FAC Explorer

Audit 350366

FY End
2024-06-30
Total Expended
$7.74M
Findings
4
Programs
18
Organization: The Trustees of Davidson College (NC)
Year: 2024 Accepted: 2025-03-29
Auditor: Kpmg LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
540598 2024-001 Significant Deficiency - N
540599 2024-001 Significant Deficiency - N
1117040 2024-001 Significant Deficiency - N
1117041 2024-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $3.67M Yes 1
84.063 Federal Pell Grant Program $2.01M Yes 1
84.033 Federal Work-Study Program $286,335 Yes 0
84.007 Federal Supplemental Educational Opportunity Grants $216,007 Yes 0
93.859 Biomedical Research and Research Training $183,594 - 0
47.079 Office of International Science and Engineering $159,142 - 0
47.074 Biological Sciences $129,617 - 0
47.049 Mathematical and Physical Sciences $107,785 - 0
93.838 Lung Diseases Research $102,817 - 0
47.075 Social, Behavioral, and Economic Sciences $93,899 - 0
47.070 Computer and Information Science and Engineering $72,828 - 0
93.U02 Centers for Disease Control and Prevention $48,626 - 0
81.U01 Sandia National Laboratories $30,760 - 0
93.279 Drug Use and Addiction Research Programs $26,955 - 0
47.083 Integrative Activities $10,245 - 0
45.161 Promotion of the Humanities Research $8,870 - 0
10.310 Agriculture and Food Research Initiative (afri) $2,749 - 0
47.076 Stem Education (formerly Education and Human Resources) $1,348 - 0

Contacts

Name Title Type
MYR7QGXJF3J5 Lori Gaston Auditee
7048942208 Alison Upton Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activities of The Trustees of Davidson College (the College) and is presented on the accrual basis of accounting. The information in the 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). The accompanying schedule of expenditures of state awards includes state grant activities of the College and is presented on accrual basis of accounting. Therefore, some amounts presented in the schedules may differ from amounts presented in, or used in the preparation of, the basic financial statements.Expenditures for student financial aid programs include the federal share of students’ Federal Supplemental Educational Opportunity Grant (FSEOG) program grants and Federal Work Study (FWS) program earnings, certain other federal financial aid for students, North Carolina State Contractual Scholarship funds, and administrative cost allowances, where applicable. Expenditures for federal research and development programs are determined using the cost accounting principles and procedures set forth in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Under these cost principles, certain expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: For the year ended June 30, 2024, the College did not elect to apply the 10% De Minimus Indirect Cost Rate permitted by Uniform Guidance. The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activities of The Trustees of Davidson College (the College) and is presented on the accrual basis of accounting. The information in the 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). The accompanying schedule of expenditures of state awards includes state grant activities of the College and is presented on accrual basis of accounting. Therefore, some amounts presented in the schedules may differ from amounts presented in, or used in the preparation of, the basic financial statements.
Title: Summary of Significant Accounting Policies for Federal and State Award Expenditures Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activities of The Trustees of Davidson College (the College) and is presented on the accrual basis of accounting. The information in the 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). The accompanying schedule of expenditures of state awards includes state grant activities of the College and is presented on accrual basis of accounting. Therefore, some amounts presented in the schedules may differ from amounts presented in, or used in the preparation of, the basic financial statements.Expenditures for student financial aid programs include the federal share of students’ Federal Supplemental Educational Opportunity Grant (FSEOG) program grants and Federal Work Study (FWS) program earnings, certain other federal financial aid for students, North Carolina State Contractual Scholarship funds, and administrative cost allowances, where applicable. Expenditures for federal research and development programs are determined using the cost accounting principles and procedures set forth in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Under these cost principles, certain expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: For the year ended June 30, 2024, the College did not elect to apply the 10% De Minimus Indirect Cost Rate permitted by Uniform Guidance. Expenditures for student financial aid programs include the federal share of students’ Federal Supplemental Educational Opportunity Grant (FSEOG) program grants and Federal Work Study (FWS) program earnings, certain other federal financial aid for students, North Carolina State Contractual Scholarship funds, and administrative cost allowances, where applicable. Expenditures for federal research and development programs are determined using the cost accounting principles and procedures set forth in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Under these cost principles, certain expenditures are not allowable or are limited as to reimbursement. For the year ended June 30, 2024, the College did not elect to apply the 10% De Minimus Indirect Cost Rate permitted by Uniform Guidance.
Title: Federal Student Financial Aid Loan Programs Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activities of The Trustees of Davidson College (the College) and is presented on the accrual basis of accounting. The information in the 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). The accompanying schedule of expenditures of state awards includes state grant activities of the College and is presented on accrual basis of accounting. Therefore, some amounts presented in the schedules may differ from amounts presented in, or used in the preparation of, the basic financial statements.Expenditures for student financial aid programs include the federal share of students’ Federal Supplemental Educational Opportunity Grant (FSEOG) program grants and Federal Work Study (FWS) program earnings, certain other federal financial aid for students, North Carolina State Contractual Scholarship funds, and administrative cost allowances, where applicable. Expenditures for federal research and development programs are determined using the cost accounting principles and procedures set forth in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Under these cost principles, certain expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: For the year ended June 30, 2024, the College did not elect to apply the 10% De Minimus Indirect Cost Rate permitted by Uniform Guidance. The College is responsible only for the performance of certain administrative duties with respect to its Direct Loan Programs, and accordingly, these loans are not included in its financial statements. It is not practical to determine the balance of the loans outstanding to students and former students of the College under these programs as of June 30, 2024.
Title: Matching Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activities of The Trustees of Davidson College (the College) and is presented on the accrual basis of accounting. The information in the 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). The accompanying schedule of expenditures of state awards includes state grant activities of the College and is presented on accrual basis of accounting. Therefore, some amounts presented in the schedules may differ from amounts presented in, or used in the preparation of, the basic financial statements.Expenditures for student financial aid programs include the federal share of students’ Federal Supplemental Educational Opportunity Grant (FSEOG) program grants and Federal Work Study (FWS) program earnings, certain other federal financial aid for students, North Carolina State Contractual Scholarship funds, and administrative cost allowances, where applicable. Expenditures for federal research and development programs are determined using the cost accounting principles and procedures set forth in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Under these cost principles, certain expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: For the year ended June 30, 2024, the College did not elect to apply the 10% De Minimus Indirect Cost Rate permitted by Uniform Guidance. Under the FWS program, the College matched $95,887 in compensation for the year ended June 30, 2024 in addition to the federal share of expenditures in the accompanying schedule of expenditures of federal awards. Under the FSEOG program, the College matched $72,002 in funds awarded to students for the year ended June 30, 2024 in addition to the federal share of expenditures in the accompanying schedule of expenditures of federal awards.

Finding Details

Finding 2024-001
Finding 2024-001: Enrollment Reporting Federal Agency U.S. Department of Education Federal Program Student Financial Assistance Cluster (CFDA # 84.268, 84.063) Federal Award Year July 1, 2023 through June 30, 2024 Federal Award Numbers P063P231924; P268K241924Criteria Per Section 34 CFR 685.309, a school shall update the student status confirmation report for changes in student status, report the date the enrollment status was effective and return the student status confirmation report to the Secretary within 60 days of receipt. Per Section 4.4.3 of the National Students Loan Data System (NSLDS) enrollment reporting guide, reporting of graduated status is critical to the protection of a student’s interest subsidy and initiation of repayment periods. Per 34 CFR 668.22(d), the number of days in the approved leave of absence (LOA) cannot exceed 180 days. Per Volume 5 Chapter 1 of the SFA Handbook, if an LOA does not meet the conditions for an approved LOA, the student is considered to have ceased attendance and to have withdrawn from the school, and the school is required to perform an R2T4 calculation. Per 2 CFR 200.303, the 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. Condition For 20 out of 40 students, the students were appropriately reported with a Graduated status but with an effective date of January 16, 2024, rather than May 10, 2024. For 1 out of 40 students, the student communicated an LOA that would last two semesters and therefore, does not meet the requirements for an LOA status. The student should have been reported with a withdrawn status effective January 16, 2024 but instead was reported as less than half-time status effective January 16, 2024 and then LOA status effective August 26, 2024 and then withdrawn status effective January 21, 2025. Cause and Effect The control that management sets a predetermined schedule to submit an enrollment report, on at least a monthly basis is to ensure timely reporting to the NSLDS, and reviews all reports for the accuracy of all data elements prior to submission was not operating at a level to identify all discrepancies. Questioned Costs None identified. Sampling The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding in the Prior Year No. Recommendation We recommend the College enhance the precision of the control around the review of accuracy of the program level and campus level enrollment reporting submissions.Views of Responsible Officials The Financial Aid Office and the Registrar’s office agree that reporting to NDLDS for the year ended June 30, 2024 resulted in erroneous effective dates for graduated students and for one student on leave. A meeting has been set for both offices to meet and develop procedures to help ensure the reporting process is accurate. A plan is in place for review of the current year filings in early June 2025. A plan will be developed with dates for future years. This plan will include reporting procedures for all types of Davidson students who receive federal funds.
Finding 2024-001
Finding 2024-001: Enrollment Reporting Federal Agency U.S. Department of Education Federal Program Student Financial Assistance Cluster (CFDA # 84.268, 84.063) Federal Award Year July 1, 2023 through June 30, 2024 Federal Award Numbers P063P231924; P268K241924Criteria Per Section 34 CFR 685.309, a school shall update the student status confirmation report for changes in student status, report the date the enrollment status was effective and return the student status confirmation report to the Secretary within 60 days of receipt. Per Section 4.4.3 of the National Students Loan Data System (NSLDS) enrollment reporting guide, reporting of graduated status is critical to the protection of a student’s interest subsidy and initiation of repayment periods. Per 34 CFR 668.22(d), the number of days in the approved leave of absence (LOA) cannot exceed 180 days. Per Volume 5 Chapter 1 of the SFA Handbook, if an LOA does not meet the conditions for an approved LOA, the student is considered to have ceased attendance and to have withdrawn from the school, and the school is required to perform an R2T4 calculation. Per 2 CFR 200.303, the 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. Condition For 20 out of 40 students, the students were appropriately reported with a Graduated status but with an effective date of January 16, 2024, rather than May 10, 2024. For 1 out of 40 students, the student communicated an LOA that would last two semesters and therefore, does not meet the requirements for an LOA status. The student should have been reported with a withdrawn status effective January 16, 2024 but instead was reported as less than half-time status effective January 16, 2024 and then LOA status effective August 26, 2024 and then withdrawn status effective January 21, 2025. Cause and Effect The control that management sets a predetermined schedule to submit an enrollment report, on at least a monthly basis is to ensure timely reporting to the NSLDS, and reviews all reports for the accuracy of all data elements prior to submission was not operating at a level to identify all discrepancies. Questioned Costs None identified. Sampling The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding in the Prior Year No. Recommendation We recommend the College enhance the precision of the control around the review of accuracy of the program level and campus level enrollment reporting submissions.Views of Responsible Officials The Financial Aid Office and the Registrar’s office agree that reporting to NDLDS for the year ended June 30, 2024 resulted in erroneous effective dates for graduated students and for one student on leave. A meeting has been set for both offices to meet and develop procedures to help ensure the reporting process is accurate. A plan is in place for review of the current year filings in early June 2025. A plan will be developed with dates for future years. This plan will include reporting procedures for all types of Davidson students who receive federal funds.
Finding 2024-001
Finding 2024-001: Enrollment Reporting Federal Agency U.S. Department of Education Federal Program Student Financial Assistance Cluster (CFDA # 84.268, 84.063) Federal Award Year July 1, 2023 through June 30, 2024 Federal Award Numbers P063P231924; P268K241924Criteria Per Section 34 CFR 685.309, a school shall update the student status confirmation report for changes in student status, report the date the enrollment status was effective and return the student status confirmation report to the Secretary within 60 days of receipt. Per Section 4.4.3 of the National Students Loan Data System (NSLDS) enrollment reporting guide, reporting of graduated status is critical to the protection of a student’s interest subsidy and initiation of repayment periods. Per 34 CFR 668.22(d), the number of days in the approved leave of absence (LOA) cannot exceed 180 days. Per Volume 5 Chapter 1 of the SFA Handbook, if an LOA does not meet the conditions for an approved LOA, the student is considered to have ceased attendance and to have withdrawn from the school, and the school is required to perform an R2T4 calculation. Per 2 CFR 200.303, the 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. Condition For 20 out of 40 students, the students were appropriately reported with a Graduated status but with an effective date of January 16, 2024, rather than May 10, 2024. For 1 out of 40 students, the student communicated an LOA that would last two semesters and therefore, does not meet the requirements for an LOA status. The student should have been reported with a withdrawn status effective January 16, 2024 but instead was reported as less than half-time status effective January 16, 2024 and then LOA status effective August 26, 2024 and then withdrawn status effective January 21, 2025. Cause and Effect The control that management sets a predetermined schedule to submit an enrollment report, on at least a monthly basis is to ensure timely reporting to the NSLDS, and reviews all reports for the accuracy of all data elements prior to submission was not operating at a level to identify all discrepancies. Questioned Costs None identified. Sampling The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding in the Prior Year No. Recommendation We recommend the College enhance the precision of the control around the review of accuracy of the program level and campus level enrollment reporting submissions.Views of Responsible Officials The Financial Aid Office and the Registrar’s office agree that reporting to NDLDS for the year ended June 30, 2024 resulted in erroneous effective dates for graduated students and for one student on leave. A meeting has been set for both offices to meet and develop procedures to help ensure the reporting process is accurate. A plan is in place for review of the current year filings in early June 2025. A plan will be developed with dates for future years. This plan will include reporting procedures for all types of Davidson students who receive federal funds.
Finding 2024-001
Finding 2024-001: Enrollment Reporting Federal Agency U.S. Department of Education Federal Program Student Financial Assistance Cluster (CFDA # 84.268, 84.063) Federal Award Year July 1, 2023 through June 30, 2024 Federal Award Numbers P063P231924; P268K241924Criteria Per Section 34 CFR 685.309, a school shall update the student status confirmation report for changes in student status, report the date the enrollment status was effective and return the student status confirmation report to the Secretary within 60 days of receipt. Per Section 4.4.3 of the National Students Loan Data System (NSLDS) enrollment reporting guide, reporting of graduated status is critical to the protection of a student’s interest subsidy and initiation of repayment periods. Per 34 CFR 668.22(d), the number of days in the approved leave of absence (LOA) cannot exceed 180 days. Per Volume 5 Chapter 1 of the SFA Handbook, if an LOA does not meet the conditions for an approved LOA, the student is considered to have ceased attendance and to have withdrawn from the school, and the school is required to perform an R2T4 calculation. Per 2 CFR 200.303, the 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. Condition For 20 out of 40 students, the students were appropriately reported with a Graduated status but with an effective date of January 16, 2024, rather than May 10, 2024. For 1 out of 40 students, the student communicated an LOA that would last two semesters and therefore, does not meet the requirements for an LOA status. The student should have been reported with a withdrawn status effective January 16, 2024 but instead was reported as less than half-time status effective January 16, 2024 and then LOA status effective August 26, 2024 and then withdrawn status effective January 21, 2025. Cause and Effect The control that management sets a predetermined schedule to submit an enrollment report, on at least a monthly basis is to ensure timely reporting to the NSLDS, and reviews all reports for the accuracy of all data elements prior to submission was not operating at a level to identify all discrepancies. Questioned Costs None identified. Sampling The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding in the Prior Year No. Recommendation We recommend the College enhance the precision of the control around the review of accuracy of the program level and campus level enrollment reporting submissions.Views of Responsible Officials The Financial Aid Office and the Registrar’s office agree that reporting to NDLDS for the year ended June 30, 2024 resulted in erroneous effective dates for graduated students and for one student on leave. A meeting has been set for both offices to meet and develop procedures to help ensure the reporting process is accurate. A plan is in place for review of the current year filings in early June 2025. A plan will be developed with dates for future years. This plan will include reporting procedures for all types of Davidson students who receive federal funds.