FAC Explorer

Audit 350686

FY End
2024-06-30
Total Expended
$43.33M
Findings
2
Programs
21
Organization: Fairfield University (CT)
Year: 2024 Accepted: 2025-03-31
Auditor: Kpmg LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
541104 2024-001 Significant Deficiency - L
1117546 2024-001 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $35.62M Yes 0
84.063 Federal Pell Grant Program $1.99M Yes 1
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.09M Yes 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $1.06M - 0
84.038 Federal Perkins Loan Program_federal Capital Contributions $414,406 Yes 0
93.732 Mental and Behavioral Health Education and Training Grants $411,491 - 0
84.033 Federal Work-Study Program $411,029 Yes 0
84.047 Trio Upward Bound $386,781 - 0
84.007 Federal Supplemental Educational Opportunity Grants $264,154 Yes 0
93.247 Advanced Nursing Education Workforce Grant Program $220,084 Yes 0
93.364 Nursing Student Loans $215,325 Yes 0
43.008 Office of Stem Engagement (ostem) $76,575 - 0
93.124 Nurse Anesthetist Traineeship $63,687 - 0
47.041 Engineering $52,489 - 0
84.425 Education Stabilization Fund $21,895 - 0
93.043 Special Programs for the Aging, Title Iii, Part D, Disease Prevention and Health Promotion Services $13,585 - 0
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $13,520 - 0
47.076 Stem Education (formerly Education and Human Resources) $12,319 - 0
15.808 U.s. Geological Survey Research and Data Collection $10,432 - 0
47.046 Science Education_problem Assessment and Experimental Projects $4,975 - 0
47.049 Mathematical and Physical Sciences $3,221 - 0

Contacts

Name Title Type
CMMFBJ2F9W56 Michael Trafecante Auditee
2032544035 Shana Block Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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: Indirect costs are allocated to individual grants within the Schedule in accordance with the contractual provisions of each grant. The indirect costs are calculated based upon either a negotiated rate with the Department of Health and Human Services effective through June 30, 2024, or the specific requirements of the particular grant. The University has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Fairfield University (the University) under programs of the federal government for the year ended June 30, 2024. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the University, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the University.
Title: Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule 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: Indirect costs are allocated to individual grants within the Schedule in accordance with the contractual provisions of each grant. The indirect costs are calculated based upon either a negotiated rate with the Department of Health and Human Services effective through June 30, 2024, or the specific requirements of the particular grant. The University has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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.
Title: Indirect Costs Accounting Policies: Expenditures reported on the Schedule 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: Indirect costs are allocated to individual grants within the Schedule in accordance with the contractual provisions of each grant. The indirect costs are calculated based upon either a negotiated rate with the Department of Health and Human Services effective through June 30, 2024, or the specific requirements of the particular grant. The University has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Indirect costs are allocated to individual grants within the Schedule in accordance with the contractual provisions of each grant. The indirect costs are calculated based upon either a negotiated rate with the Department of Health and Human Services effective through June 30, 2024, or the specific requirements of the particular grant. The University has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Federal Perkins and Health Professions Student Loan Programs Accounting Policies: Expenditures reported on the Schedule 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: Indirect costs are allocated to individual grants within the Schedule in accordance with the contractual provisions of each grant. The indirect costs are calculated based upon either a negotiated rate with the Department of Health and Human Services effective through June 30, 2024, or the specific requirements of the particular grant. The University has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The University administers and accounts for all aspects of the Federal Perkins Loan and the Health Professions Student Loan Programs. Therefore, the University’s financial statements include the programs’ transactions. There were no new loans issued during the fiscal year. Loans outstanding at the beginning of the year and activity for the loans during the year are included on the accompanying Schedule, detailed as follows: 84.038 - Loans outstanding at July 1, 2023 - $414,406, Amounts assigned during the year ended June 30, 2024 - 4,375, Amounts repaid during the year ended June 30, 2024 - 120,921, Reserve for doubtful accounts - 70,169, Loans oustanding at June 30, 2024 - 218,941 93.364 - Loans outstanding at July 1, 2023 - $215,325, Amounts assigned during the year ended June 30, 2024 - 0, Amounts repaid during the year ended June 30, 2024 - 64,292, Reserve for doubtful accounts - 74,580, Loans oustanding at June 30, 2024 - 76,453
Title: Federal Direct Student Loan Program Accounting Policies: Expenditures reported on the Schedule 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: Indirect costs are allocated to individual grants within the Schedule in accordance with the contractual provisions of each grant. The indirect costs are calculated based upon either a negotiated rate with the Department of Health and Human Services effective through June 30, 2024, or the specific requirements of the particular grant. The University has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. For the Federal Direct Student Loan Program, the University is only responsible for the performance of certain administrative duties; therefore, the associated net assets and transactions are not included in the University’s financial statements, and it is not practicable to determine the balances of loans outstanding to students of the University under this program at June 30, 2024. The Schedule includes the amounts loaned to students during the year ended June 30, 2024.

Finding Details

Finding 2024-001
Student Financial Assistance Cluster: U.S. Department of Education: Federal Pell Grant Program – ALN 84.063 Statistically valid sample: No and it was not intended to be. Repeat finding: Not a repeat finding. Compliance Requirement – Reporting Criteria Institutions submit Direct Loan, Pell Grant, TEACH Grant, and IASG origination records and disbursement records to the Common Origination and Disbursement (COD) system. Origination records can be sent well in advance of any disbursements, as early as the institution chooses to submit them for any student the institution reasonably believes will be eligible for a payment. An institution follows up with a disbursement record for that student no earlier than (1) seven calendar days prior to the disbursement date under the Advance or Heightened Cash Monitoring 1 payment methods, or (2) the date of the disbursement under the Reimbursement or Heightened Cash Monitoring 2 Payment Method (see Federal Register, Volume 86, Number 119, June 24, 2021). The disbursement record reports the actual disbursement date and the amount of the disbursement. ED processes origination and/or disbursement records and returns acknowledgments to the institution. The acknowledgments identify the processing status of each record: Rejected, Accepted with Corrections, or Accepted. Institutions must report student disbursement data within 15 calendar days after the institution makes a disbursement or becomes aware of the need to make an adjustment to previously reported student disbursement data or expected student disbursement data. Institutions may do this by reporting once every 15 calendar days, bi-weekly or weekly, or may set up their own system to ensure that changes are reported in a timely manner. Condition and Context We selected forty students who received a Pell Grant disbursement and the following exceptions. • For two Pell Grant disbursements, the disbursement was not reported within 15 days to the COD system. Both disbursements were reported 19 days late. Cause The students involved in this finding were students who received Pell Grant and were enrolled in the Winter and Spring 2024 semesters. The University identified an issue in reporting for the Spring 2024 semester and the reconciliation of Pell Grant disbursements for students that received Pell Grant for the Winter and Spring 2024 semester was delayed. The disbursements were correctly reported to the COD system, however, outside of the 15 day reporting requirement. Effect Disbursements not reported in a timely manner could result in discrepancies between University disbursement records and COD system disbursement records. Questioned Costs There were no questioned costs related to this finding. Recommendation We recommend the University reinforces its policies and procedures for persons responsible for reporting Pell Grant disbursements to the COD system to ensure compliance with the requirement of submitting disbursements in a timely manner. Views of Responsible Official Management of the University agrees with the recommendation. The corrective action by Corry Unis, Vice President for Enrollment Management and Diana Draper, Executive Director of Financial Aid is as follows: Initial corrective action was taken by Diana Draper, Financial Aid Director, in March 2024 when the student disbursements were reports to COD. Additional corrective actions included systematic controls, additional training, and greater internal monitoring and auditing have been put in place.
Finding 2024-001
Student Financial Assistance Cluster: U.S. Department of Education: Federal Pell Grant Program – ALN 84.063 Statistically valid sample: No and it was not intended to be. Repeat finding: Not a repeat finding. Compliance Requirement – Reporting Criteria Institutions submit Direct Loan, Pell Grant, TEACH Grant, and IASG origination records and disbursement records to the Common Origination and Disbursement (COD) system. Origination records can be sent well in advance of any disbursements, as early as the institution chooses to submit them for any student the institution reasonably believes will be eligible for a payment. An institution follows up with a disbursement record for that student no earlier than (1) seven calendar days prior to the disbursement date under the Advance or Heightened Cash Monitoring 1 payment methods, or (2) the date of the disbursement under the Reimbursement or Heightened Cash Monitoring 2 Payment Method (see Federal Register, Volume 86, Number 119, June 24, 2021). The disbursement record reports the actual disbursement date and the amount of the disbursement. ED processes origination and/or disbursement records and returns acknowledgments to the institution. The acknowledgments identify the processing status of each record: Rejected, Accepted with Corrections, or Accepted. Institutions must report student disbursement data within 15 calendar days after the institution makes a disbursement or becomes aware of the need to make an adjustment to previously reported student disbursement data or expected student disbursement data. Institutions may do this by reporting once every 15 calendar days, bi-weekly or weekly, or may set up their own system to ensure that changes are reported in a timely manner. Condition and Context We selected forty students who received a Pell Grant disbursement and the following exceptions. • For two Pell Grant disbursements, the disbursement was not reported within 15 days to the COD system. Both disbursements were reported 19 days late. Cause The students involved in this finding were students who received Pell Grant and were enrolled in the Winter and Spring 2024 semesters. The University identified an issue in reporting for the Spring 2024 semester and the reconciliation of Pell Grant disbursements for students that received Pell Grant for the Winter and Spring 2024 semester was delayed. The disbursements were correctly reported to the COD system, however, outside of the 15 day reporting requirement. Effect Disbursements not reported in a timely manner could result in discrepancies between University disbursement records and COD system disbursement records. Questioned Costs There were no questioned costs related to this finding. Recommendation We recommend the University reinforces its policies and procedures for persons responsible for reporting Pell Grant disbursements to the COD system to ensure compliance with the requirement of submitting disbursements in a timely manner. Views of Responsible Official Management of the University agrees with the recommendation. The corrective action by Corry Unis, Vice President for Enrollment Management and Diana Draper, Executive Director of Financial Aid is as follows: Initial corrective action was taken by Diana Draper, Financial Aid Director, in March 2024 when the student disbursements were reports to COD. Additional corrective actions included systematic controls, additional training, and greater internal monitoring and auditing have been put in place.