Audit 353450

FY End
2024-06-30
Total Expended
$15.57M
Findings
4
Programs
4
Organization: Lancaster Bible College (PA)
Year: 2024 Accepted: 2025-04-11

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
554887 2024-001 Significant Deficiency - C
554888 2024-001 Significant Deficiency - C
1131329 2024-001 Significant Deficiency - C
1131330 2024-001 Significant Deficiency - C

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $11.78M Yes 1
84.063 Federal Pell Grant Program $3.56M Yes 1
84.033 Federal Work-Study Program $122,541 Yes 0
84.007 Federal Supplemental Educational Opportunity Grants $117,128 Yes 0

Contacts

Name Title Type
NT9ZXAKM3CR3 Matthew Mason Auditee
7175608200 Harry Deverter Auditor
No contacts on file

Notes to SEFA

Title: INDIRECT COST RATE Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Lancaster Bible College (the “College”) and is presented on the accrual basis of accounting. The information in these schedules 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.” Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the general-purpose financial statements. De Minimis Rate Used: N Rate Explanation: The College did not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The College did not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Title: SUBRECIPIENTS Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Lancaster Bible College (the “College”) and is presented on the accrual basis of accounting. The information in these schedules 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.” Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the general-purpose financial statements. De Minimis Rate Used: N Rate Explanation: The College did not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The College did not pass any awards through to subrecipients.
Title: MATCHING CONTRIBUTIONS Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Lancaster Bible College (the “College”) and is presented on the accrual basis of accounting. The information in these schedules 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.” Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the general-purpose financial statements. De Minimis Rate Used: N Rate Explanation: The College did not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The amounts reported in the accompanying Schedule of Expenditures of Federal Awards do not include matching contributions made by the College. The College made matching contributions to the following federal awards: Federal Supplemental Educational Opportunity Grants $ 39,042 Federal Work-Study Program 41,561 $ 80,603
Title: FEDERAL DIRECT STUDENT LOANS Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Lancaster Bible College (the “College”) and is presented on the accrual basis of accounting. The information in these schedules 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.” Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the general-purpose financial statements. De Minimis Rate Used: N Rate Explanation: The College did not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The Federal Direct Student Loans (Federal ALN Number 84.268) are comprised of the following types of loans: Plus Loans $ 823,062 Stafford Loans 3,262,392 Unsubsidized Stafford Loans 7,693,133 Total Federal Direct Student Loans $ 11,778,587 Unsubsidized Stafford Loans 7,693,133 Total Federal Direct Student Loans $ 11,778,587

Finding Details

SECTION III Federal Award Findings and Questioned Costs 2024-001 Significant Deficiency – Federal Direct Loan Cash Management Programs: Federal Direct Loan Program, Pell Grant Program Assistance Listing Numbers: 84.268 and 84.007 Federal Award Identification Number: NT9ZXAKM3CR3 Federal Agency: U.S. Department of Education Federal Award Year: June 30, 2024 Condition: During the Spring semester, the College did not minimize the time between fund transfers and return of excess funds for drawdowns made from late January through February 2024. Criteria: The Advance Payment Method requires that the College disburse the requested funds no later than three business days following receipt of funds received from the Education Department. Context: A review of the entire population of drawdowns for the Student Financial Aid cluster for the entire year was performed and as such, the sample is statistically valid. Cause: The student information system used by the College malfunctioned in the creation of duplicate batches of awards for students. Students in duplicated batches (for which money had been drawn down) were now in new batches- resulting in overdrawn funds. Effect: The College did not refund excess funds drawn on a timely basis. It took them until May 2024 to fully research the system issues and make the necessary corrections and refunds. Questioned costs: $100,467 Recommendation: The College should review its procedures related to the request and disbursement of federal funds, including controls over compliance, to ensure they are following the advance payment method and establish controls to ensure it complies with the federal requirement. Views of Responsible Officials and Planned Corrective Actions: Management agrees with this finding and implemented a new tracking system in July 2024 for daily reconciliation of award batch detail along with specific individual training to ensure staff follows compliance responsibilities and understand the requirements of the program. The Controller and Financial Aid Director meet monthly to discuss any potential gaps in compliance.
SECTION III Federal Award Findings and Questioned Costs 2024-001 Significant Deficiency – Federal Direct Loan Cash Management Programs: Federal Direct Loan Program, Pell Grant Program Assistance Listing Numbers: 84.268 and 84.007 Federal Award Identification Number: NT9ZXAKM3CR3 Federal Agency: U.S. Department of Education Federal Award Year: June 30, 2024 Condition: During the Spring semester, the College did not minimize the time between fund transfers and return of excess funds for drawdowns made from late January through February 2024. Criteria: The Advance Payment Method requires that the College disburse the requested funds no later than three business days following receipt of funds received from the Education Department. Context: A review of the entire population of drawdowns for the Student Financial Aid cluster for the entire year was performed and as such, the sample is statistically valid. Cause: The student information system used by the College malfunctioned in the creation of duplicate batches of awards for students. Students in duplicated batches (for which money had been drawn down) were now in new batches- resulting in overdrawn funds. Effect: The College did not refund excess funds drawn on a timely basis. It took them until May 2024 to fully research the system issues and make the necessary corrections and refunds. Questioned costs: $100,467 Recommendation: The College should review its procedures related to the request and disbursement of federal funds, including controls over compliance, to ensure they are following the advance payment method and establish controls to ensure it complies with the federal requirement. Views of Responsible Officials and Planned Corrective Actions: Management agrees with this finding and implemented a new tracking system in July 2024 for daily reconciliation of award batch detail along with specific individual training to ensure staff follows compliance responsibilities and understand the requirements of the program. The Controller and Financial Aid Director meet monthly to discuss any potential gaps in compliance.
SECTION III Federal Award Findings and Questioned Costs 2024-001 Significant Deficiency – Federal Direct Loan Cash Management Programs: Federal Direct Loan Program, Pell Grant Program Assistance Listing Numbers: 84.268 and 84.007 Federal Award Identification Number: NT9ZXAKM3CR3 Federal Agency: U.S. Department of Education Federal Award Year: June 30, 2024 Condition: During the Spring semester, the College did not minimize the time between fund transfers and return of excess funds for drawdowns made from late January through February 2024. Criteria: The Advance Payment Method requires that the College disburse the requested funds no later than three business days following receipt of funds received from the Education Department. Context: A review of the entire population of drawdowns for the Student Financial Aid cluster for the entire year was performed and as such, the sample is statistically valid. Cause: The student information system used by the College malfunctioned in the creation of duplicate batches of awards for students. Students in duplicated batches (for which money had been drawn down) were now in new batches- resulting in overdrawn funds. Effect: The College did not refund excess funds drawn on a timely basis. It took them until May 2024 to fully research the system issues and make the necessary corrections and refunds. Questioned costs: $100,467 Recommendation: The College should review its procedures related to the request and disbursement of federal funds, including controls over compliance, to ensure they are following the advance payment method and establish controls to ensure it complies with the federal requirement. Views of Responsible Officials and Planned Corrective Actions: Management agrees with this finding and implemented a new tracking system in July 2024 for daily reconciliation of award batch detail along with specific individual training to ensure staff follows compliance responsibilities and understand the requirements of the program. The Controller and Financial Aid Director meet monthly to discuss any potential gaps in compliance.
SECTION III Federal Award Findings and Questioned Costs 2024-001 Significant Deficiency – Federal Direct Loan Cash Management Programs: Federal Direct Loan Program, Pell Grant Program Assistance Listing Numbers: 84.268 and 84.007 Federal Award Identification Number: NT9ZXAKM3CR3 Federal Agency: U.S. Department of Education Federal Award Year: June 30, 2024 Condition: During the Spring semester, the College did not minimize the time between fund transfers and return of excess funds for drawdowns made from late January through February 2024. Criteria: The Advance Payment Method requires that the College disburse the requested funds no later than three business days following receipt of funds received from the Education Department. Context: A review of the entire population of drawdowns for the Student Financial Aid cluster for the entire year was performed and as such, the sample is statistically valid. Cause: The student information system used by the College malfunctioned in the creation of duplicate batches of awards for students. Students in duplicated batches (for which money had been drawn down) were now in new batches- resulting in overdrawn funds. Effect: The College did not refund excess funds drawn on a timely basis. It took them until May 2024 to fully research the system issues and make the necessary corrections and refunds. Questioned costs: $100,467 Recommendation: The College should review its procedures related to the request and disbursement of federal funds, including controls over compliance, to ensure they are following the advance payment method and establish controls to ensure it complies with the federal requirement. Views of Responsible Officials and Planned Corrective Actions: Management agrees with this finding and implemented a new tracking system in July 2024 for daily reconciliation of award batch detail along with specific individual training to ensure staff follows compliance responsibilities and understand the requirements of the program. The Controller and Financial Aid Director meet monthly to discuss any potential gaps in compliance.