FAC Explorer

Audit 351511

FY End
2024-06-30
Total Expended
$8.99M
Findings
14
Programs
6
Organization: Georgetown College (KY)
Year: 2024 Accepted: 2025-03-31
Auditor: Dean Dorton Allen Ford PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
547161 2024-002 Significant Deficiency - N
547162 2024-003 Significant Deficiency - N
547163 2024-004 Significant Deficiency - L
547164 2024-005 Significant Deficiency - E
547165 2024-006 Significant Deficiency - L
547166 2024-006 Significant Deficiency - L
547167 2024-006 Significant Deficiency - L
1123603 2024-002 Significant Deficiency - N
1123604 2024-003 Significant Deficiency - N
1123605 2024-004 Significant Deficiency - L
1123606 2024-005 Significant Deficiency - E
1123607 2024-006 Significant Deficiency - L
1123608 2024-006 Significant Deficiency - L
1123609 2024-006 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $6.13M Yes 3
84.063 Federal Pell Grant Program $2.25M Yes 0
84.038 Federal Perkins Loan Program_federal Capital Contributions $220,981 Yes 1
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $193,207 Yes 0
84.007 Federal Supplemental Educational Opportunity Grants $112,648 Yes 2
84.033 Federal Work-Study Program $82,414 Yes 1

Contacts

Name Title Type
LVSVTWUL1XT6 Brad Compton Auditee
5028637970 Megan Crane Auditor
No contacts on file

Notes to SEFA

Title: Federal Student Loan Programs Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The College has not elected to us the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Federal Perkins Loan Program is administered directly by the College and balances and transactions relating to this program are included in the College's financial statements. Total cumulative loans outstanding from the Federal Perkins Loan Program of $220,981 are included in the accompanying schedule of expenditures of federal awards. No new loans were awarded and disbursed for the year ended June 30, 2024. The College is responsible only for the performance of certain administrative duties with respect to the Federal Direct Loan Program and, accordingly, these loans are not included in the financial statements of the College. It is not practical to determine the balance of loans outstanding to students and former students of the College under this program as of June 30, 2024. The current expenditures under the Federal Direct Loan Program of $6,132,206 are included in the accompanying schedule of expenditures of federal awards.
Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The College has not elected to us the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awrads (the Schedule) includes the federal award activity of Georgetown College (the College) 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 (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the College, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the College.

Finding Details

Finding 2024-002
Federal Program: U.S. Department of Education - Student Financial Assistance Cluster Federal Direct Loan Program, 84.268 Criteria: The College is required to comply with 34 CFR Section 685.309(b). Condition: During our testing of eligibility, official withdrawals, and student status changes for graduates, we selected 40, one, and 21 samples, respectively. We noted three instances in eligibility testing, one instance in official withdrawals, and one instance in student status change for graduates, where a students status changes were either not reported timely or accurately to the National Student Loan Database System (NSLDS). Cause: The College did not have controls in place to ensure student's classification were being timely and accurately reported to the NSLDS. Effect: Student status changes were not reported within the required timeframe under federal regulations or were reported with an incorrect enrollment status. The provisions of 34 CFR Section 685.309(b) were not followed and thus five students were not reported timely or accurately and subsequently not placed into loan repayment status in a proper manner. Questioned Costs: There were no questioned costs associated with this finding. Recommendation: We recommend that the College implement a control to ensure data is being reviewed for accuracy by the appropriate personnel before roster files are submitted to the NSLDS. In addition, we recommend that the College submit roster files on a regular basis. View of Responsible Officials: The College concurs with the finding. The Registrar's Office will implement a system of reviews and controls that ensure timely and accurate reporting of student status changes to the National Student Loan System (NSLDS).
Finding 2024-003
Finding 2024-003 Federal Program: U.S. Department of Education - Student Financial Assistance Cluster Federal Direct Loan Program, 84.268 Criteria: The College is required to comply with 34 CFR Section 685.304(a). Condition: During our testing of eligibility, we selected 40 samples and noted two instances where a student was disbursed a direct loan prior to entrance counseling being completed. Cause: The College did not have controls in place to ensure entrance counseling was completed prior to a loan disbursement. Effect: The College did not follow federal regulations regarding loan disbursements. The provisions of 34 CFR Section 385.304(a) were not followed and thus two students improperly disbursed a direct loan. Questioned Costs: There are a total of $9,250 of questioned costs associated with this finding. $5,192 related to subsidized loans and $4,058 related to unsubsidized loans. Recommendation: We recommend that the College implement a control to ensure loans are not disbursed to students until entrance counseling has been completed by the student. View of Responsible Officials: The College agrees with the finding. Controls have already been implemented to ensure that compliance with all federal and state requirements are met before aid is disbursed.
Finding 2024-004
Federal Program: U.S. Department of Education - Student Financial Assistance Cluster Federal Direct Loan Program, 84.268 Criteria: The College is required to comply with 34 CFR Section 685.301(a)(2). Condition: During our testing of eligibility, we selected 40 samples and noted three instances where the loan disbursement date on the student's ledger did not agree to the disbursement date on Common Origination and Disbursement (COD). Cause: The College did not have controls in place to properly review COD disbursement dates to verify all students had proper reporting to COD. Effect: The College did not follow federal regulations regarding reporting to COD. The provisions of 34 CFR Section 685.301(a)(2) were not followed and thus three students loans were improperly reported to COD. Questioned Costs: There are no questioned costs associated with this finding. Recommendation: We recommend that the College review all COD disbursements and perform monthly COD reconciliations by student to verify the disbursement date and amount matches the student ledger. View of Responsible Officials: The College concurs with the finding. Controls have already been implemented to ensure accurate and timely reporting to COD.
Finding 2024-005
Federal Program: U.S. Department of Education - Student Financial Assistance Cluster Federal Supplemental Educational Opportunity Grants, 84.007 Criteria: The College is required to comply with 34 CFR Section 676.10(a). Condition: During our testing of eligibility, we selected 40 samples and noted one instance where a student was disbursed a Federal Supplemental Education Opportunity Grant (FSEOG), but was not eligible due to not having the lowest expected family contribution (EFC). Cause: The College did not have controls in place to ensure FSEOG was only disbursed to the students with the lowest EFC. Effect: The College did not follow federal regulations regarding FSEOG eligibility. The provisions of 34 CFR Section 676.10(a) were not followed and thus a student was improperly disbursed FSEOG. Questioned Costs: There are a total of $800 of questioned costs associated with this finding. Recommendation: We recommend that the College implement a control and policy to ensure FSEOG is only disbursed to the students with the lowest EFC. View of Responsible Officials: The College agrees with the finding. Controls have already been implemented to ensure that compliance with all federal and state requirements are met before aid is disbursed.
Finding 2024-006
Federal Program: U.S. Department of Education - Student Financial Assistance Cluster Federal Perkins Loan Program, 84.038 Federal Supplemental Educational Opportunity Grants, 84.007 Federal Work Study Program, 84.033 Criteria: The College is required to comply with 34 CFR 674.19, 34 CFR 675.19 and 34 CFR 676.19. Condition: During our testing of the Fiscal Operations Report and Application to Participate (FISAP), we noted that Part II (Application), Section E, Line 22: total tuition and fees for the award year July 1, 2023 to June 30, 2024 did not agree or reconcile to the statement of activities. Cause: The College did not have controls in place to ensure FISAP reporting was accurate. Effect: The College did not follow federal regulations regarding FISAP reporting accuracy. The provisions of 34 CFR Section 674.19, 34 CFR 675.19 and 34 CFR 676.19 were not followed and thus the total tuition and fees for the award year July 1, 2023 to June 30, 2024 reported on the FISAP were greater than the tuition and fees reported on the statement of activities by $368,034. Questioned Costs: There are no questioned costs associated with this finding. Recommendation: We recommend that the College implement a control to ensure FISAP reporting is accurate. View of Responsible Officials: The College concurs with the finding. A system of controls will be implemented to ensure accurate data is reported on all required reporting.
Finding 2024-006
Federal Program: U.S. Department of Education - Student Financial Assistance Cluster Federal Perkins Loan Program, 84.038 Federal Supplemental Educational Opportunity Grants, 84.007 Federal Work Study Program, 84.033 Criteria: The College is required to comply with 34 CFR 674.19, 34 CFR 675.19 and 34 CFR 676.19. Condition: During our testing of the Fiscal Operations Report and Application to Participate (FISAP), we noted that Part II (Application), Section E, Line 22: total tuition and fees for the award year July 1, 2023 to June 30, 2024 did not agree or reconcile to the statement of activities. Cause: The College did not have controls in place to ensure FISAP reporting was accurate. Effect: The College did not follow federal regulations regarding FISAP reporting accuracy. The provisions of 34 CFR Section 674.19, 34 CFR 675.19 and 34 CFR 676.19 were not followed and thus the total tuition and fees for the award year July 1, 2023 to June 30, 2024 reported on the FISAP were greater than the tuition and fees reported on the statement of activities by $368,034. Questioned Costs: There are no questioned costs associated with this finding. Recommendation: We recommend that the College implement a control to ensure FISAP reporting is accurate. View of Responsible Officials: The College concurs with the finding. A system of controls will be implemented to ensure accurate data is reported on all required reporting.
Finding 2024-006
Federal Program: U.S. Department of Education - Student Financial Assistance Cluster Federal Perkins Loan Program, 84.038 Federal Supplemental Educational Opportunity Grants, 84.007 Federal Work Study Program, 84.033 Criteria: The College is required to comply with 34 CFR 674.19, 34 CFR 675.19 and 34 CFR 676.19. Condition: During our testing of the Fiscal Operations Report and Application to Participate (FISAP), we noted that Part II (Application), Section E, Line 22: total tuition and fees for the award year July 1, 2023 to June 30, 2024 did not agree or reconcile to the statement of activities. Cause: The College did not have controls in place to ensure FISAP reporting was accurate. Effect: The College did not follow federal regulations regarding FISAP reporting accuracy. The provisions of 34 CFR Section 674.19, 34 CFR 675.19 and 34 CFR 676.19 were not followed and thus the total tuition and fees for the award year July 1, 2023 to June 30, 2024 reported on the FISAP were greater than the tuition and fees reported on the statement of activities by $368,034. Questioned Costs: There are no questioned costs associated with this finding. Recommendation: We recommend that the College implement a control to ensure FISAP reporting is accurate. View of Responsible Officials: The College concurs with the finding. A system of controls will be implemented to ensure accurate data is reported on all required reporting.
Finding 2024-002
Federal Program: U.S. Department of Education - Student Financial Assistance Cluster Federal Direct Loan Program, 84.268 Criteria: The College is required to comply with 34 CFR Section 685.309(b). Condition: During our testing of eligibility, official withdrawals, and student status changes for graduates, we selected 40, one, and 21 samples, respectively. We noted three instances in eligibility testing, one instance in official withdrawals, and one instance in student status change for graduates, where a students status changes were either not reported timely or accurately to the National Student Loan Database System (NSLDS). Cause: The College did not have controls in place to ensure student's classification were being timely and accurately reported to the NSLDS. Effect: Student status changes were not reported within the required timeframe under federal regulations or were reported with an incorrect enrollment status. The provisions of 34 CFR Section 685.309(b) were not followed and thus five students were not reported timely or accurately and subsequently not placed into loan repayment status in a proper manner. Questioned Costs: There were no questioned costs associated with this finding. Recommendation: We recommend that the College implement a control to ensure data is being reviewed for accuracy by the appropriate personnel before roster files are submitted to the NSLDS. In addition, we recommend that the College submit roster files on a regular basis. View of Responsible Officials: The College concurs with the finding. The Registrar's Office will implement a system of reviews and controls that ensure timely and accurate reporting of student status changes to the National Student Loan System (NSLDS).
Finding 2024-003
Finding 2024-003 Federal Program: U.S. Department of Education - Student Financial Assistance Cluster Federal Direct Loan Program, 84.268 Criteria: The College is required to comply with 34 CFR Section 685.304(a). Condition: During our testing of eligibility, we selected 40 samples and noted two instances where a student was disbursed a direct loan prior to entrance counseling being completed. Cause: The College did not have controls in place to ensure entrance counseling was completed prior to a loan disbursement. Effect: The College did not follow federal regulations regarding loan disbursements. The provisions of 34 CFR Section 385.304(a) were not followed and thus two students improperly disbursed a direct loan. Questioned Costs: There are a total of $9,250 of questioned costs associated with this finding. $5,192 related to subsidized loans and $4,058 related to unsubsidized loans. Recommendation: We recommend that the College implement a control to ensure loans are not disbursed to students until entrance counseling has been completed by the student. View of Responsible Officials: The College agrees with the finding. Controls have already been implemented to ensure that compliance with all federal and state requirements are met before aid is disbursed.
Finding 2024-004
Federal Program: U.S. Department of Education - Student Financial Assistance Cluster Federal Direct Loan Program, 84.268 Criteria: The College is required to comply with 34 CFR Section 685.301(a)(2). Condition: During our testing of eligibility, we selected 40 samples and noted three instances where the loan disbursement date on the student's ledger did not agree to the disbursement date on Common Origination and Disbursement (COD). Cause: The College did not have controls in place to properly review COD disbursement dates to verify all students had proper reporting to COD. Effect: The College did not follow federal regulations regarding reporting to COD. The provisions of 34 CFR Section 685.301(a)(2) were not followed and thus three students loans were improperly reported to COD. Questioned Costs: There are no questioned costs associated with this finding. Recommendation: We recommend that the College review all COD disbursements and perform monthly COD reconciliations by student to verify the disbursement date and amount matches the student ledger. View of Responsible Officials: The College concurs with the finding. Controls have already been implemented to ensure accurate and timely reporting to COD.
Finding 2024-005
Federal Program: U.S. Department of Education - Student Financial Assistance Cluster Federal Supplemental Educational Opportunity Grants, 84.007 Criteria: The College is required to comply with 34 CFR Section 676.10(a). Condition: During our testing of eligibility, we selected 40 samples and noted one instance where a student was disbursed a Federal Supplemental Education Opportunity Grant (FSEOG), but was not eligible due to not having the lowest expected family contribution (EFC). Cause: The College did not have controls in place to ensure FSEOG was only disbursed to the students with the lowest EFC. Effect: The College did not follow federal regulations regarding FSEOG eligibility. The provisions of 34 CFR Section 676.10(a) were not followed and thus a student was improperly disbursed FSEOG. Questioned Costs: There are a total of $800 of questioned costs associated with this finding. Recommendation: We recommend that the College implement a control and policy to ensure FSEOG is only disbursed to the students with the lowest EFC. View of Responsible Officials: The College agrees with the finding. Controls have already been implemented to ensure that compliance with all federal and state requirements are met before aid is disbursed.
Finding 2024-006
Federal Program: U.S. Department of Education - Student Financial Assistance Cluster Federal Perkins Loan Program, 84.038 Federal Supplemental Educational Opportunity Grants, 84.007 Federal Work Study Program, 84.033 Criteria: The College is required to comply with 34 CFR 674.19, 34 CFR 675.19 and 34 CFR 676.19. Condition: During our testing of the Fiscal Operations Report and Application to Participate (FISAP), we noted that Part II (Application), Section E, Line 22: total tuition and fees for the award year July 1, 2023 to June 30, 2024 did not agree or reconcile to the statement of activities. Cause: The College did not have controls in place to ensure FISAP reporting was accurate. Effect: The College did not follow federal regulations regarding FISAP reporting accuracy. The provisions of 34 CFR Section 674.19, 34 CFR 675.19 and 34 CFR 676.19 were not followed and thus the total tuition and fees for the award year July 1, 2023 to June 30, 2024 reported on the FISAP were greater than the tuition and fees reported on the statement of activities by $368,034. Questioned Costs: There are no questioned costs associated with this finding. Recommendation: We recommend that the College implement a control to ensure FISAP reporting is accurate. View of Responsible Officials: The College concurs with the finding. A system of controls will be implemented to ensure accurate data is reported on all required reporting.
Finding 2024-006
Federal Program: U.S. Department of Education - Student Financial Assistance Cluster Federal Perkins Loan Program, 84.038 Federal Supplemental Educational Opportunity Grants, 84.007 Federal Work Study Program, 84.033 Criteria: The College is required to comply with 34 CFR 674.19, 34 CFR 675.19 and 34 CFR 676.19. Condition: During our testing of the Fiscal Operations Report and Application to Participate (FISAP), we noted that Part II (Application), Section E, Line 22: total tuition and fees for the award year July 1, 2023 to June 30, 2024 did not agree or reconcile to the statement of activities. Cause: The College did not have controls in place to ensure FISAP reporting was accurate. Effect: The College did not follow federal regulations regarding FISAP reporting accuracy. The provisions of 34 CFR Section 674.19, 34 CFR 675.19 and 34 CFR 676.19 were not followed and thus the total tuition and fees for the award year July 1, 2023 to June 30, 2024 reported on the FISAP were greater than the tuition and fees reported on the statement of activities by $368,034. Questioned Costs: There are no questioned costs associated with this finding. Recommendation: We recommend that the College implement a control to ensure FISAP reporting is accurate. View of Responsible Officials: The College concurs with the finding. A system of controls will be implemented to ensure accurate data is reported on all required reporting.
Finding 2024-006
Federal Program: U.S. Department of Education - Student Financial Assistance Cluster Federal Perkins Loan Program, 84.038 Federal Supplemental Educational Opportunity Grants, 84.007 Federal Work Study Program, 84.033 Criteria: The College is required to comply with 34 CFR 674.19, 34 CFR 675.19 and 34 CFR 676.19. Condition: During our testing of the Fiscal Operations Report and Application to Participate (FISAP), we noted that Part II (Application), Section E, Line 22: total tuition and fees for the award year July 1, 2023 to June 30, 2024 did not agree or reconcile to the statement of activities. Cause: The College did not have controls in place to ensure FISAP reporting was accurate. Effect: The College did not follow federal regulations regarding FISAP reporting accuracy. The provisions of 34 CFR Section 674.19, 34 CFR 675.19 and 34 CFR 676.19 were not followed and thus the total tuition and fees for the award year July 1, 2023 to June 30, 2024 reported on the FISAP were greater than the tuition and fees reported on the statement of activities by $368,034. Questioned Costs: There are no questioned costs associated with this finding. Recommendation: We recommend that the College implement a control to ensure FISAP reporting is accurate. View of Responsible Officials: The College concurs with the finding. A system of controls will be implemented to ensure accurate data is reported on all required reporting.