Audit 349884

FY End
2024-06-30
Total Expended
$22.06M
Findings
28
Programs
10
Organization: Felician University (NJ)
Year: 2024 Accepted: 2025-03-28

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
539152 2024-001 Material Weakness Yes N
539153 2024-001 Material Weakness Yes N
539154 2024-002 Significant Deficiency Yes L
539155 2024-002 Significant Deficiency Yes L
539156 2024-003 Significant Deficiency - N
539157 2024-003 Significant Deficiency - N
539158 2024-003 Significant Deficiency - N
539159 2024-003 Significant Deficiency - N
539160 2024-004 Significant Deficiency - N
539161 2024-004 Significant Deficiency - N
539162 2024-004 Significant Deficiency - N
539163 2024-004 Significant Deficiency - N
539164 2024-005 Significant Deficiency Yes I
539165 2024-006 Material Weakness - L
1115594 2024-001 Material Weakness Yes N
1115595 2024-001 Material Weakness Yes N
1115596 2024-002 Significant Deficiency Yes L
1115597 2024-002 Significant Deficiency Yes L
1115598 2024-003 Significant Deficiency - N
1115599 2024-003 Significant Deficiency - N
1115600 2024-003 Significant Deficiency - N
1115601 2024-003 Significant Deficiency - N
1115602 2024-004 Significant Deficiency - N
1115603 2024-004 Significant Deficiency - N
1115604 2024-004 Significant Deficiency - N
1115605 2024-004 Significant Deficiency - N
1115606 2024-005 Significant Deficiency Yes I
1115607 2024-006 Material Weakness - L

Contacts

Name Title Type
C1EKLPFHLRL9 Tom Truchan Auditee
2015596094 Sara Doyle Auditor
No contacts on file

Notes to SEFA

Title: LOANS OUTSTANDING Accounting Policies: BASIS OF PRESENTATION The accompanying schedules of expenditures of federal awards and state awards (the Schedules) include the federal and state grant activity of Felician University (the University) under programs of the federal and state governments for the year ended June 30, 2024. The information in these schedules 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) and State of New Jersey, Department of the Treasury, Office of Management and Budget Circular 15-08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid. Because the Schedules present only a selected portion of the operations of the University, they are not intended to and do not present the financial position, changes in net assets, or cash flows of the University. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedules 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. De Minimis Rate Used: N Rate Explanation: The University elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The University is responsible only for the performance of certain administrative duties with respect to the Federal Direct Student Loan Program and the New Jersey College Loans to Assist State Students Program and, accordingly, these loans are not included in the University’s basic financial statements. It is not practical to determine the balance of loans outstanding to students of the University under these programs as of June 30, 2024. The University disbursed the following amounts of new loans under the Federal Direct Student Loan Program for the year ended June 30, 2024: Federal Direct Subsidized Loans -- $3,680,330 Federal Direct Unsubsidized Loans -- $7,119,421 PLUS Loans -- $1,982,173
Title: STUDENT FINANCIAL AID INSTITUTIONAL AND PROGRAM ELIGIBILITY MATRICS Accounting Policies: BASIS OF PRESENTATION The accompanying schedules of expenditures of federal awards and state awards (the Schedules) include the federal and state grant activity of Felician University (the University) under programs of the federal and state governments for the year ended June 30, 2024. The information in these schedules 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) and State of New Jersey, Department of the Treasury, Office of Management and Budget Circular 15-08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid. Because the Schedules present only a selected portion of the operations of the University, they are not intended to and do not present the financial position, changes in net assets, or cash flows of the University. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedules 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. De Minimis Rate Used: N Rate Explanation: The University elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The Institution is in compliance with the following institutional and program eligibility requirements under the Higher Education Act of 1965 and Federal regulations under 34 CFR 668.23: • Correspondence courses the institution offers under 34 CFR 600.7(b) and (g) • Regular students that enroll in correspondence courses under 34 CFR 600.7(b) and (g) • Institution’s regular students that are incarcerated under 34 CFR 600.7(c) and (g) • Completion rates for confined or incarcerated individuals enrolled in non-degree programs at nonprofit institutions under 34 CFR 600.7(c)(3)(ii) and (g) • Institution’s regular students that lack a high school diploma or its equivalent under 34 CFR 600.7(d) and (g) • Completion rates for short-term programs under 34 CFR 668.8(f) and (g) • Placement rates for short-term programs under https://www.ecfr.gov/current/title-34/subtitle-B/chapter-VI/part-668/subpart-A/section-668.834 CFR 668.8(e)(2)

Finding Details

Federal Agency: U.S. Department of Education Federal Program Name: Federal Pell Grant Program; Federal Direct Student Loans Assistance Listing Number: 84.063; 84.268 Federal Award Identification Number and Year: P063P241812; P063Q231812; P268K251812 – 2024 Award Period: July 01, 2023 – June 30, 2024 Type of Finding: • Material Weakness in Internal Control over Compliance, Material Noncompliance (Modified Opinion) Criteria or specific requirement: Per U.S. Department of Education (ED) regulations, all schools participating (or approved to participate) in the Federal Student Aid programs must have an arrangement to report student enrollment data to the National Student Loan Data System (NSLDS) through a roster file. The school is required to report enrollment status at both the school and program level. The school is required to report changes in the student’s enrollment status, the effective date of the status and an anticipated completion date. An academic program is defined as the combination of the school’s Office of Postsecondary Education Identification (OPEID) number and the program’s Classification of Instructional Program (CIP) code, credential level, and published program length. ED requires the University to report changes in enrollment status and indicate the date that the changes occurred (34 CFR 685.309). Changes in enrollment status must be reported within 30 days. However, if a roster file is expected within 60 days, you may provide the date on that roster file. In addition, regulations require that an institution make necessary corrections and return the records within 10 days for any roster files that don’t pass the NSLDS enrollment reporting edits. ED requires the University to report changes in enrollment status within 30 or 60 days that the University determined the changes occurred (34 CFR 682.610). Condition: Certain students’ enrollment information was not accurately or timely reported to the NSLDS. Questioned costs: None. Context: During our testing of enrollment information at both the program and campus-level detail, we noted the following: • 4 out of 60 students were never reported to the NSLDS • 20 out of 60 students’ change in status were not reported timely to the NSLDS • 3 out of 60 students’ enrollment status were not being certified at least every 60 days within the NSLDS • 12 out of 60 students’ program begin dates were reported incorrectly to the NSLDS • 2 out of 60 students were reported to the NSLDS with an incorrect enrollment status per campus-level records • 3 out of 60 students were reported to the NSLDS with an incorrect effective date per campus-level records • 3 out of 60 students were reported to the NSLDS with an incorrect enrollment status per program-level records • 5 out of 60 students were reported to the NSLDS with an incorrect effective date per program-level records Cause: The University uses a third-party servicer to submit their enrollment reports to the NSLDS. The enrollment information that was sent to the third-party servicer did not have enrollment information that followed the NSLDS guidelines. Effect: Inaccurate reporting to the NSLDS can result in incorrect determination of when the students’ grace period should begin. Repeat finding: Yes, 2023-003. Recommendation: We recommend the University evaluate its procedures and review regulations set by the Department of Education around NSLDS to ensure the University understands the definitions for each enrollment information that gets reported. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Education Federal Program Name: Federal Pell Grant Program; Federal Direct Student Loans Assistance Listing Number: 84.063; 84.268 Federal Award Identification Number and Year: P063P241812; P063Q231812; P268K251812 – 2024 Award Period: July 01, 2023 – June 30, 2024 Type of Finding: • Material Weakness in Internal Control over Compliance, Material Noncompliance (Modified Opinion) Criteria or specific requirement: Per U.S. Department of Education (ED) regulations, all schools participating (or approved to participate) in the Federal Student Aid programs must have an arrangement to report student enrollment data to the National Student Loan Data System (NSLDS) through a roster file. The school is required to report enrollment status at both the school and program level. The school is required to report changes in the student’s enrollment status, the effective date of the status and an anticipated completion date. An academic program is defined as the combination of the school’s Office of Postsecondary Education Identification (OPEID) number and the program’s Classification of Instructional Program (CIP) code, credential level, and published program length. ED requires the University to report changes in enrollment status and indicate the date that the changes occurred (34 CFR 685.309). Changes in enrollment status must be reported within 30 days. However, if a roster file is expected within 60 days, you may provide the date on that roster file. In addition, regulations require that an institution make necessary corrections and return the records within 10 days for any roster files that don’t pass the NSLDS enrollment reporting edits. ED requires the University to report changes in enrollment status within 30 or 60 days that the University determined the changes occurred (34 CFR 682.610). Condition: Certain students’ enrollment information was not accurately or timely reported to the NSLDS. Questioned costs: None. Context: During our testing of enrollment information at both the program and campus-level detail, we noted the following: • 4 out of 60 students were never reported to the NSLDS • 20 out of 60 students’ change in status were not reported timely to the NSLDS • 3 out of 60 students’ enrollment status were not being certified at least every 60 days within the NSLDS • 12 out of 60 students’ program begin dates were reported incorrectly to the NSLDS • 2 out of 60 students were reported to the NSLDS with an incorrect enrollment status per campus-level records • 3 out of 60 students were reported to the NSLDS with an incorrect effective date per campus-level records • 3 out of 60 students were reported to the NSLDS with an incorrect enrollment status per program-level records • 5 out of 60 students were reported to the NSLDS with an incorrect effective date per program-level records Cause: The University uses a third-party servicer to submit their enrollment reports to the NSLDS. The enrollment information that was sent to the third-party servicer did not have enrollment information that followed the NSLDS guidelines. Effect: Inaccurate reporting to the NSLDS can result in incorrect determination of when the students’ grace period should begin. Repeat finding: Yes, 2023-003. Recommendation: We recommend the University evaluate its procedures and review regulations set by the Department of Education around NSLDS to ensure the University understands the definitions for each enrollment information that gets reported. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Education Federal Program Name: Federal Pell Grant Program; Federal Direct Student Loans Assistance Listing Number: 84.063; 84.268 Federal Award Identification Number and Year: P063P241812; P063Q231812; P268K251812 - 2024 Award Period: July 01, 2023 – June 30, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: The Department of Education requires institutions to report the disbursement dates and amounts to the Common Origination and Disbursement (COD) system within 15 days of disbursing Pell and Direct Loan funds to a student (34 CFR 690.83(b)(2) and 34 CFR 685.309). Condition: During our testing of 40 disbursements, we noted the following: • 4 disbursement dates were incorrectly reported to COD • 8 disbursements were not reported to COD in a timely manner Questioned costs: None. Context: During our testing, disbursements were not reported to COD within the required 15 days or had incorrect disbursement dates. Cause: The University had errors within their batch process reports used when reporting to COD. Effect: Interest accrues based on disbursement date reported to COD, thus interest calculation could be skewed due to the discrepancy in disbursement dates and amounts reported. Repeat finding: Yes, 2023-004. Recommendation: We recommend the University evaluate its procedures and policies around reporting to the COD to ensure that student information is reported accurately and timely. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Education Federal Program Name: Federal Pell Grant Program; Federal Direct Student Loans Assistance Listing Number: 84.063; 84.268 Federal Award Identification Number and Year: P063P241812; P063Q231812; P268K251812 - 2024 Award Period: July 01, 2023 – June 30, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: The Department of Education requires institutions to report the disbursement dates and amounts to the Common Origination and Disbursement (COD) system within 15 days of disbursing Pell and Direct Loan funds to a student (34 CFR 690.83(b)(2) and 34 CFR 685.309). Condition: During our testing of 40 disbursements, we noted the following: • 4 disbursement dates were incorrectly reported to COD • 8 disbursements were not reported to COD in a timely manner Questioned costs: None. Context: During our testing, disbursements were not reported to COD within the required 15 days or had incorrect disbursement dates. Cause: The University had errors within their batch process reports used when reporting to COD. Effect: Interest accrues based on disbursement date reported to COD, thus interest calculation could be skewed due to the discrepancy in disbursement dates and amounts reported. Repeat finding: Yes, 2023-004. Recommendation: We recommend the University evaluate its procedures and policies around reporting to the COD to ensure that student information is reported accurately and timely. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Education Federal Program Name: Federal Supplemental Educational Opportunity Grants; Federal Work Study Program; Federal Pell Grant Program; Federal Direct Student Loans Assistance Listing Number: 84.007; 84.033; 84.063; 84.268 Federal Award Identification Number and Year: P007A242562; P033A242562; P063P241812; P063Q231812; P268K251812 - 2024 Award Period: July 01, 2023 – June 30, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: The Code of Federal Regulations, 34 CFR 668.164e states, “Whenever an institution disburses Title IV, HEA program funds by crediting a student’s account and the total of all title IV, HEA program funds credited exceeds the amount of tuition and fees, room and board, and other authorized charges the institution assessed the student, the institution must pay the resulting credit balance directly to the student or parent as soon as possible but – (1) No later than 14 days after the balance occurred if the credit balance occurred after the first day of class of a payment period; or (2) No mater than 14 days after the first day of class of a payment period if the credit balance occurred on or before the first day of class of that payment period. Condition: Student Title IV credit balances were not refunded within the required 14-day time frame. Questioned costs: None. Context: During our testing, 7 students out of a sample of 40 had a credit balance because of receiving Title IV aid that was not returned within the required 14-day timeframe. Cause: Process and controls in place for ensuring timely return of credit balances were not functioning properly. Effect: The University did not refund Title IV credit balances within 14 days as required by the Department of Education. Repeat finding: No. Recommendation: We recommend the University evaluate its procedures and review policies in overseeing student credit balances to ensure credit balances are returned within the required 14 day timeframe. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Education Federal Program Name: Federal Supplemental Educational Opportunity Grants; Federal Work Study Program; Federal Pell Grant Program; Federal Direct Student Loans Assistance Listing Number: 84.007; 84.033; 84.063; 84.268 Federal Award Identification Number and Year: P007A242562; P033A242562; P063P241812; P063Q231812; P268K251812 - 2024 Award Period: July 01, 2023 – June 30, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: The Code of Federal Regulations, 34 CFR 668.164e states, “Whenever an institution disburses Title IV, HEA program funds by crediting a student’s account and the total of all title IV, HEA program funds credited exceeds the amount of tuition and fees, room and board, and other authorized charges the institution assessed the student, the institution must pay the resulting credit balance directly to the student or parent as soon as possible but – (1) No later than 14 days after the balance occurred if the credit balance occurred after the first day of class of a payment period; or (2) No mater than 14 days after the first day of class of a payment period if the credit balance occurred on or before the first day of class of that payment period. Condition: Student Title IV credit balances were not refunded within the required 14-day time frame. Questioned costs: None. Context: During our testing, 7 students out of a sample of 40 had a credit balance because of receiving Title IV aid that was not returned within the required 14-day timeframe. Cause: Process and controls in place for ensuring timely return of credit balances were not functioning properly. Effect: The University did not refund Title IV credit balances within 14 days as required by the Department of Education. Repeat finding: No. Recommendation: We recommend the University evaluate its procedures and review policies in overseeing student credit balances to ensure credit balances are returned within the required 14 day timeframe. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Education Federal Program Name: Federal Supplemental Educational Opportunity Grants; Federal Work Study Program; Federal Pell Grant Program; Federal Direct Student Loans Assistance Listing Number: 84.007; 84.033; 84.063; 84.268 Federal Award Identification Number and Year: P007A242562; P033A242562; P063P241812; P063Q231812; P268K251812 - 2024 Award Period: July 01, 2023 – June 30, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: The Code of Federal Regulations, 34 CFR 668.164e states, “Whenever an institution disburses Title IV, HEA program funds by crediting a student’s account and the total of all title IV, HEA program funds credited exceeds the amount of tuition and fees, room and board, and other authorized charges the institution assessed the student, the institution must pay the resulting credit balance directly to the student or parent as soon as possible but – (1) No later than 14 days after the balance occurred if the credit balance occurred after the first day of class of a payment period; or (2) No mater than 14 days after the first day of class of a payment period if the credit balance occurred on or before the first day of class of that payment period. Condition: Student Title IV credit balances were not refunded within the required 14-day time frame. Questioned costs: None. Context: During our testing, 7 students out of a sample of 40 had a credit balance because of receiving Title IV aid that was not returned within the required 14-day timeframe. Cause: Process and controls in place for ensuring timely return of credit balances were not functioning properly. Effect: The University did not refund Title IV credit balances within 14 days as required by the Department of Education. Repeat finding: No. Recommendation: We recommend the University evaluate its procedures and review policies in overseeing student credit balances to ensure credit balances are returned within the required 14 day timeframe. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Education Federal Program Name: Federal Supplemental Educational Opportunity Grants; Federal Work Study Program; Federal Pell Grant Program; Federal Direct Student Loans Assistance Listing Number: 84.007; 84.033; 84.063; 84.268 Federal Award Identification Number and Year: P007A242562; P033A242562; P063P241812; P063Q231812; P268K251812 - 2024 Award Period: July 01, 2023 – June 30, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: The Code of Federal Regulations, 34 CFR 668.164e states, “Whenever an institution disburses Title IV, HEA program funds by crediting a student’s account and the total of all title IV, HEA program funds credited exceeds the amount of tuition and fees, room and board, and other authorized charges the institution assessed the student, the institution must pay the resulting credit balance directly to the student or parent as soon as possible but – (1) No later than 14 days after the balance occurred if the credit balance occurred after the first day of class of a payment period; or (2) No mater than 14 days after the first day of class of a payment period if the credit balance occurred on or before the first day of class of that payment period. Condition: Student Title IV credit balances were not refunded within the required 14-day time frame. Questioned costs: None. Context: During our testing, 7 students out of a sample of 40 had a credit balance because of receiving Title IV aid that was not returned within the required 14-day timeframe. Cause: Process and controls in place for ensuring timely return of credit balances were not functioning properly. Effect: The University did not refund Title IV credit balances within 14 days as required by the Department of Education. Repeat finding: No. Recommendation: We recommend the University evaluate its procedures and review policies in overseeing student credit balances to ensure credit balances are returned within the required 14 day timeframe. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Education Federal Program Name: Federal Supplemental Educational Opportunity Grants; Federal Work Study Program; Federal Pell Grant Program; Federal Direct Student Loans Assistance Listing Number: 84.007; 84.033; 84.063; 84.268 Federal Award Identification Number and Year: P007A242562; P033A242562; P063P241812; P063Q231812; P268K251812 - 2024 Award Period: July 01, 2023 - June 30, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: Once a student’s withdrawal date is determined, a school needs to calculate the percentage of the payment period of enrollment completed. Institutionally scheduled breaks of five or more consecutive days are excluded from the R2T4 calculation as periods of nonattendance and, therefore, do not affect the calculation of the amount of Federal Student Aid earned (34 CFR 668.22(f)(2)(i)). The Code of Federal Regulations, 34 CFR 668.22 defines the last date of attendance for schools that are required to take attendance and those that are not required. Condition: During our testing, we observed that the University's process failed to properly account for scheduled breaks in the R2T4 calculations for two students. Additionally, an incorrect withdrawal date was used in one student's R2T4 calculation. Questioned costs: $3,370 Context: During our testing of 22 students, we identified two instances where the University's R2T4 calculations did not correctly factor in scheduled breaks. Additionally, one student's R2T4 calculation was performed using an incorrect withdrawal date. Cause: The University did not have a review process in place to ensure scheduled breaks were properly factored into the R2T4 calculations or that the correct withdrawal date was used. Effect: The University is not performing an accurate R2T4 calculation in accordance with Department of Education guidelines. Repeat finding: No. Recommendation: We recommend that the University review the R2T4 requirements and implement procedures to ensure that scheduled breaks and correct withdrawal dates are properly factored into the calculations. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Education Federal Program Name: Federal Supplemental Educational Opportunity Grants; Federal Work Study Program; Federal Pell Grant Program; Federal Direct Student Loans Assistance Listing Number: 84.007; 84.033; 84.063; 84.268 Federal Award Identification Number and Year: P007A242562; P033A242562; P063P241812; P063Q231812; P268K251812 - 2024 Award Period: July 01, 2023 - June 30, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: Once a student’s withdrawal date is determined, a school needs to calculate the percentage of the payment period of enrollment completed. Institutionally scheduled breaks of five or more consecutive days are excluded from the R2T4 calculation as periods of nonattendance and, therefore, do not affect the calculation of the amount of Federal Student Aid earned (34 CFR 668.22(f)(2)(i)). The Code of Federal Regulations, 34 CFR 668.22 defines the last date of attendance for schools that are required to take attendance and those that are not required. Condition: During our testing, we observed that the University's process failed to properly account for scheduled breaks in the R2T4 calculations for two students. Additionally, an incorrect withdrawal date was used in one student's R2T4 calculation. Questioned costs: $3,370 Context: During our testing of 22 students, we identified two instances where the University's R2T4 calculations did not correctly factor in scheduled breaks. Additionally, one student's R2T4 calculation was performed using an incorrect withdrawal date. Cause: The University did not have a review process in place to ensure scheduled breaks were properly factored into the R2T4 calculations or that the correct withdrawal date was used. Effect: The University is not performing an accurate R2T4 calculation in accordance with Department of Education guidelines. Repeat finding: No. Recommendation: We recommend that the University review the R2T4 requirements and implement procedures to ensure that scheduled breaks and correct withdrawal dates are properly factored into the calculations. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Education Federal Program Name: Federal Supplemental Educational Opportunity Grants; Federal Work Study Program; Federal Pell Grant Program; Federal Direct Student Loans Assistance Listing Number: 84.007; 84.033; 84.063; 84.268 Federal Award Identification Number and Year: P007A242562; P033A242562; P063P241812; P063Q231812; P268K251812 - 2024 Award Period: July 01, 2023 - June 30, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: Once a student’s withdrawal date is determined, a school needs to calculate the percentage of the payment period of enrollment completed. Institutionally scheduled breaks of five or more consecutive days are excluded from the R2T4 calculation as periods of nonattendance and, therefore, do not affect the calculation of the amount of Federal Student Aid earned (34 CFR 668.22(f)(2)(i)). The Code of Federal Regulations, 34 CFR 668.22 defines the last date of attendance for schools that are required to take attendance and those that are not required. Condition: During our testing, we observed that the University's process failed to properly account for scheduled breaks in the R2T4 calculations for two students. Additionally, an incorrect withdrawal date was used in one student's R2T4 calculation. Questioned costs: $3,370 Context: During our testing of 22 students, we identified two instances where the University's R2T4 calculations did not correctly factor in scheduled breaks. Additionally, one student's R2T4 calculation was performed using an incorrect withdrawal date. Cause: The University did not have a review process in place to ensure scheduled breaks were properly factored into the R2T4 calculations or that the correct withdrawal date was used. Effect: The University is not performing an accurate R2T4 calculation in accordance with Department of Education guidelines. Repeat finding: No. Recommendation: We recommend that the University review the R2T4 requirements and implement procedures to ensure that scheduled breaks and correct withdrawal dates are properly factored into the calculations. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Education Federal Program Name: Federal Supplemental Educational Opportunity Grants; Federal Work Study Program; Federal Pell Grant Program; Federal Direct Student Loans Assistance Listing Number: 84.007; 84.033; 84.063; 84.268 Federal Award Identification Number and Year: P007A242562; P033A242562; P063P241812; P063Q231812; P268K251812 - 2024 Award Period: July 01, 2023 - June 30, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: Once a student’s withdrawal date is determined, a school needs to calculate the percentage of the payment period of enrollment completed. Institutionally scheduled breaks of five or more consecutive days are excluded from the R2T4 calculation as periods of nonattendance and, therefore, do not affect the calculation of the amount of Federal Student Aid earned (34 CFR 668.22(f)(2)(i)). The Code of Federal Regulations, 34 CFR 668.22 defines the last date of attendance for schools that are required to take attendance and those that are not required. Condition: During our testing, we observed that the University's process failed to properly account for scheduled breaks in the R2T4 calculations for two students. Additionally, an incorrect withdrawal date was used in one student's R2T4 calculation. Questioned costs: $3,370 Context: During our testing of 22 students, we identified two instances where the University's R2T4 calculations did not correctly factor in scheduled breaks. Additionally, one student's R2T4 calculation was performed using an incorrect withdrawal date. Cause: The University did not have a review process in place to ensure scheduled breaks were properly factored into the R2T4 calculations or that the correct withdrawal date was used. Effect: The University is not performing an accurate R2T4 calculation in accordance with Department of Education guidelines. Repeat finding: No. Recommendation: We recommend that the University review the R2T4 requirements and implement procedures to ensure that scheduled breaks and correct withdrawal dates are properly factored into the calculations. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Education Federal Program Name: Minority Serving Institutions and Higher Education Institutional Aid – Fostering Inclusive Excellence for STEM Achievement Assistance Listing Number: 84.031C Federal Award Identification Number and Year: P031C210072 - 2024 Award Period: July 01, 2023 - June 30, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: The Uniform Administrative Guidance, Cost Principals, and Requirements for Federal Awards (Uniform Guidance) became effective for grants or incremental funding made on or after December 26, 2014. Entities are now required to have written policies and procedures in place over certain compliance requirements. Compliance requirements that have been significantly affected due to the changes in Uniform Guidance include allowable costs, procurement, and subrecipient monitoring. Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. When a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. Condition: The University had not consistently performed requirements for procurement and suspension and debarment as outlined in the Uniform Guidance. Questioned costs: None. Context: The University had not implemented formal, written policies and procedures to align with the Uniform Guidance requirements for procurement and suspension and debarment. Cause: The University does not have a formal written policy and procedures to align with the Uniform Guidance requirements for procurement and suspension and debarment. Effect: Procurements are not being made, and suspension and debarment of vendors is not being checked in accordance with the Uniform Guidance. Repeat finding: Yes, 2023-001. Recommendation: We recommend the University document and implement policies and procedures that are aligned with Uniform Guidance for procurement and suspension and debarment to ensure the University is following requirements. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: Department of Commerce Federal Program Name: Connecting Minority Communities Pilot Program Assistance Listing Number: 11.028 Federal Award Identification Number and Year: 3409C13052 - 2024 Award Period: July 01, 2023 - June 30, 2024 Type of Finding: • Material Weakness in Internal Control over Compliance, Other Matters Criteria or specific requirement: In accordance with 47 CFR 302.9, each grant recipient shall submit semi-annual and annual performance reports to National Telecommunications and Information Administration (NTIA), following the procedures of 2 CFR 200.329. Condition: During our review of the performance reports submitted for fiscal year 2024, we identified inaccuracies in the reported dollar amounts of expenditures for the period. The key line items affected were 3a, 5a, 5d, and 8a through 8k. Questioned costs: None. Context: During our testing of the 2 performance reports, it was noted that: • 1 of the performance reports reflected budgeted amounts instead of actual expenditures for the period submitted for lines 3a, 5a, and 5d • 1 of the performance reports reflected budgeted amounts instead of actual expenditures for the period submitted for lines 3a, 5a, and 5d and lines 8a through 8k reflected the incorrect period of the report Cause: The University had not implemented formal, written policies and procedures to align with the Uniform Guidance requirements for procurement and suspension and debarment. Effect: The University did not report accurate information on performance reports submitted during the year. Repeat finding: No. Recommendation: We recommend the University review its procedures around completing and reviewing performance reports. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Education Federal Program Name: Federal Pell Grant Program; Federal Direct Student Loans Assistance Listing Number: 84.063; 84.268 Federal Award Identification Number and Year: P063P241812; P063Q231812; P268K251812 – 2024 Award Period: July 01, 2023 – June 30, 2024 Type of Finding: • Material Weakness in Internal Control over Compliance, Material Noncompliance (Modified Opinion) Criteria or specific requirement: Per U.S. Department of Education (ED) regulations, all schools participating (or approved to participate) in the Federal Student Aid programs must have an arrangement to report student enrollment data to the National Student Loan Data System (NSLDS) through a roster file. The school is required to report enrollment status at both the school and program level. The school is required to report changes in the student’s enrollment status, the effective date of the status and an anticipated completion date. An academic program is defined as the combination of the school’s Office of Postsecondary Education Identification (OPEID) number and the program’s Classification of Instructional Program (CIP) code, credential level, and published program length. ED requires the University to report changes in enrollment status and indicate the date that the changes occurred (34 CFR 685.309). Changes in enrollment status must be reported within 30 days. However, if a roster file is expected within 60 days, you may provide the date on that roster file. In addition, regulations require that an institution make necessary corrections and return the records within 10 days for any roster files that don’t pass the NSLDS enrollment reporting edits. ED requires the University to report changes in enrollment status within 30 or 60 days that the University determined the changes occurred (34 CFR 682.610). Condition: Certain students’ enrollment information was not accurately or timely reported to the NSLDS. Questioned costs: None. Context: During our testing of enrollment information at both the program and campus-level detail, we noted the following: • 4 out of 60 students were never reported to the NSLDS • 20 out of 60 students’ change in status were not reported timely to the NSLDS • 3 out of 60 students’ enrollment status were not being certified at least every 60 days within the NSLDS • 12 out of 60 students’ program begin dates were reported incorrectly to the NSLDS • 2 out of 60 students were reported to the NSLDS with an incorrect enrollment status per campus-level records • 3 out of 60 students were reported to the NSLDS with an incorrect effective date per campus-level records • 3 out of 60 students were reported to the NSLDS with an incorrect enrollment status per program-level records • 5 out of 60 students were reported to the NSLDS with an incorrect effective date per program-level records Cause: The University uses a third-party servicer to submit their enrollment reports to the NSLDS. The enrollment information that was sent to the third-party servicer did not have enrollment information that followed the NSLDS guidelines. Effect: Inaccurate reporting to the NSLDS can result in incorrect determination of when the students’ grace period should begin. Repeat finding: Yes, 2023-003. Recommendation: We recommend the University evaluate its procedures and review regulations set by the Department of Education around NSLDS to ensure the University understands the definitions for each enrollment information that gets reported. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Education Federal Program Name: Federal Pell Grant Program; Federal Direct Student Loans Assistance Listing Number: 84.063; 84.268 Federal Award Identification Number and Year: P063P241812; P063Q231812; P268K251812 – 2024 Award Period: July 01, 2023 – June 30, 2024 Type of Finding: • Material Weakness in Internal Control over Compliance, Material Noncompliance (Modified Opinion) Criteria or specific requirement: Per U.S. Department of Education (ED) regulations, all schools participating (or approved to participate) in the Federal Student Aid programs must have an arrangement to report student enrollment data to the National Student Loan Data System (NSLDS) through a roster file. The school is required to report enrollment status at both the school and program level. The school is required to report changes in the student’s enrollment status, the effective date of the status and an anticipated completion date. An academic program is defined as the combination of the school’s Office of Postsecondary Education Identification (OPEID) number and the program’s Classification of Instructional Program (CIP) code, credential level, and published program length. ED requires the University to report changes in enrollment status and indicate the date that the changes occurred (34 CFR 685.309). Changes in enrollment status must be reported within 30 days. However, if a roster file is expected within 60 days, you may provide the date on that roster file. In addition, regulations require that an institution make necessary corrections and return the records within 10 days for any roster files that don’t pass the NSLDS enrollment reporting edits. ED requires the University to report changes in enrollment status within 30 or 60 days that the University determined the changes occurred (34 CFR 682.610). Condition: Certain students’ enrollment information was not accurately or timely reported to the NSLDS. Questioned costs: None. Context: During our testing of enrollment information at both the program and campus-level detail, we noted the following: • 4 out of 60 students were never reported to the NSLDS • 20 out of 60 students’ change in status were not reported timely to the NSLDS • 3 out of 60 students’ enrollment status were not being certified at least every 60 days within the NSLDS • 12 out of 60 students’ program begin dates were reported incorrectly to the NSLDS • 2 out of 60 students were reported to the NSLDS with an incorrect enrollment status per campus-level records • 3 out of 60 students were reported to the NSLDS with an incorrect effective date per campus-level records • 3 out of 60 students were reported to the NSLDS with an incorrect enrollment status per program-level records • 5 out of 60 students were reported to the NSLDS with an incorrect effective date per program-level records Cause: The University uses a third-party servicer to submit their enrollment reports to the NSLDS. The enrollment information that was sent to the third-party servicer did not have enrollment information that followed the NSLDS guidelines. Effect: Inaccurate reporting to the NSLDS can result in incorrect determination of when the students’ grace period should begin. Repeat finding: Yes, 2023-003. Recommendation: We recommend the University evaluate its procedures and review regulations set by the Department of Education around NSLDS to ensure the University understands the definitions for each enrollment information that gets reported. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Education Federal Program Name: Federal Pell Grant Program; Federal Direct Student Loans Assistance Listing Number: 84.063; 84.268 Federal Award Identification Number and Year: P063P241812; P063Q231812; P268K251812 - 2024 Award Period: July 01, 2023 – June 30, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: The Department of Education requires institutions to report the disbursement dates and amounts to the Common Origination and Disbursement (COD) system within 15 days of disbursing Pell and Direct Loan funds to a student (34 CFR 690.83(b)(2) and 34 CFR 685.309). Condition: During our testing of 40 disbursements, we noted the following: • 4 disbursement dates were incorrectly reported to COD • 8 disbursements were not reported to COD in a timely manner Questioned costs: None. Context: During our testing, disbursements were not reported to COD within the required 15 days or had incorrect disbursement dates. Cause: The University had errors within their batch process reports used when reporting to COD. Effect: Interest accrues based on disbursement date reported to COD, thus interest calculation could be skewed due to the discrepancy in disbursement dates and amounts reported. Repeat finding: Yes, 2023-004. Recommendation: We recommend the University evaluate its procedures and policies around reporting to the COD to ensure that student information is reported accurately and timely. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Education Federal Program Name: Federal Pell Grant Program; Federal Direct Student Loans Assistance Listing Number: 84.063; 84.268 Federal Award Identification Number and Year: P063P241812; P063Q231812; P268K251812 - 2024 Award Period: July 01, 2023 – June 30, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: The Department of Education requires institutions to report the disbursement dates and amounts to the Common Origination and Disbursement (COD) system within 15 days of disbursing Pell and Direct Loan funds to a student (34 CFR 690.83(b)(2) and 34 CFR 685.309). Condition: During our testing of 40 disbursements, we noted the following: • 4 disbursement dates were incorrectly reported to COD • 8 disbursements were not reported to COD in a timely manner Questioned costs: None. Context: During our testing, disbursements were not reported to COD within the required 15 days or had incorrect disbursement dates. Cause: The University had errors within their batch process reports used when reporting to COD. Effect: Interest accrues based on disbursement date reported to COD, thus interest calculation could be skewed due to the discrepancy in disbursement dates and amounts reported. Repeat finding: Yes, 2023-004. Recommendation: We recommend the University evaluate its procedures and policies around reporting to the COD to ensure that student information is reported accurately and timely. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Education Federal Program Name: Federal Supplemental Educational Opportunity Grants; Federal Work Study Program; Federal Pell Grant Program; Federal Direct Student Loans Assistance Listing Number: 84.007; 84.033; 84.063; 84.268 Federal Award Identification Number and Year: P007A242562; P033A242562; P063P241812; P063Q231812; P268K251812 - 2024 Award Period: July 01, 2023 – June 30, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: The Code of Federal Regulations, 34 CFR 668.164e states, “Whenever an institution disburses Title IV, HEA program funds by crediting a student’s account and the total of all title IV, HEA program funds credited exceeds the amount of tuition and fees, room and board, and other authorized charges the institution assessed the student, the institution must pay the resulting credit balance directly to the student or parent as soon as possible but – (1) No later than 14 days after the balance occurred if the credit balance occurred after the first day of class of a payment period; or (2) No mater than 14 days after the first day of class of a payment period if the credit balance occurred on or before the first day of class of that payment period. Condition: Student Title IV credit balances were not refunded within the required 14-day time frame. Questioned costs: None. Context: During our testing, 7 students out of a sample of 40 had a credit balance because of receiving Title IV aid that was not returned within the required 14-day timeframe. Cause: Process and controls in place for ensuring timely return of credit balances were not functioning properly. Effect: The University did not refund Title IV credit balances within 14 days as required by the Department of Education. Repeat finding: No. Recommendation: We recommend the University evaluate its procedures and review policies in overseeing student credit balances to ensure credit balances are returned within the required 14 day timeframe. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Education Federal Program Name: Federal Supplemental Educational Opportunity Grants; Federal Work Study Program; Federal Pell Grant Program; Federal Direct Student Loans Assistance Listing Number: 84.007; 84.033; 84.063; 84.268 Federal Award Identification Number and Year: P007A242562; P033A242562; P063P241812; P063Q231812; P268K251812 - 2024 Award Period: July 01, 2023 – June 30, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: The Code of Federal Regulations, 34 CFR 668.164e states, “Whenever an institution disburses Title IV, HEA program funds by crediting a student’s account and the total of all title IV, HEA program funds credited exceeds the amount of tuition and fees, room and board, and other authorized charges the institution assessed the student, the institution must pay the resulting credit balance directly to the student or parent as soon as possible but – (1) No later than 14 days after the balance occurred if the credit balance occurred after the first day of class of a payment period; or (2) No mater than 14 days after the first day of class of a payment period if the credit balance occurred on or before the first day of class of that payment period. Condition: Student Title IV credit balances were not refunded within the required 14-day time frame. Questioned costs: None. Context: During our testing, 7 students out of a sample of 40 had a credit balance because of receiving Title IV aid that was not returned within the required 14-day timeframe. Cause: Process and controls in place for ensuring timely return of credit balances were not functioning properly. Effect: The University did not refund Title IV credit balances within 14 days as required by the Department of Education. Repeat finding: No. Recommendation: We recommend the University evaluate its procedures and review policies in overseeing student credit balances to ensure credit balances are returned within the required 14 day timeframe. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Education Federal Program Name: Federal Supplemental Educational Opportunity Grants; Federal Work Study Program; Federal Pell Grant Program; Federal Direct Student Loans Assistance Listing Number: 84.007; 84.033; 84.063; 84.268 Federal Award Identification Number and Year: P007A242562; P033A242562; P063P241812; P063Q231812; P268K251812 - 2024 Award Period: July 01, 2023 – June 30, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: The Code of Federal Regulations, 34 CFR 668.164e states, “Whenever an institution disburses Title IV, HEA program funds by crediting a student’s account and the total of all title IV, HEA program funds credited exceeds the amount of tuition and fees, room and board, and other authorized charges the institution assessed the student, the institution must pay the resulting credit balance directly to the student or parent as soon as possible but – (1) No later than 14 days after the balance occurred if the credit balance occurred after the first day of class of a payment period; or (2) No mater than 14 days after the first day of class of a payment period if the credit balance occurred on or before the first day of class of that payment period. Condition: Student Title IV credit balances were not refunded within the required 14-day time frame. Questioned costs: None. Context: During our testing, 7 students out of a sample of 40 had a credit balance because of receiving Title IV aid that was not returned within the required 14-day timeframe. Cause: Process and controls in place for ensuring timely return of credit balances were not functioning properly. Effect: The University did not refund Title IV credit balances within 14 days as required by the Department of Education. Repeat finding: No. Recommendation: We recommend the University evaluate its procedures and review policies in overseeing student credit balances to ensure credit balances are returned within the required 14 day timeframe. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Education Federal Program Name: Federal Supplemental Educational Opportunity Grants; Federal Work Study Program; Federal Pell Grant Program; Federal Direct Student Loans Assistance Listing Number: 84.007; 84.033; 84.063; 84.268 Federal Award Identification Number and Year: P007A242562; P033A242562; P063P241812; P063Q231812; P268K251812 - 2024 Award Period: July 01, 2023 – June 30, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: The Code of Federal Regulations, 34 CFR 668.164e states, “Whenever an institution disburses Title IV, HEA program funds by crediting a student’s account and the total of all title IV, HEA program funds credited exceeds the amount of tuition and fees, room and board, and other authorized charges the institution assessed the student, the institution must pay the resulting credit balance directly to the student or parent as soon as possible but – (1) No later than 14 days after the balance occurred if the credit balance occurred after the first day of class of a payment period; or (2) No mater than 14 days after the first day of class of a payment period if the credit balance occurred on or before the first day of class of that payment period. Condition: Student Title IV credit balances were not refunded within the required 14-day time frame. Questioned costs: None. Context: During our testing, 7 students out of a sample of 40 had a credit balance because of receiving Title IV aid that was not returned within the required 14-day timeframe. Cause: Process and controls in place for ensuring timely return of credit balances were not functioning properly. Effect: The University did not refund Title IV credit balances within 14 days as required by the Department of Education. Repeat finding: No. Recommendation: We recommend the University evaluate its procedures and review policies in overseeing student credit balances to ensure credit balances are returned within the required 14 day timeframe. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Education Federal Program Name: Federal Supplemental Educational Opportunity Grants; Federal Work Study Program; Federal Pell Grant Program; Federal Direct Student Loans Assistance Listing Number: 84.007; 84.033; 84.063; 84.268 Federal Award Identification Number and Year: P007A242562; P033A242562; P063P241812; P063Q231812; P268K251812 - 2024 Award Period: July 01, 2023 - June 30, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: Once a student’s withdrawal date is determined, a school needs to calculate the percentage of the payment period of enrollment completed. Institutionally scheduled breaks of five or more consecutive days are excluded from the R2T4 calculation as periods of nonattendance and, therefore, do not affect the calculation of the amount of Federal Student Aid earned (34 CFR 668.22(f)(2)(i)). The Code of Federal Regulations, 34 CFR 668.22 defines the last date of attendance for schools that are required to take attendance and those that are not required. Condition: During our testing, we observed that the University's process failed to properly account for scheduled breaks in the R2T4 calculations for two students. Additionally, an incorrect withdrawal date was used in one student's R2T4 calculation. Questioned costs: $3,370 Context: During our testing of 22 students, we identified two instances where the University's R2T4 calculations did not correctly factor in scheduled breaks. Additionally, one student's R2T4 calculation was performed using an incorrect withdrawal date. Cause: The University did not have a review process in place to ensure scheduled breaks were properly factored into the R2T4 calculations or that the correct withdrawal date was used. Effect: The University is not performing an accurate R2T4 calculation in accordance with Department of Education guidelines. Repeat finding: No. Recommendation: We recommend that the University review the R2T4 requirements and implement procedures to ensure that scheduled breaks and correct withdrawal dates are properly factored into the calculations. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Education Federal Program Name: Federal Supplemental Educational Opportunity Grants; Federal Work Study Program; Federal Pell Grant Program; Federal Direct Student Loans Assistance Listing Number: 84.007; 84.033; 84.063; 84.268 Federal Award Identification Number and Year: P007A242562; P033A242562; P063P241812; P063Q231812; P268K251812 - 2024 Award Period: July 01, 2023 - June 30, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: Once a student’s withdrawal date is determined, a school needs to calculate the percentage of the payment period of enrollment completed. Institutionally scheduled breaks of five or more consecutive days are excluded from the R2T4 calculation as periods of nonattendance and, therefore, do not affect the calculation of the amount of Federal Student Aid earned (34 CFR 668.22(f)(2)(i)). The Code of Federal Regulations, 34 CFR 668.22 defines the last date of attendance for schools that are required to take attendance and those that are not required. Condition: During our testing, we observed that the University's process failed to properly account for scheduled breaks in the R2T4 calculations for two students. Additionally, an incorrect withdrawal date was used in one student's R2T4 calculation. Questioned costs: $3,370 Context: During our testing of 22 students, we identified two instances where the University's R2T4 calculations did not correctly factor in scheduled breaks. Additionally, one student's R2T4 calculation was performed using an incorrect withdrawal date. Cause: The University did not have a review process in place to ensure scheduled breaks were properly factored into the R2T4 calculations or that the correct withdrawal date was used. Effect: The University is not performing an accurate R2T4 calculation in accordance with Department of Education guidelines. Repeat finding: No. Recommendation: We recommend that the University review the R2T4 requirements and implement procedures to ensure that scheduled breaks and correct withdrawal dates are properly factored into the calculations. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Education Federal Program Name: Federal Supplemental Educational Opportunity Grants; Federal Work Study Program; Federal Pell Grant Program; Federal Direct Student Loans Assistance Listing Number: 84.007; 84.033; 84.063; 84.268 Federal Award Identification Number and Year: P007A242562; P033A242562; P063P241812; P063Q231812; P268K251812 - 2024 Award Period: July 01, 2023 - June 30, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: Once a student’s withdrawal date is determined, a school needs to calculate the percentage of the payment period of enrollment completed. Institutionally scheduled breaks of five or more consecutive days are excluded from the R2T4 calculation as periods of nonattendance and, therefore, do not affect the calculation of the amount of Federal Student Aid earned (34 CFR 668.22(f)(2)(i)). The Code of Federal Regulations, 34 CFR 668.22 defines the last date of attendance for schools that are required to take attendance and those that are not required. Condition: During our testing, we observed that the University's process failed to properly account for scheduled breaks in the R2T4 calculations for two students. Additionally, an incorrect withdrawal date was used in one student's R2T4 calculation. Questioned costs: $3,370 Context: During our testing of 22 students, we identified two instances where the University's R2T4 calculations did not correctly factor in scheduled breaks. Additionally, one student's R2T4 calculation was performed using an incorrect withdrawal date. Cause: The University did not have a review process in place to ensure scheduled breaks were properly factored into the R2T4 calculations or that the correct withdrawal date was used. Effect: The University is not performing an accurate R2T4 calculation in accordance with Department of Education guidelines. Repeat finding: No. Recommendation: We recommend that the University review the R2T4 requirements and implement procedures to ensure that scheduled breaks and correct withdrawal dates are properly factored into the calculations. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Education Federal Program Name: Federal Supplemental Educational Opportunity Grants; Federal Work Study Program; Federal Pell Grant Program; Federal Direct Student Loans Assistance Listing Number: 84.007; 84.033; 84.063; 84.268 Federal Award Identification Number and Year: P007A242562; P033A242562; P063P241812; P063Q231812; P268K251812 - 2024 Award Period: July 01, 2023 - June 30, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: Once a student’s withdrawal date is determined, a school needs to calculate the percentage of the payment period of enrollment completed. Institutionally scheduled breaks of five or more consecutive days are excluded from the R2T4 calculation as periods of nonattendance and, therefore, do not affect the calculation of the amount of Federal Student Aid earned (34 CFR 668.22(f)(2)(i)). The Code of Federal Regulations, 34 CFR 668.22 defines the last date of attendance for schools that are required to take attendance and those that are not required. Condition: During our testing, we observed that the University's process failed to properly account for scheduled breaks in the R2T4 calculations for two students. Additionally, an incorrect withdrawal date was used in one student's R2T4 calculation. Questioned costs: $3,370 Context: During our testing of 22 students, we identified two instances where the University's R2T4 calculations did not correctly factor in scheduled breaks. Additionally, one student's R2T4 calculation was performed using an incorrect withdrawal date. Cause: The University did not have a review process in place to ensure scheduled breaks were properly factored into the R2T4 calculations or that the correct withdrawal date was used. Effect: The University is not performing an accurate R2T4 calculation in accordance with Department of Education guidelines. Repeat finding: No. Recommendation: We recommend that the University review the R2T4 requirements and implement procedures to ensure that scheduled breaks and correct withdrawal dates are properly factored into the calculations. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Education Federal Program Name: Minority Serving Institutions and Higher Education Institutional Aid – Fostering Inclusive Excellence for STEM Achievement Assistance Listing Number: 84.031C Federal Award Identification Number and Year: P031C210072 - 2024 Award Period: July 01, 2023 - June 30, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: The Uniform Administrative Guidance, Cost Principals, and Requirements for Federal Awards (Uniform Guidance) became effective for grants or incremental funding made on or after December 26, 2014. Entities are now required to have written policies and procedures in place over certain compliance requirements. Compliance requirements that have been significantly affected due to the changes in Uniform Guidance include allowable costs, procurement, and subrecipient monitoring. Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. When a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. Condition: The University had not consistently performed requirements for procurement and suspension and debarment as outlined in the Uniform Guidance. Questioned costs: None. Context: The University had not implemented formal, written policies and procedures to align with the Uniform Guidance requirements for procurement and suspension and debarment. Cause: The University does not have a formal written policy and procedures to align with the Uniform Guidance requirements for procurement and suspension and debarment. Effect: Procurements are not being made, and suspension and debarment of vendors is not being checked in accordance with the Uniform Guidance. Repeat finding: Yes, 2023-001. Recommendation: We recommend the University document and implement policies and procedures that are aligned with Uniform Guidance for procurement and suspension and debarment to ensure the University is following requirements. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: Department of Commerce Federal Program Name: Connecting Minority Communities Pilot Program Assistance Listing Number: 11.028 Federal Award Identification Number and Year: 3409C13052 - 2024 Award Period: July 01, 2023 - June 30, 2024 Type of Finding: • Material Weakness in Internal Control over Compliance, Other Matters Criteria or specific requirement: In accordance with 47 CFR 302.9, each grant recipient shall submit semi-annual and annual performance reports to National Telecommunications and Information Administration (NTIA), following the procedures of 2 CFR 200.329. Condition: During our review of the performance reports submitted for fiscal year 2024, we identified inaccuracies in the reported dollar amounts of expenditures for the period. The key line items affected were 3a, 5a, 5d, and 8a through 8k. Questioned costs: None. Context: During our testing of the 2 performance reports, it was noted that: • 1 of the performance reports reflected budgeted amounts instead of actual expenditures for the period submitted for lines 3a, 5a, and 5d • 1 of the performance reports reflected budgeted amounts instead of actual expenditures for the period submitted for lines 3a, 5a, and 5d and lines 8a through 8k reflected the incorrect period of the report Cause: The University had not implemented formal, written policies and procedures to align with the Uniform Guidance requirements for procurement and suspension and debarment. Effect: The University did not report accurate information on performance reports submitted during the year. Repeat finding: No. Recommendation: We recommend the University review its procedures around completing and reviewing performance reports. Views of responsible officials: There is no disagreement with the audit finding.