Audit 347870

FY End
2024-06-30
Total Expended
$4.40M
Findings
2
Programs
4
Organization: Richmont Graduate University (TN)
Year: 2024 Accepted: 2025-03-25

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
529842 2024-001 Material Weakness - N
1106284 2024-001 Material Weakness - N

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $3.80M Yes 1
93.732 Mental and Behavioral Health Education and Training Grants $435,808 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $96,564 Yes 0
84.033 Federal Work-Study Program $67,590 Yes 0

Contacts

Name Title Type
J6PFZKD6UKK3 Thad Jablonski Auditee
4126482421 Ammiah Stafford 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. De Minimis Rate Used: N Rate Explanation: Richmont Graduate University has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal and state awards includes the federal grant activity of Richmont Graduate University under programs of the federal government and State of Tennessee 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 Richmont Graduate University, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Richmont Graduate University.
Title: Subrecipients Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: Richmont Graduate University has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Of the expenditures presented in the schedule, Richmont Graduate University did not provide federal or state awards to sub recipients.
Title: Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: Richmont Graduate University has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures reported on the schedule are reported on the accrual basis of accounting.
Title: Indirect Cost Rate Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: Richmont Graduate University has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Richmont Graduate University has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Federal Loans Disbursed Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: Richmont Graduate University has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The University participates in the Federal Direct Loan Program, including Federal Stafford Loans (Stafford) and Federal PLUS Loans (PLUS). The dollar amounts are listed in the schedule of federal awards although the University is not the recipient of the funds. Such programs are considered a component of the student financial assistance cluster. Loans processed by the University under this loan program were the following for the year ended June 30, 2024:

Finding Details

2024-001: Special Tests & Provisions Assistance Listing Title: Federal Direct Student Loans- SFA Cluster Assistance Listing Number: 84.268 Federal Award Year: 2023-2024 Federal Agency: Department of Education Federal Award Identification Number: P268K230377 (Direct Loan 2023) Pass-Through Agency: N/A Pass-Through Number(s): N/A Type of Finding: Material Weakness over Compliance Category of Finding: Special Tests- Enrollment Reporting Questioned Costs: $0 Condition: The University has no verifiable internal controls in place to ensure that the eligibility requirements for students receiving financial aid are maintained. Untimely reporting by the University of students’ changes in status during the 2023-2024 award year under audit. Criteria: The Code of Federal Regulations, 34 CFR 682.610, states that institutions must report accurately the enrollment status of all students regardless if they receive aid from the institution or not. This includes the enrollment effective date and related enrollment status, which must be reported for both the Campus-Level and the Program-Level as well as the program begin date. In addition, at a minimum, schools are required to certify enrollment every 60 days and respond within 15 days of the date that NSLDS sends a Roster file to the school or its third-party servicer. Cause: Lack of appropriate policy and procedure in place regarding NSLDS enrollment reporting for the year under audit. Context: This condition occurred for 40 out of 40 samples selected for testing. Effect: Non-compliance with federal regulations which could lead to untimely and incorrect reporting of enrollment information to NSLDS. Repeat Finding: No Recommendation: We recommend that the University review their enrollment reporting policies and procedures to ensure accurate reporting and roster uploads to NSLDS are made and certified within the 60 day compliance requirements. Views of Responsible Officials: There is no disagreement with the audit finding.
2024-001: Special Tests & Provisions Assistance Listing Title: Federal Direct Student Loans- SFA Cluster Assistance Listing Number: 84.268 Federal Award Year: 2023-2024 Federal Agency: Department of Education Federal Award Identification Number: P268K230377 (Direct Loan 2023) Pass-Through Agency: N/A Pass-Through Number(s): N/A Type of Finding: Material Weakness over Compliance Category of Finding: Special Tests- Enrollment Reporting Questioned Costs: $0 Condition: The University has no verifiable internal controls in place to ensure that the eligibility requirements for students receiving financial aid are maintained. Untimely reporting by the University of students’ changes in status during the 2023-2024 award year under audit. Criteria: The Code of Federal Regulations, 34 CFR 682.610, states that institutions must report accurately the enrollment status of all students regardless if they receive aid from the institution or not. This includes the enrollment effective date and related enrollment status, which must be reported for both the Campus-Level and the Program-Level as well as the program begin date. In addition, at a minimum, schools are required to certify enrollment every 60 days and respond within 15 days of the date that NSLDS sends a Roster file to the school or its third-party servicer. Cause: Lack of appropriate policy and procedure in place regarding NSLDS enrollment reporting for the year under audit. Context: This condition occurred for 40 out of 40 samples selected for testing. Effect: Non-compliance with federal regulations which could lead to untimely and incorrect reporting of enrollment information to NSLDS. Repeat Finding: No Recommendation: We recommend that the University review their enrollment reporting policies and procedures to ensure accurate reporting and roster uploads to NSLDS are made and certified within the 60 day compliance requirements. Views of Responsible Officials: There is no disagreement with the audit finding.