FAC Explorer

Audit 347797

FY End
2024-06-30
Total Expended
$4.94M
Findings
4
Programs
4
Organization: Truett McConnell University (GA)
Year: 2024 Accepted: 2025-03-24
Auditor: Carr Riggs & Ingram LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
529812 2024-001 Significant Deficiency - N
529813 2024-001 Significant Deficiency - N
1106254 2024-001 Significant Deficiency - N
1106255 2024-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $3.41M Yes 1
84.063 Federal Pell Grant Program $1.41M Yes 1
84.033 Federal Work-Study Program $64,282 Yes 0
84.007 Federal Supplemental Educational Opportunity Grants $46,814 Yes 0

Contacts

Name Title Type
FK6WKFCGLFK6 Jason Graffagnino Auditee
7068652134 Billy Minch Auditor
No contacts on file

Notes to SEFA

Title: FEDERAL DIRECT STUDENT LOAN PROGRAM Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Truett McConnell University 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, Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited to reimbursement. Pass-through identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. During the fiscal year ended June 30, 2024, the University processed new loans, net of origination fees, under the Federal Direct Student Loan program totaling $3,411,646. For loans processed under this program, the University is only responsible for performance of certain administrative duties, and, accordingly, these loans are not included as assets in the University’s financial statements. It is not practical to determine the balance of loans outstanding and former students of the University under the Federal Direct Student Loan program as of June 30, 2024.
Title: CONTINGENCIES Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Truett McConnell University 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, Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited to reimbursement. Pass-through identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Grant monies received and disbursed are for specific purposes and are subject to review by the grantor agencies. Such audits may result in requests for reimbursement due to disallowed expenditures. Management does not believe that such disallowance, if any, would have a material effect on its financial position. As of June 30, 2024 there were no material questioned or disallowed costs as a result of the grant audits in process or completed.
Title: INDIRECT COST Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Truett McConnell University 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, Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited to reimbursement. Pass-through identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Truett McConnell University has not elected to use the 10% de minimis indirect cost rate.
Title: OTHER INFORMATION Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Truett McConnell University 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, Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited to reimbursement. Pass-through identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The University did not provide any federal funds to subrecipients nor did they receive any federal non-cash assistance, insurance, loans, or loan guarantees for the year ended June 30, 2024.

Finding Details

Finding 2024-001
Finding 2024-001: Special Tests and Provisions: Enrollment Reporting Program Name: Student Financial Assistance Cluster: Federal Supplemental Educational Opportunity Grants, Assistance Listing No. 84.007 Federal Work-Study Program, Assistance Listing No. 84.033 Federal Pell Grant Program, Assistance Listing No. 84.063 Federal Direct Student Loans. Assistance Listing No. 84.268 Awarding Agency: U.S. Department of Education Finding Type: Significant Deficiency on Internal Controls over Compliance Questioned Costs: None Criteria: Per Title 2 US Code of Federal Regulations Part 200.303a, non-federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In addition, the Department of Education relies on institution’s enrollments reports to determine a student’s enrollment status based on reductions or increases in attendance levels, withdrawals, graduations or approved leaves-of-absence. According to 34 CFR 690.83(b)(2) and 685.309, the University is required to submit changes in student attendance to the National Student Loan Data System (NSLDS) at a minimum of every 60 days. Context/Condition: Of the 43 students selected for enrollment reporting testing, eight student withdrawals within the sample were reported to NSLDS outside the maximum 60-day window. This was not a statistically valid sample. Cause: The University did not have effective controls in place to ensure timely reporting of all status changes. Effect: Without timely notification of withdrawals or graduation, the NSLDS is unable to accurately determine when a student enters repayment status.   Recommendation: We recommend that the University review and update internal controls to ensure student enrollment status in the NSLDS is updated in a timely manner to ensure compliance with Federal requirements. Views of Responsible Officials: Management agrees with the finding. See accompanying Corrective Action Plan.
Finding 2024-001
Finding 2024-001: Special Tests and Provisions: Enrollment Reporting Program Name: Student Financial Assistance Cluster: Federal Supplemental Educational Opportunity Grants, Assistance Listing No. 84.007 Federal Work-Study Program, Assistance Listing No. 84.033 Federal Pell Grant Program, Assistance Listing No. 84.063 Federal Direct Student Loans. Assistance Listing No. 84.268 Awarding Agency: U.S. Department of Education Finding Type: Significant Deficiency on Internal Controls over Compliance Questioned Costs: None Criteria: Per Title 2 US Code of Federal Regulations Part 200.303a, non-federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In addition, the Department of Education relies on institution’s enrollments reports to determine a student’s enrollment status based on reductions or increases in attendance levels, withdrawals, graduations or approved leaves-of-absence. According to 34 CFR 690.83(b)(2) and 685.309, the University is required to submit changes in student attendance to the National Student Loan Data System (NSLDS) at a minimum of every 60 days. Context/Condition: Of the 43 students selected for enrollment reporting testing, eight student withdrawals within the sample were reported to NSLDS outside the maximum 60-day window. This was not a statistically valid sample. Cause: The University did not have effective controls in place to ensure timely reporting of all status changes. Effect: Without timely notification of withdrawals or graduation, the NSLDS is unable to accurately determine when a student enters repayment status.   Recommendation: We recommend that the University review and update internal controls to ensure student enrollment status in the NSLDS is updated in a timely manner to ensure compliance with Federal requirements. Views of Responsible Officials: Management agrees with the finding. See accompanying Corrective Action Plan.
Finding 2024-001
Finding 2024-001: Special Tests and Provisions: Enrollment Reporting Program Name: Student Financial Assistance Cluster: Federal Supplemental Educational Opportunity Grants, Assistance Listing No. 84.007 Federal Work-Study Program, Assistance Listing No. 84.033 Federal Pell Grant Program, Assistance Listing No. 84.063 Federal Direct Student Loans. Assistance Listing No. 84.268 Awarding Agency: U.S. Department of Education Finding Type: Significant Deficiency on Internal Controls over Compliance Questioned Costs: None Criteria: Per Title 2 US Code of Federal Regulations Part 200.303a, non-federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In addition, the Department of Education relies on institution’s enrollments reports to determine a student’s enrollment status based on reductions or increases in attendance levels, withdrawals, graduations or approved leaves-of-absence. According to 34 CFR 690.83(b)(2) and 685.309, the University is required to submit changes in student attendance to the National Student Loan Data System (NSLDS) at a minimum of every 60 days. Context/Condition: Of the 43 students selected for enrollment reporting testing, eight student withdrawals within the sample were reported to NSLDS outside the maximum 60-day window. This was not a statistically valid sample. Cause: The University did not have effective controls in place to ensure timely reporting of all status changes. Effect: Without timely notification of withdrawals or graduation, the NSLDS is unable to accurately determine when a student enters repayment status.   Recommendation: We recommend that the University review and update internal controls to ensure student enrollment status in the NSLDS is updated in a timely manner to ensure compliance with Federal requirements. Views of Responsible Officials: Management agrees with the finding. See accompanying Corrective Action Plan.
Finding 2024-001
Finding 2024-001: Special Tests and Provisions: Enrollment Reporting Program Name: Student Financial Assistance Cluster: Federal Supplemental Educational Opportunity Grants, Assistance Listing No. 84.007 Federal Work-Study Program, Assistance Listing No. 84.033 Federal Pell Grant Program, Assistance Listing No. 84.063 Federal Direct Student Loans. Assistance Listing No. 84.268 Awarding Agency: U.S. Department of Education Finding Type: Significant Deficiency on Internal Controls over Compliance Questioned Costs: None Criteria: Per Title 2 US Code of Federal Regulations Part 200.303a, non-federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In addition, the Department of Education relies on institution’s enrollments reports to determine a student’s enrollment status based on reductions or increases in attendance levels, withdrawals, graduations or approved leaves-of-absence. According to 34 CFR 690.83(b)(2) and 685.309, the University is required to submit changes in student attendance to the National Student Loan Data System (NSLDS) at a minimum of every 60 days. Context/Condition: Of the 43 students selected for enrollment reporting testing, eight student withdrawals within the sample were reported to NSLDS outside the maximum 60-day window. This was not a statistically valid sample. Cause: The University did not have effective controls in place to ensure timely reporting of all status changes. Effect: Without timely notification of withdrawals or graduation, the NSLDS is unable to accurately determine when a student enters repayment status.   Recommendation: We recommend that the University review and update internal controls to ensure student enrollment status in the NSLDS is updated in a timely manner to ensure compliance with Federal requirements. Views of Responsible Officials: Management agrees with the finding. See accompanying Corrective Action Plan.