FAC Explorer

Audit 351759

FY End
2024-06-30
Total Expended
$40.19M
Findings
14
Programs
6
Organization: Newberry College (SC)
Year: 2024 Accepted: 2025-03-31
Auditor: Capincrouse LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
547579 2024-002 Material Weakness Yes N
547580 2024-003 Significant Deficiency Yes N
547581 2024-004 Significant Deficiency - E
547582 2024-006 - - N
547583 2024-002 Material Weakness Yes N
547584 2024-005 - Yes E
547585 2024-007 Significant Deficiency Yes N
1124021 2024-002 Material Weakness Yes N
1124022 2024-003 Significant Deficiency Yes N
1124023 2024-004 Significant Deficiency - E
1124024 2024-006 - - N
1124025 2024-002 Material Weakness Yes N
1124026 2024-005 - Yes E
1124027 2024-007 Significant Deficiency Yes N

Programs

ALN Program Spent Major Findings
10.766 Community Facilities Loans and Grants $24.20M Yes 1
84.268 Federal Direct Student Loans $11.30M Yes 4
84.063 Federal Pell Grant Program $4.43M Yes 2
84.007 Federal Supplemental Educational Opportunity Grants $157,021 Yes 0
84.033 Federal Work-Study Program $71,453 Yes 0
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $32,062 Yes 0

Contacts

Name Title Type
Y9JKLN3659V4 Joe Botana Auditee
8032765010 Logan Sharrett, CPA Auditor
No contacts on file

Notes to SEFA

Title: RELATIONSHIP TO FINANCIAL STATEMENTS Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Newberry College (College) under programs of the federal government for the year ended June 30, 2024. The information in the schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Expenditures in 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. 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. If the College is required to match certain federal assistance, as defined by the grant agreements, no such matching has been included as expenditures in the schedule. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. See the Notes to the SEFA for chart/table
Title: SUBRECIPIENTS, NON-CASH ASSISTANCE, AND FEDERAL INSURANCE Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Newberry College (College) under programs of the federal government for the year ended June 30, 2024. The information in the schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Expenditures in 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. 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. If the College is required to match certain federal assistance, as defined by the grant agreements, no such matching has been included as expenditures in the schedule. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The College did not provide any federal funds to subrecipients nor did they receive any federal non-cash assistance, or insurance.
Title: INSTITUTION ELIGIBILITY LIMITATIONS IN ACCORDANCE WITH 34 CFR 600.7(a)1 Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Newberry College (College) under programs of the federal government for the year ended June 30, 2024. The information in the schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Expenditures in 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. 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. If the College is required to match certain federal assistance, as defined by the grant agreements, no such matching has been included as expenditures in the schedule. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. To maintain institutional eligibility to participate in the Department of Education’s Title IV financial aid programs, the College is required to comply with 34 CFR 600.7(a)1 which limits the number of correspondence courses, the number of students enrolled in correspondence courses, the number of incarcerated students enrolled, and the number of students enrolled without a high school diploma or recognized equivalent. As part of the audit procedures, compliance with these limitations was tested. No non-compliance with the requirements was noted.
Title: U.S. DEPARTMENT OF AGRICULTURE COMMUNITY FACILITIES LOANS Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Newberry College (College) under programs of the federal government for the year ended June 30, 2024. The information in the schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Expenditures in 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. 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. If the College is required to match certain federal assistance, as defined by the grant agreements, no such matching has been included as expenditures in the schedule. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. See the Notes to the SEFA for chart/table

Finding Details

Finding 2024-002
Enrollment Reporting to NSLDS Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.268 and 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: The College did not report enrollment information to the National Student Loan Data System (NSLDS) in a timely and accurate manner. Criteria: 34 CFR 690.83(b) and 34 CFR 685.309 Questioned Costs: $0 Context: Out of 83 students tested, 35 students were not reported accurately to NSLDS. Twenty-six of these students showed "No Record Found," and the remaining 9 students still appeared enrolled after withdrawing/graduating in the Fall 2023 term. Cause: Timely reconciliations of enrollment statuses were not completed throughout the year. Effect: Inaccurate reporting can impact a student’s loan grace period in school deferment eligibility, beginning loan repayments, appropriate interest charges, etc. Identification as repeat finding, if applicable: 2023-007 Recommendation: We recommend the College put a system in place to ensure that withdrawn students are reported as withdrawn or graduated in NSLDS in a timely manner. We also recommend that the College complete reconciliations of enrollment status periodically and complete spot checks of enrollment statuses to NSLDS regularly to ensure any students appearing as "No Record Found" are updated. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-003
2024-003 Late Return of Title IV Funds (R2T4) Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268 Federal Award Identification #: 2023-2024 Award Year Condition: When students withdrew either officially or unofficially, the College did not always return unearned Title IV aid. Criteria: 34 CFR 668.22 Questioned Costs: $2,817 Context: Out of 26 students tested for timely return of Title IV funding, 2 students who withdrew before the 60% mark of the term did not have an R2T4 completed. This resulted in $2,817 of unsubsidized loans that need to be returned to the Department of Education. Cause: This was an oversight by the College. Effect: Returns of federal funding were not made. Identification as repeat finding, if applicable: 2023-002 Recommendation: We recommend the College review all students with zero credits in a term at the end of the term to determine if they unofficially withdrew and if a return was necessary. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-004
Need Analysis Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268 Federal Award Identification #: 2023-2024 Award Year Condition: Errors in need analysis for federal financial aid let to inaccurate awarding and disbursing need based federal financial aid. Criteria: 34 CFR 685.200(a) Questioned Costs: $7,568 Context: Out of 60 students, 3 students were not awarded aid appropriately based on need analysis. The first student received $3,000 in unsubsidized loans when they had additional subsidized loan eligibility to maximize before taking out unsubsidized loans. The second student was awarded $4,500 in subsidized loans in excess of need that should have been awarded as additional unsubsidized loans. The last student was over-awarded $68 in subsidized loans due to being over the aggregate subsidized loan limit. Cause: These errors were an oversight by the College. Effect: Incorrect allocation of subsidized loans versus unsubsidized loans affects the interest amount incurred by the student and could impact future loan eligibility. Additionally, students received subsidized federal aid for which they were not eligible. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend that the College set up reports in the student information system to periodically check for over or under awarding of need based federal aid. We also recommend that the student information system have notifications when updated ISIRs are received to review need analysis and update awarding as needed. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-006
Verification DEPARTMENT OF EDUCATION ALN #: 84.268 Federal Award Identification #: 2023-2024 Award Year Condition: As required under 34 CFR 668.56, for students who are flagged for verification, the College is required to obtain underlying tax and other information to verify that amounts are properly reported on the ISIR and correct the ISIR if there are discrepancies. Criteria: 34 CFR 668.56 Questioned Costs: $5,500 Context: There was one student out of a sample of 25 selected for verification for which the College was not able to locate underlying tax support or number in college/number in family as provided by the student and/or parent. Cause: Due to turnover and staffing challenges in the financial aid office, the support for this student was unable to be located. Effect: Need based aid is impacted directly by the results of verification. Identification as repeat finding, if applicable: Not applicable Recommendation: We recommend the College periodically review verification completed for students with need-based aid to ensure all required documentation is properly maintained. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-002
Enrollment Reporting to NSLDS Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.268 and 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: The College did not report enrollment information to the National Student Loan Data System (NSLDS) in a timely and accurate manner. Criteria: 34 CFR 690.83(b) and 34 CFR 685.309 Questioned Costs: $0 Context: Out of 83 students tested, 35 students were not reported accurately to NSLDS. Twenty-six of these students showed "No Record Found," and the remaining 9 students still appeared enrolled after withdrawing/graduating in the Fall 2023 term. Cause: Timely reconciliations of enrollment statuses were not completed throughout the year. Effect: Inaccurate reporting can impact a student’s loan grace period in school deferment eligibility, beginning loan repayments, appropriate interest charges, etc. Identification as repeat finding, if applicable: 2023-007 Recommendation: We recommend the College put a system in place to ensure that withdrawn students are reported as withdrawn or graduated in NSLDS in a timely manner. We also recommend that the College complete reconciliations of enrollment status periodically and complete spot checks of enrollment statuses to NSLDS regularly to ensure any students appearing as "No Record Found" are updated. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-005
Incorrect Pell Calculations DEPARTMENT OF EDUCATION ALN #: 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: Students were not always awarded the proper Pell Grant based on their enrollment level. Criteria: 34 CFR 690.63(b) Questioned Costs: $0 Context: Out of 36 students tested for proper Pell Grant awarding based on enrollment level, there were 3 students who were under-awarded Pell Grant for the Summer 2024 term. Cause: These errors were an oversight by the College. Effect: Pell Grant was not awarded correctly based on enrollment. Identification as repeat finding, if applicable: 2023-005, 2022-003 Recommendation: We recommend that the College review summer Pell Grant disbursements to ensure they reflect the student’s summer enrollment. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-007
USDA Community Facilities Loan Reserve Accounts Significant Deficiency U.S. DEPARTMENT OF AGRICULTURE ALN #: 10.766 Community Facilities Loans and Grants Cluster Federal Award Identification #: 0000009560402CFL, 0000009560403CFL, CPAP000000010077, GLSX0002562746, 0000008718001CFL Condition: Under multiple USDA Community Facilities loan agreements, the College is required to administer a loan reserve account in which monthly deposits are to be made for the first 10 years of the loan or until the loan minimum reserve amount is obtained. Criteria: 37 CFR 1942.17(i) Questioned Costs: $0 Context: The College was not properly administering the loan reserves as outlined in their USDA loan agreements. Cause: Due to changes in management since the loans originated, there was a lack of oversight of the continuing loan reserve requirements across the various loan agreements. Effect: The College did not make reserve contributions as required during the fiscal year ending June 30, 2024. Identification as repeat finding, if applicable: 2023-004, 2022-002 Recommendation: We recommend the College work with their USDA loan representative to understand their USDA loan reserve requirements for all active and future loan agreements. Additionally, the College should establish the minimum reserve funds that have not been established as of June 30, 2024, and make monthly payments to the reserve account, as outlined in their loan agreements. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-002
Enrollment Reporting to NSLDS Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.268 and 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: The College did not report enrollment information to the National Student Loan Data System (NSLDS) in a timely and accurate manner. Criteria: 34 CFR 690.83(b) and 34 CFR 685.309 Questioned Costs: $0 Context: Out of 83 students tested, 35 students were not reported accurately to NSLDS. Twenty-six of these students showed "No Record Found," and the remaining 9 students still appeared enrolled after withdrawing/graduating in the Fall 2023 term. Cause: Timely reconciliations of enrollment statuses were not completed throughout the year. Effect: Inaccurate reporting can impact a student’s loan grace period in school deferment eligibility, beginning loan repayments, appropriate interest charges, etc. Identification as repeat finding, if applicable: 2023-007 Recommendation: We recommend the College put a system in place to ensure that withdrawn students are reported as withdrawn or graduated in NSLDS in a timely manner. We also recommend that the College complete reconciliations of enrollment status periodically and complete spot checks of enrollment statuses to NSLDS regularly to ensure any students appearing as "No Record Found" are updated. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-003
2024-003 Late Return of Title IV Funds (R2T4) Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268 Federal Award Identification #: 2023-2024 Award Year Condition: When students withdrew either officially or unofficially, the College did not always return unearned Title IV aid. Criteria: 34 CFR 668.22 Questioned Costs: $2,817 Context: Out of 26 students tested for timely return of Title IV funding, 2 students who withdrew before the 60% mark of the term did not have an R2T4 completed. This resulted in $2,817 of unsubsidized loans that need to be returned to the Department of Education. Cause: This was an oversight by the College. Effect: Returns of federal funding were not made. Identification as repeat finding, if applicable: 2023-002 Recommendation: We recommend the College review all students with zero credits in a term at the end of the term to determine if they unofficially withdrew and if a return was necessary. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-004
Need Analysis Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268 Federal Award Identification #: 2023-2024 Award Year Condition: Errors in need analysis for federal financial aid let to inaccurate awarding and disbursing need based federal financial aid. Criteria: 34 CFR 685.200(a) Questioned Costs: $7,568 Context: Out of 60 students, 3 students were not awarded aid appropriately based on need analysis. The first student received $3,000 in unsubsidized loans when they had additional subsidized loan eligibility to maximize before taking out unsubsidized loans. The second student was awarded $4,500 in subsidized loans in excess of need that should have been awarded as additional unsubsidized loans. The last student was over-awarded $68 in subsidized loans due to being over the aggregate subsidized loan limit. Cause: These errors were an oversight by the College. Effect: Incorrect allocation of subsidized loans versus unsubsidized loans affects the interest amount incurred by the student and could impact future loan eligibility. Additionally, students received subsidized federal aid for which they were not eligible. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend that the College set up reports in the student information system to periodically check for over or under awarding of need based federal aid. We also recommend that the student information system have notifications when updated ISIRs are received to review need analysis and update awarding as needed. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-006
Verification DEPARTMENT OF EDUCATION ALN #: 84.268 Federal Award Identification #: 2023-2024 Award Year Condition: As required under 34 CFR 668.56, for students who are flagged for verification, the College is required to obtain underlying tax and other information to verify that amounts are properly reported on the ISIR and correct the ISIR if there are discrepancies. Criteria: 34 CFR 668.56 Questioned Costs: $5,500 Context: There was one student out of a sample of 25 selected for verification for which the College was not able to locate underlying tax support or number in college/number in family as provided by the student and/or parent. Cause: Due to turnover and staffing challenges in the financial aid office, the support for this student was unable to be located. Effect: Need based aid is impacted directly by the results of verification. Identification as repeat finding, if applicable: Not applicable Recommendation: We recommend the College periodically review verification completed for students with need-based aid to ensure all required documentation is properly maintained. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-002
Enrollment Reporting to NSLDS Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.268 and 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: The College did not report enrollment information to the National Student Loan Data System (NSLDS) in a timely and accurate manner. Criteria: 34 CFR 690.83(b) and 34 CFR 685.309 Questioned Costs: $0 Context: Out of 83 students tested, 35 students were not reported accurately to NSLDS. Twenty-six of these students showed "No Record Found," and the remaining 9 students still appeared enrolled after withdrawing/graduating in the Fall 2023 term. Cause: Timely reconciliations of enrollment statuses were not completed throughout the year. Effect: Inaccurate reporting can impact a student’s loan grace period in school deferment eligibility, beginning loan repayments, appropriate interest charges, etc. Identification as repeat finding, if applicable: 2023-007 Recommendation: We recommend the College put a system in place to ensure that withdrawn students are reported as withdrawn or graduated in NSLDS in a timely manner. We also recommend that the College complete reconciliations of enrollment status periodically and complete spot checks of enrollment statuses to NSLDS regularly to ensure any students appearing as "No Record Found" are updated. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-005
Incorrect Pell Calculations DEPARTMENT OF EDUCATION ALN #: 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: Students were not always awarded the proper Pell Grant based on their enrollment level. Criteria: 34 CFR 690.63(b) Questioned Costs: $0 Context: Out of 36 students tested for proper Pell Grant awarding based on enrollment level, there were 3 students who were under-awarded Pell Grant for the Summer 2024 term. Cause: These errors were an oversight by the College. Effect: Pell Grant was not awarded correctly based on enrollment. Identification as repeat finding, if applicable: 2023-005, 2022-003 Recommendation: We recommend that the College review summer Pell Grant disbursements to ensure they reflect the student’s summer enrollment. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2024-007
USDA Community Facilities Loan Reserve Accounts Significant Deficiency U.S. DEPARTMENT OF AGRICULTURE ALN #: 10.766 Community Facilities Loans and Grants Cluster Federal Award Identification #: 0000009560402CFL, 0000009560403CFL, CPAP000000010077, GLSX0002562746, 0000008718001CFL Condition: Under multiple USDA Community Facilities loan agreements, the College is required to administer a loan reserve account in which monthly deposits are to be made for the first 10 years of the loan or until the loan minimum reserve amount is obtained. Criteria: 37 CFR 1942.17(i) Questioned Costs: $0 Context: The College was not properly administering the loan reserves as outlined in their USDA loan agreements. Cause: Due to changes in management since the loans originated, there was a lack of oversight of the continuing loan reserve requirements across the various loan agreements. Effect: The College did not make reserve contributions as required during the fiscal year ending June 30, 2024. Identification as repeat finding, if applicable: 2023-004, 2022-002 Recommendation: We recommend the College work with their USDA loan representative to understand their USDA loan reserve requirements for all active and future loan agreements. Additionally, the College should establish the minimum reserve funds that have not been established as of June 30, 2024, and make monthly payments to the reserve account, as outlined in their loan agreements. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.