FAC Explorer

Audit 351649

FY End
2024-06-30
Total Expended
$3.59M
Findings
4
Programs
7
Organization: Eastern Nazarene College (MA)
Year: 2024 Accepted: 2025-03-31
Auditor: Withumsmith+brown PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
547409 2024-001 Significant Deficiency - E
547410 2024-002 - - E
1123851 2024-001 Significant Deficiency - E
1123852 2024-002 - - E

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $2.40M Yes 0
84.063 Federal Pell Grant Program $688,112 Yes 1
84.038 Federal Perkins Loan Program $291,499 Yes 0
84.007 Federal Supplemental Educational Opportunity Grants $81,322 Yes 0
84.033 Federal Work-Study Program $74,487 Yes 1
16.525 Grants to Reduce Domestic Violence, Dating Violence, Sexual Assault, and Stalking on Campus $45,809 - 0
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $8,489 Yes 0

Contacts

Name Title Type
NYL9LDWCYND9 Janice Blodgett Auditee
6177453724 Chris Pelland 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. De Minimis Rate Used: N Rate Explanation: The College has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of Eastern Nazarene College (the “College”) under programs of the Federal Government for the year ended June 30, 2023. The information on this Schedule is prepared 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 College, it is not intended to, and does not present, the financial position, changes in net assets or cash flows of the College.
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. De Minimis Rate Used: N Rate Explanation: The College has elected not to use the 10-percent de minimis indirect cost rate as 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.
Title: Indirect Cost Rate 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. De Minimis Rate Used: N Rate Explanation: The College has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The College has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: Federal 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. De Minimis Rate Used: N Rate Explanation: The College has elected not to use 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 basic financial statements. Loans outstanding at the beginning of the year and loans made during the year are included in the federal expenditures presented in the Schedule. There were no administrative costs incurred and the balance of loans outstanding at June 30, 2024 is $258,951.
Title: Federal 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. De Minimis Rate Used: N Rate Explanation: The College has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The College disbursed $2,398,479 of loans under the Federal Direct Student Loans program, which include Stafford Subsidized and Unsubsidized Loans and Parent Plus Loans. It is not practical to determine the balances of the loans outstanding to students of the College under the program as of June 30, 2024. The College is only responsible for the performance of certain administrative duties and, accordingly, these loans are not included in the College’s financial statements.

Finding Details

Finding 2024-001
Criteria According to 34 CFR 690.62(a): Calculation of a Federal Pell Grant: The amount of a student's Pell Grant for an academic year is based upon the payment and disbursement schedules published by the Secretary for each award year. According to 34 CFR 690.2(c): Annual award: The Federal Pell Grant award amount a full-time student would receive under the payment schedule for a full academic year in an award year, and the amount a three-quarter time, half-time, and less-than-half-time student would receive under the appropriate disbursement schedule for being enrolled in that enrollment status for a full academic year in an award year. Disbursement Schedule: A table showing the annual awards that three-quarter, half-time, and less-than-half-time students at term-based institutions using credit hours would receive for an academic year. This table is published annually by the Secretary and is based on: (1) A student's expected family contribution, as determined in accordance with Title IV, Part F of the HEA; and (2) A student's attendance costs as defined in Title IV, Part F of the HEA. (3) The amount of funds available for making Federal Pell Grants. Condition Federal regulations require institutions to award Federal Pell Grants in accordance with the appropriate disbursement schedule for three-quarter, half-time, and less-than-half-time students based on the students’ estimated financial contribution and cost of attendance. During our testing, we noted 1 student, out of a sample of 40, that were not awarded the proper amount of Pell Grant funds. Cause The College did not use the student’s correct Pell disbursement schedule when awarding the student Pell Grant funds. The student was awarded Pell Grant funds based on a cost of attendance of $3,400, however, the student’s cost of attendance was $10,420. Effect By using the incorrect enrollment status, the student was under awarded Federal Pell Grant funds. Questioned Costs Federal Pell Grant underpayment of $492.50. Perspective Our sample was not, and was not intended to be, statistically valid. Of the 40 students selected for testing, 1 student, or 2.5% of our sample, received incorrect Federal Pell Grant award. Identification as a Repeat Finding, if applicable Not applicable Recommendation We recommend that management of the College review, and if necessary, update, the policies and procedures for awarding aid and ensuring cost of attendances are correct to ensure Federal Pell Grant award amounts are properly calculated. Additionally, financial aid awards should be reviewed by management prior to disbursing funds to students. View of Responsible Officials The College agrees with the finding.
Finding 2024-002
Criteria The College has an informal policy to get signed agreements with students to document an understanding between both the College and student the terms of the work-study including position, pay rate and eligible earnings. Condition The College was unable to provide two work-study agreements as part of the single audit testing. Cause The College is in the process of winding down operations and while they believe they originally had the students fill out the agreements they were unable to be located the agreements because of the wind down process. Effect The College was unable to sufficiently document they followed their established internal control for federal work-study. Questioned Costs None Perspective Our sample was not, and was not intended to be, statistically valid. Of the four students selected for testing, two students, or 50% of our sample, had agreements that were not able to be located. Identification as a Repeat Finding, if applicable Not applicable Recommendation We recommend the College try and locate the agreements and ensure they are being properly maintained. View of Responsible Officials The College agrees with the finding.
Finding 2024-001
Criteria According to 34 CFR 690.62(a): Calculation of a Federal Pell Grant: The amount of a student's Pell Grant for an academic year is based upon the payment and disbursement schedules published by the Secretary for each award year. According to 34 CFR 690.2(c): Annual award: The Federal Pell Grant award amount a full-time student would receive under the payment schedule for a full academic year in an award year, and the amount a three-quarter time, half-time, and less-than-half-time student would receive under the appropriate disbursement schedule for being enrolled in that enrollment status for a full academic year in an award year. Disbursement Schedule: A table showing the annual awards that three-quarter, half-time, and less-than-half-time students at term-based institutions using credit hours would receive for an academic year. This table is published annually by the Secretary and is based on: (1) A student's expected family contribution, as determined in accordance with Title IV, Part F of the HEA; and (2) A student's attendance costs as defined in Title IV, Part F of the HEA. (3) The amount of funds available for making Federal Pell Grants. Condition Federal regulations require institutions to award Federal Pell Grants in accordance with the appropriate disbursement schedule for three-quarter, half-time, and less-than-half-time students based on the students’ estimated financial contribution and cost of attendance. During our testing, we noted 1 student, out of a sample of 40, that were not awarded the proper amount of Pell Grant funds. Cause The College did not use the student’s correct Pell disbursement schedule when awarding the student Pell Grant funds. The student was awarded Pell Grant funds based on a cost of attendance of $3,400, however, the student’s cost of attendance was $10,420. Effect By using the incorrect enrollment status, the student was under awarded Federal Pell Grant funds. Questioned Costs Federal Pell Grant underpayment of $492.50. Perspective Our sample was not, and was not intended to be, statistically valid. Of the 40 students selected for testing, 1 student, or 2.5% of our sample, received incorrect Federal Pell Grant award. Identification as a Repeat Finding, if applicable Not applicable Recommendation We recommend that management of the College review, and if necessary, update, the policies and procedures for awarding aid and ensuring cost of attendances are correct to ensure Federal Pell Grant award amounts are properly calculated. Additionally, financial aid awards should be reviewed by management prior to disbursing funds to students. View of Responsible Officials The College agrees with the finding.
Finding 2024-002
Criteria The College has an informal policy to get signed agreements with students to document an understanding between both the College and student the terms of the work-study including position, pay rate and eligible earnings. Condition The College was unable to provide two work-study agreements as part of the single audit testing. Cause The College is in the process of winding down operations and while they believe they originally had the students fill out the agreements they were unable to be located the agreements because of the wind down process. Effect The College was unable to sufficiently document they followed their established internal control for federal work-study. Questioned Costs None Perspective Our sample was not, and was not intended to be, statistically valid. Of the four students selected for testing, two students, or 50% of our sample, had agreements that were not able to be located. Identification as a Repeat Finding, if applicable Not applicable Recommendation We recommend the College try and locate the agreements and ensure they are being properly maintained. View of Responsible Officials The College agrees with the finding.