FAC Explorer

Audit 350984

FY End
2024-06-30
Total Expended
$27.58M
Findings
4
Programs
18
Organization: Voorhees University (SC)
Year: 2024 Accepted: 2025-03-31
Auditor: Scott and Company LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
544350 2024-002 - - C
544351 2024-003 - - C
1120792 2024-002 - - C
1120793 2024-003 - - C

Programs

ALN Program Spent Major Findings
84.423 Supporting Effective Educator Development Program $8.18M Yes 1
84.334 Gaining Early Awareness and Readiness for Undergraduate Programs $6.42M - 1
84.031 Higher Education Institutional Aid $2.77M - 0
84.063 Federal Pell Grant Program $2.31M - 0
84.411 Education Innovation and Research (formerly Investing in Innovation (i3) Fund) $2.09M - 0
84.336 Teacher Quality Partnership Grants $1.79M - 0
84.268 Federal Direct Student Loans $1.55M - 0
81.104 Environmental Remediation and Waste Processing and Disposal $567,747 Yes 0
84.007 Federal Supplemental Educational Opportunity Grants $508,583 - 0
84.033 Federal Work-Study Program $341,085 - 0
84.042 Trio Student Support Services $302,602 - 0
81.137 Minority Economic Impact $284,963 - 0
84.116 Fund for the Improvement of Postsecondary Education $103,100 - 0
10.351 Rural Business Development Grant $97,922 - 0
84.425 Education Stabilization Fund $72,406 - 0
10.766 Community Facilities Loans and Grants $70,322 - 0
16.753 Congressionally Recommended Awards $65,850 - 0
47.076 Stem Education (formerly Education and Human Resources) $59,220 - 0

Contacts

Name Title Type
LSMRHTLQXBQ9 Diane O'Berry Auditee
8037801149 William Pouncey 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 activity of Voorhees 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 (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the “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. 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: The University has elected not to use the 10 percent de minimis indirect cost rate allowed under Uniform Guidance. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Voorhees 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 (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the “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: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Voorhees 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 (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the “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. 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: The University has elected not to use the 10 percent de minimis indirect cost rate allowed under 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. The University has elected not to use the 10 percent de minimis indirect cost rate allowed under Uniform Guidance.
Title: Student Financial Aid Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Voorhees 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 (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the “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. 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: The University has elected not to use the 10 percent de minimis indirect cost rate allowed under Uniform Guidance. Federal Direct Student Loan Program - During the year ended June 30, 2024, the University awarded Federal Subsidized and Unsubsidized Stafford Loans and Federal Plus Loans. The University’s most recent cohort default rate (based on 2021 data) was 0.0%, which is in compliance with the 30.0% threshold under Federal regulations. The cohort default rate continues to be impacted by the pause on federal student loan repayments that began March 13, 2020, and ended September 30, 2023. During the pause, borrowers were not required to make any payments and no borrowers entered default. Composite Score - The University’s composite score for the year ended June 30, 2023 was 3.0 (maximum possible score is 3.0) as determined in accordance with 34 CFR 668.172, financial responsibility standards. The composite score measures an institution’s financial ability to administer the Federal Title IV programs. The University’s score indicates that it is financially responsible.

Finding Details

Finding 2024-002
Condition and Criteria: According to 2 CFR section 200.305(b), non-federal entities must minimize the time elapsed between transfer of funds from the US Treasury or pass-through entity and disbursement by the non-federal entity for direct program project costs and the proportionate share of allowable indirect costs. Minimum elapsed time for funds transfer is dependent upon the payment system/method used by the non-federal entity. The US Department of Education (ED) uses the G6 grants management platform, which is a module of the Education Central Automated Processing System (EDCAPS). Generally, funds requested from G6 process overnight and the funds are available in the non-federal entity’s account the next business day. The University has procedures in place to ensure that funds are drawn down from G6 only after they have been expended. However, we noted in one (1) instance where an amount appears to have been drawn down in advance. Context: The University made twenty nine (29) drawdowns of federal program funds during the fiscal year. In comparing the dates of the drawdowns with the accumulated program expenditures to each drawdown date, one (1) drawdown on 12/20/2023 exceeded accumulated program expenditures as of that date by $44,538. By 1/12/2024, the University had expended the amount advanced. Effect: The University was not in compliance with federal cash management regulations for a portion of the current fiscal year. Cause: Administrative oversight. Auditor's Recommendation: The University should development a spreadsheet or other tool similar to the one the auditor used to test cash management compliance that compares cumulative program expenditures to drawdowns. This tool should be updated prior to drawing down funds in order to ensure that drawdowns are limited to amounts expended at any point in time.
Finding 2024-003
Condition and criteria: According to 2 CFR section 200.305(b)(1), advance payments to a recipient or subrecipient must be limited to the minimum amounts needed and be timed with actual, immediate cash requirements of the recipient or subrecipient in carrying out the purpose of the approved program or project. The timing and amount of advance payments must be as close as is administratively feasible to the actual disbursements by the recipient or subrecipient for direct program or project costs and the proportionate share of any allowable indirect costs. 2 CFR section 200.305(b)(11) further states that the recipient or subrecipient must generally maintain advance payments of federal funds in interest-bearing accounts. It was noted during the audit that the University received an advance payment of $1,483,500 to be used for student scholarships in a future fiscal year and such advance payment was deposited into a noninterest-bearing account. Context: The funds were advanced to the University in April 2024 and had not been expended as of June 30, 2024. Such funds were still deposited in the noninterest-bearing account as of June 30, 2024. Effect: The University was not in compliance with federal cash management regulations for a portion of the current fiscal year. Cause: University personnel indicate that they were advised by ED that it was permissible to draw down the funds in advance and hold them in a noninterest-bearing account until needed. Auditor’s Recommendation: At a minimum, the University should transfer the advanced funds to an interest-bearing account. Interest earned on federal advance payments in excess of $500 should be remitted annually to the US Department of Health and Human Services using the instructions contained in the enclosures to the original grant award notification. The University should also contact appropriate ED officials to ensure that it is in compliance with 2 CFR section 200.305(b)(1).
Finding 2024-002
Condition and Criteria: According to 2 CFR section 200.305(b), non-federal entities must minimize the time elapsed between transfer of funds from the US Treasury or pass-through entity and disbursement by the non-federal entity for direct program project costs and the proportionate share of allowable indirect costs. Minimum elapsed time for funds transfer is dependent upon the payment system/method used by the non-federal entity. The US Department of Education (ED) uses the G6 grants management platform, which is a module of the Education Central Automated Processing System (EDCAPS). Generally, funds requested from G6 process overnight and the funds are available in the non-federal entity’s account the next business day. The University has procedures in place to ensure that funds are drawn down from G6 only after they have been expended. However, we noted in one (1) instance where an amount appears to have been drawn down in advance. Context: The University made twenty nine (29) drawdowns of federal program funds during the fiscal year. In comparing the dates of the drawdowns with the accumulated program expenditures to each drawdown date, one (1) drawdown on 12/20/2023 exceeded accumulated program expenditures as of that date by $44,538. By 1/12/2024, the University had expended the amount advanced. Effect: The University was not in compliance with federal cash management regulations for a portion of the current fiscal year. Cause: Administrative oversight. Auditor's Recommendation: The University should development a spreadsheet or other tool similar to the one the auditor used to test cash management compliance that compares cumulative program expenditures to drawdowns. This tool should be updated prior to drawing down funds in order to ensure that drawdowns are limited to amounts expended at any point in time.
Finding 2024-003
Condition and criteria: According to 2 CFR section 200.305(b)(1), advance payments to a recipient or subrecipient must be limited to the minimum amounts needed and be timed with actual, immediate cash requirements of the recipient or subrecipient in carrying out the purpose of the approved program or project. The timing and amount of advance payments must be as close as is administratively feasible to the actual disbursements by the recipient or subrecipient for direct program or project costs and the proportionate share of any allowable indirect costs. 2 CFR section 200.305(b)(11) further states that the recipient or subrecipient must generally maintain advance payments of federal funds in interest-bearing accounts. It was noted during the audit that the University received an advance payment of $1,483,500 to be used for student scholarships in a future fiscal year and such advance payment was deposited into a noninterest-bearing account. Context: The funds were advanced to the University in April 2024 and had not been expended as of June 30, 2024. Such funds were still deposited in the noninterest-bearing account as of June 30, 2024. Effect: The University was not in compliance with federal cash management regulations for a portion of the current fiscal year. Cause: University personnel indicate that they were advised by ED that it was permissible to draw down the funds in advance and hold them in a noninterest-bearing account until needed. Auditor’s Recommendation: At a minimum, the University should transfer the advanced funds to an interest-bearing account. Interest earned on federal advance payments in excess of $500 should be remitted annually to the US Department of Health and Human Services using the instructions contained in the enclosures to the original grant award notification. The University should also contact appropriate ED officials to ensure that it is in compliance with 2 CFR section 200.305(b)(1).