FAC Explorer

Audit 355294

FY End
2024-06-30
Total Expended
$1.08M
Findings
12
Programs
4
Organization: Manhattan Christian College (KS)
Year: 2024 Accepted: 2025-05-01
Auditor: Dana F Cole & Company LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
559026 2024-004 Significant Deficiency - E
559027 2024-003 Significant Deficiency - N
559028 2024-003 Significant Deficiency - N
559029 2024-003 Significant Deficiency - N
559030 2024-003 Significant Deficiency - N
559031 2024-005 Significant Deficiency - N
1135468 2024-004 Significant Deficiency - E
1135469 2024-003 Significant Deficiency - N
1135470 2024-003 Significant Deficiency - N
1135471 2024-003 Significant Deficiency - N
1135472 2024-003 Significant Deficiency - N
1135473 2024-005 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $676,108 Yes 2
84.063 Federal Pell Grant Program $333,283 Yes 2
84.033 Federal Work-Study Program $54,308 Yes 1
84.007 Federal Supplemental Educational Opportunity Grants $15,289 Yes 1

Contacts

Name Title Type
NZFHLUGNL337 Todd Lhuillier Auditee
7855393571 Kim Pearson, CPA Auditor
No contacts on file

Notes to SEFA

Title: HEIGHTENED CASH MONITORING COMPLIANCE Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal award activity of Manhattan Christian College and Affiliates. 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. The schedule of expenditures of federal awards is presented on the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The College did not elect to use the de minimis cost rate. The College is operating under the Provisional Certification Alternative for failure to meet the Department of Education’s standards of financial responsibility. The Organization must comply with all of the requirement specified for the Provisional Certification Alternative using the Zone Alternative. During the fiscal year ending June 30, 2024, the College was under the Heightened Cah Monitoring 1 (HCM 1). As part of the audit procedures, the College’s compliance with HCM 1 was tested, including the administration of the heightened cash monitoring payment methods, disbursing aid and paying out credit balances before requesting reimbursement of Title IV aid funds, and notification requirements. No noncompliance with the requirements was noted.

Finding Details

Finding 2024-004
ELIGIBILITY - PELL GRANT PROGRAM 84.063 Criteria Per 34 CFR 668.16(4)(c)(1), the College must administer Title IV, HEA programs with adequate checks and balances in its system of internal control. Condition and Context Of our sample of 51 student files, one case was noted where a student was eligible for a Pell grant in the fall semester, but was not awarded and disbursed. Cause The student enrolled in additional classes after the first day classes began and was not identified when awarding and disbursing Pell grant money for the Spring semester. Potential Effect The absence of adequate reviews of student awards could lead to improper awards and disbursements of Federal Financial Aid. Questioned Costs Known questioned costs were $3,697 and likely questioned costs were $5,738. Recommendation We recommend that the College perform an additional review of student awards to ensure information agrees with all other areas within the institution. We also recommend that the College correct the award package for the student for the recalculated difference in the award. Views of Responsible Officials and Planned Corrective Action The College will make the necessary correction to the student's award. Key staff turnover may have lead to not identifying this student as eligible for federal financial aid in the Fall semester. Review procedures will be conducted for student awards and disbursements to ensure accuracy for the next fiscal year.
Finding 2024-003
COMPLIANCE WITH CALCULATION OF COMPOSITE SCORE IN REGARD TO FINANCIAL RESPONSIBILITY Criteria Per 34 CFR 668.171 and 34 CFR.668.172, the College is required to obtain a composite score of at least 1.5. Condition and Context The calculation of the College's composite score, which is based on information provided in the audited financial statements, was calculated to be less than 1.5. Cause The College experienced a large unrestricted net loss during the current fiscal year, which was the primary cause in the reduction of the composite score. Potential Effect The College may be placed on heightened financial oversight related to its administration over federal financial aid programs. Questioned Costs None. Recommendation We recommend that the College work with the Department of Education, which may include reducing expenses necessary to reflect unrestricted activities from reporting expenses in excess of revenue and any other necessary requirements made from the Department of Education. Views of Responsible Officials and Planned Corrective Action The College is working to increase enrollment and adjusting the budget accordingly with available resources to reflect a positive net income from unrestricted operations.
Finding 2024-003
COMPLIANCE WITH CALCULATION OF COMPOSITE SCORE IN REGARD TO FINANCIAL RESPONSIBILITY Criteria Per 34 CFR 668.171 and 34 CFR.668.172, the College is required to obtain a composite score of at least 1.5. Condition and Context The calculation of the College's composite score, which is based on information provided in the audited financial statements, was calculated to be less than 1.5. Cause The College experienced a large unrestricted net loss during the current fiscal year, which was the primary cause in the reduction of the composite score. Potential Effect The College may be placed on heightened financial oversight related to its administration over federal financial aid programs. Questioned Costs None. Recommendation We recommend that the College work with the Department of Education, which may include reducing expenses necessary to reflect unrestricted activities from reporting expenses in excess of revenue and any other necessary requirements made from the Department of Education. Views of Responsible Officials and Planned Corrective Action The College is working to increase enrollment and adjusting the budget accordingly with available resources to reflect a positive net income from unrestricted operations.
Finding 2024-003
COMPLIANCE WITH CALCULATION OF COMPOSITE SCORE IN REGARD TO FINANCIAL RESPONSIBILITY Criteria Per 34 CFR 668.171 and 34 CFR.668.172, the College is required to obtain a composite score of at least 1.5. Condition and Context The calculation of the College's composite score, which is based on information provided in the audited financial statements, was calculated to be less than 1.5. Cause The College experienced a large unrestricted net loss during the current fiscal year, which was the primary cause in the reduction of the composite score. Potential Effect The College may be placed on heightened financial oversight related to its administration over federal financial aid programs. Questioned Costs None. Recommendation We recommend that the College work with the Department of Education, which may include reducing expenses necessary to reflect unrestricted activities from reporting expenses in excess of revenue and any other necessary requirements made from the Department of Education. Views of Responsible Officials and Planned Corrective Action The College is working to increase enrollment and adjusting the budget accordingly with available resources to reflect a positive net income from unrestricted operations.
Finding 2024-003
COMPLIANCE WITH CALCULATION OF COMPOSITE SCORE IN REGARD TO FINANCIAL RESPONSIBILITY Criteria Per 34 CFR 668.171 and 34 CFR.668.172, the College is required to obtain a composite score of at least 1.5. Condition and Context The calculation of the College's composite score, which is based on information provided in the audited financial statements, was calculated to be less than 1.5. Cause The College experienced a large unrestricted net loss during the current fiscal year, which was the primary cause in the reduction of the composite score. Potential Effect The College may be placed on heightened financial oversight related to its administration over federal financial aid programs. Questioned Costs None. Recommendation We recommend that the College work with the Department of Education, which may include reducing expenses necessary to reflect unrestricted activities from reporting expenses in excess of revenue and any other necessary requirements made from the Department of Education. Views of Responsible Officials and Planned Corrective Action The College is working to increase enrollment and adjusting the budget accordingly with available resources to reflect a positive net income from unrestricted operations.
Finding 2024-005
EXIT COUNSELING - FEDERAL DIRECT LOANS PROGRAM 84.268 Criteria Per 34 CFR 682.604(g), if a student borrower withdraws from school or fails to complete an exit counseling session, the College must provide exit counseling material to the student within 30 days after learning that the student is no longer at least a half time student. Condition and Context Of our sample of 51 student files, one case was noted where exit counseling information was not provided to the student within the required time frame. Cause A review of non-returning students did not identify this student as needing to be provided exit counseling materials. Potential Effect Students that are not provided with exit counseling materials may not be fully aware of their repayment responsibilities, which could result in additional defaults on the loan program. Questioned Costs None. Recommendation We recommend that the College departments conduct cross reviews of students that are no longer at least in half-time status to determine if exit counseling materials have been sent within the required time frame. Views of Responsible Officials and Planned Corrective Action The College will continue to adjust procedures as determined necessary to ensure that students are properly identified to provide them with exit counseling materials.
Finding 2024-004
ELIGIBILITY - PELL GRANT PROGRAM 84.063 Criteria Per 34 CFR 668.16(4)(c)(1), the College must administer Title IV, HEA programs with adequate checks and balances in its system of internal control. Condition and Context Of our sample of 51 student files, one case was noted where a student was eligible for a Pell grant in the fall semester, but was not awarded and disbursed. Cause The student enrolled in additional classes after the first day classes began and was not identified when awarding and disbursing Pell grant money for the Spring semester. Potential Effect The absence of adequate reviews of student awards could lead to improper awards and disbursements of Federal Financial Aid. Questioned Costs Known questioned costs were $3,697 and likely questioned costs were $5,738. Recommendation We recommend that the College perform an additional review of student awards to ensure information agrees with all other areas within the institution. We also recommend that the College correct the award package for the student for the recalculated difference in the award. Views of Responsible Officials and Planned Corrective Action The College will make the necessary correction to the student's award. Key staff turnover may have lead to not identifying this student as eligible for federal financial aid in the Fall semester. Review procedures will be conducted for student awards and disbursements to ensure accuracy for the next fiscal year.
Finding 2024-003
COMPLIANCE WITH CALCULATION OF COMPOSITE SCORE IN REGARD TO FINANCIAL RESPONSIBILITY Criteria Per 34 CFR 668.171 and 34 CFR.668.172, the College is required to obtain a composite score of at least 1.5. Condition and Context The calculation of the College's composite score, which is based on information provided in the audited financial statements, was calculated to be less than 1.5. Cause The College experienced a large unrestricted net loss during the current fiscal year, which was the primary cause in the reduction of the composite score. Potential Effect The College may be placed on heightened financial oversight related to its administration over federal financial aid programs. Questioned Costs None. Recommendation We recommend that the College work with the Department of Education, which may include reducing expenses necessary to reflect unrestricted activities from reporting expenses in excess of revenue and any other necessary requirements made from the Department of Education. Views of Responsible Officials and Planned Corrective Action The College is working to increase enrollment and adjusting the budget accordingly with available resources to reflect a positive net income from unrestricted operations.
Finding 2024-003
COMPLIANCE WITH CALCULATION OF COMPOSITE SCORE IN REGARD TO FINANCIAL RESPONSIBILITY Criteria Per 34 CFR 668.171 and 34 CFR.668.172, the College is required to obtain a composite score of at least 1.5. Condition and Context The calculation of the College's composite score, which is based on information provided in the audited financial statements, was calculated to be less than 1.5. Cause The College experienced a large unrestricted net loss during the current fiscal year, which was the primary cause in the reduction of the composite score. Potential Effect The College may be placed on heightened financial oversight related to its administration over federal financial aid programs. Questioned Costs None. Recommendation We recommend that the College work with the Department of Education, which may include reducing expenses necessary to reflect unrestricted activities from reporting expenses in excess of revenue and any other necessary requirements made from the Department of Education. Views of Responsible Officials and Planned Corrective Action The College is working to increase enrollment and adjusting the budget accordingly with available resources to reflect a positive net income from unrestricted operations.
Finding 2024-003
COMPLIANCE WITH CALCULATION OF COMPOSITE SCORE IN REGARD TO FINANCIAL RESPONSIBILITY Criteria Per 34 CFR 668.171 and 34 CFR.668.172, the College is required to obtain a composite score of at least 1.5. Condition and Context The calculation of the College's composite score, which is based on information provided in the audited financial statements, was calculated to be less than 1.5. Cause The College experienced a large unrestricted net loss during the current fiscal year, which was the primary cause in the reduction of the composite score. Potential Effect The College may be placed on heightened financial oversight related to its administration over federal financial aid programs. Questioned Costs None. Recommendation We recommend that the College work with the Department of Education, which may include reducing expenses necessary to reflect unrestricted activities from reporting expenses in excess of revenue and any other necessary requirements made from the Department of Education. Views of Responsible Officials and Planned Corrective Action The College is working to increase enrollment and adjusting the budget accordingly with available resources to reflect a positive net income from unrestricted operations.
Finding 2024-003
COMPLIANCE WITH CALCULATION OF COMPOSITE SCORE IN REGARD TO FINANCIAL RESPONSIBILITY Criteria Per 34 CFR 668.171 and 34 CFR.668.172, the College is required to obtain a composite score of at least 1.5. Condition and Context The calculation of the College's composite score, which is based on information provided in the audited financial statements, was calculated to be less than 1.5. Cause The College experienced a large unrestricted net loss during the current fiscal year, which was the primary cause in the reduction of the composite score. Potential Effect The College may be placed on heightened financial oversight related to its administration over federal financial aid programs. Questioned Costs None. Recommendation We recommend that the College work with the Department of Education, which may include reducing expenses necessary to reflect unrestricted activities from reporting expenses in excess of revenue and any other necessary requirements made from the Department of Education. Views of Responsible Officials and Planned Corrective Action The College is working to increase enrollment and adjusting the budget accordingly with available resources to reflect a positive net income from unrestricted operations.
Finding 2024-005
EXIT COUNSELING - FEDERAL DIRECT LOANS PROGRAM 84.268 Criteria Per 34 CFR 682.604(g), if a student borrower withdraws from school or fails to complete an exit counseling session, the College must provide exit counseling material to the student within 30 days after learning that the student is no longer at least a half time student. Condition and Context Of our sample of 51 student files, one case was noted where exit counseling information was not provided to the student within the required time frame. Cause A review of non-returning students did not identify this student as needing to be provided exit counseling materials. Potential Effect Students that are not provided with exit counseling materials may not be fully aware of their repayment responsibilities, which could result in additional defaults on the loan program. Questioned Costs None. Recommendation We recommend that the College departments conduct cross reviews of students that are no longer at least in half-time status to determine if exit counseling materials have been sent within the required time frame. Views of Responsible Officials and Planned Corrective Action The College will continue to adjust procedures as determined necessary to ensure that students are properly identified to provide them with exit counseling materials.