268 Program Names: Student Financial Assistance Cluster - Teacher Education Assistance for College and Higher Education Grants Federal Direct Student Loans Program Expenditures: $23,575, $17,736,297 Award Numbers: P379T221351; P268K221351 Questioned Costs: None The Chicago State University (University) did not notify the students and parents upon disbursement of grant funds and loans. Conditions Found During testing of five students, who received Teacher Education Assistance for College and Higher Education (TEACH) Grants totaling $15,088, we noted one (20%) student with a grant disbursement amounting to $3,772 was notified by the University 98 days before the TEACH funds were credited to the student’s account. The sample methods used in performing this testing were not statistically valid. In addition, during testing of 40 students, who received Federal Direct Loans totaling $597,967, we noted the following: • Six (15%) students with grant disbursements totaling $60,860 were not notified by the University indicating the funds were credited to the students’ accounts. • Seven (18%) students with grant disbursements totaling $44,586 were notified 35 to 120 days before or after the Federal Direct Loan funds were credited to the students’ accounts. The sample methods used in performing this testing were not statistically valid. Evaluative Criteria The Code of Federal Regulations (Code) (34 CFR § 668.165 (a)(3)(i)) requires the University to notify students or parents in writing no earlier than 30 days before, and no later than 30 days after, crediting the student’s ledger account at the University with TEACH Grant funds and Federal Direct Loans.   Further, the Code (2 CFR § 200.303) requires the nonfederal entity receiving federal awards to establish and maintain effective internal control over the federal award to provide reasonable assurance the nonfederal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Effective internal controls include procedures to ensure timely notification of disbursements to students receiving TEACH Grants and Federal Direct Loans. Underlying Cause University management indicated the failure to timely notify students and parents upon disbursements of TEACH Grants and Federal Direct Loans was due to a student aid simplification process that caused errors in financial aid processing. University management further indicated the Enterprise Resource Planning (ERP) System experienced a technical glitch during the process of sending notifications to students. Significance Failure to timely notify students and parents regarding grant and loan disbursements represents noncompliance with the Code. (Finding Code No. 2024-004, 2023-005, 2022-005) RECOMMENDATION We recommend the University strengthen controls to ensure timely notifications are sent to students and parents upon disbursement of grant funds and loans. UNIVERSITY RESPONSE The University agrees with the recommendation. An additional level of oversight has been added to ensure the notification of disbursement information is sent in a timely manner. The Associate Director of Financial Aid and the Director of Financial Aid will review the list of disbursements against the list of emails sent to ensure that emails are sent in a timely manner. The additional oversight will begin with the Summer 2025 disbursement based on the date of notification of the issue.
Finding 2024-004
2024-004. FINDING Failure to Notify Students and Parents Upon Disbursement of Funds Federal Agency: U.S. Department of Education Assistance Listing Numbers: 84.379; 84.268 Program Names: Student Financial Assistance Cluster - Teacher Education Assistance for College and Higher Education Grants Federal Direct Student Loans Program Expenditures: $23,575, $17,736,297 Award Numbers: P379T221351; P268K221351 Questioned Costs: None The Chicago State University (University) did not notify the students and parents upon disbursement of grant funds and loans. Conditions Found During testing of five students, who received Teacher Education Assistance for College and Higher Education (TEACH) Grants totaling $15,088, we noted one (20%) student with a grant disbursement amounting to $3,772 was notified by the University 98 days before the TEACH funds were credited to the student’s account. The sample methods used in performing this testing were not statistically valid. In addition, during testing of 40 students, who received Federal Direct Loans totaling $597,967, we noted the following: • Six (15%) students with grant disbursements totaling $60,860 were not notified by the University indicating the funds were credited to the students’ accounts. • Seven (18%) students with grant disbursements totaling $44,586 were notified 35 to 120 days before or after the Federal Direct Loan funds were credited to the students’ accounts. The sample methods used in performing this testing were not statistically valid. Evaluative Criteria The Code of Federal Regulations (Code) (34 CFR § 668.165 (a)(3)(i)) requires the University to notify students or parents in writing no earlier than 30 days before, and no later than 30 days after, crediting the student’s ledger account at the University with TEACH Grant funds and Federal Direct Loans.   Further, the Code (2 CFR § 200.303) requires the nonfederal entity receiving federal awards to establish and maintain effective internal control over the federal award to provide reasonable assurance the nonfederal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Effective internal controls include procedures to ensure timely notification of disbursements to students receiving TEACH Grants and Federal Direct Loans. Underlying Cause University management indicated the failure to timely notify students and parents upon disbursements of TEACH Grants and Federal Direct Loans was due to a student aid simplification process that caused errors in financial aid processing. University management further indicated the Enterprise Resource Planning (ERP) System experienced a technical glitch during the process of sending notifications to students. Significance Failure to timely notify students and parents regarding grant and loan disbursements represents noncompliance with the Code. (Finding Code No. 2024-004, 2023-005, 2022-005) RECOMMENDATION We recommend the University strengthen controls to ensure timely notifications are sent to students and parents upon disbursement of grant funds and loans. UNIVERSITY RESPONSE The University agrees with the recommendation. An additional level of oversight has been added to ensure the notification of disbursement information is sent in a timely manner. The Associate Director of Financial Aid and the Director of Financial Aid will review the list of disbursements against the list of emails sent to ensure that emails are sent in a timely manner. The additional oversight will begin with the Summer 2025 disbursement based on the date of notification of the issue.
Finding 2024-004
2024-004. FINDING Failure to Notify Students and Parents Upon Disbursement of Funds Federal Agency: U.S. Department of Education Assistance Listing Numbers: 84.379; 84.268 Program Names: Student Financial Assistance Cluster - Teacher Education Assistance for College and Higher Education Grants Federal Direct Student Loans Program Expenditures: $23,575, $17,736,297 Award Numbers: P379T221351; P268K221351 Questioned Costs: None The Chicago State University (University) did not notify the students and parents upon disbursement of grant funds and loans. Conditions Found During testing of five students, who received Teacher Education Assistance for College and Higher Education (TEACH) Grants totaling $15,088, we noted one (20%) student with a grant disbursement amounting to $3,772 was notified by the University 98 days before the TEACH funds were credited to the student’s account. The sample methods used in performing this testing were not statistically valid. In addition, during testing of 40 students, who received Federal Direct Loans totaling $597,967, we noted the following: • Six (15%) students with grant disbursements totaling $60,860 were not notified by the University indicating the funds were credited to the students’ accounts. • Seven (18%) students with grant disbursements totaling $44,586 were notified 35 to 120 days before or after the Federal Direct Loan funds were credited to the students’ accounts. The sample methods used in performing this testing were not statistically valid. Evaluative Criteria The Code of Federal Regulations (Code) (34 CFR § 668.165 (a)(3)(i)) requires the University to notify students or parents in writing no earlier than 30 days before, and no later than 30 days after, crediting the student’s ledger account at the University with TEACH Grant funds and Federal Direct Loans.   Further, the Code (2 CFR § 200.303) requires the nonfederal entity receiving federal awards to establish and maintain effective internal control over the federal award to provide reasonable assurance the nonfederal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Effective internal controls include procedures to ensure timely notification of disbursements to students receiving TEACH Grants and Federal Direct Loans. Underlying Cause University management indicated the failure to timely notify students and parents upon disbursements of TEACH Grants and Federal Direct Loans was due to a student aid simplification process that caused errors in financial aid processing. University management further indicated the Enterprise Resource Planning (ERP) System experienced a technical glitch during the process of sending notifications to students. Significance Failure to timely notify students and parents regarding grant and loan disbursements represents noncompliance with the Code. (Finding Code No. 2024-004, 2023-005, 2022-005) RECOMMENDATION We recommend the University strengthen controls to ensure timely notifications are sent to students and parents upon disbursement of grant funds and loans. UNIVERSITY RESPONSE The University agrees with the recommendation. An additional level of oversight has been added to ensure the notification of disbursement information is sent in a timely manner. The Associate Director of Financial Aid and the Director of Financial Aid will review the list of disbursements against the list of emails sent to ensure that emails are sent in a timely manner. The additional oversight will begin with the Summer 2025 disbursement based on the date of notification of the issue.