FAC Explorer

Audit 356016

FY End
2024-06-30
Total Expended
$45.13M
Findings
6
Programs
7
Organization: Limestone University (SC)
Year: 2024 Accepted: 2025-05-12
Auditor: Cherry Bekaert LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
560072 2024-002 - Yes N
560073 2024-002 - Yes N
560074 2024-003 - Yes P
1136514 2024-002 - Yes N
1136515 2024-002 - Yes N
1136516 2024-003 - Yes P

Programs

ALN Program Spent Major Findings
10.766 Community Facilities Loans and Grants $27.59M Yes 1
84.268 Federal Direct Student Loans $12.07M Yes 1
84.063 Federal Pell Grant Program $4.25M Yes 1
84.116 Fund for the Improvement of Postsecondary Education $532,611 Yes 0
84.031 Higher Education Institutional Aid $246,683 - 0
84.007 Federal Supplemental Educational Opportunity Grants $157,460 Yes 0
84.033 Federal Work-Study Program $145,769 Yes 0

Contacts

Name Title Type
ZE7BFE5NNDC3 Jeremy Whitaker Auditee
8644884539 Roselle Bonnoitt Auditor
No contacts on file

Notes to SEFA

Title: Note 1—Basis of presentation Accounting Policies: Basis of Accounting – 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Indirect Cost Rate – The University has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Limestone University (the “University”) 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 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 University, it is not intended to and does not present the statements of financial position, activities, and cash flows of the University.
Title: Note 3—Federal Direct Student Loans Accounting Policies: Basis of Accounting – 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Indirect Cost Rate – The University has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The Federal Direct Student Loan program provides loan capital directly from the federal government (rather than through private lenders) to vocational, undergraduate, and graduate students and their parents. The loans are made directly from the federal government; therefore, there is no loan balance recorded at the University level.
Title: Note 4—USDA Loan Program Accounting Policies: Basis of Accounting – 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Indirect Cost Rate – The University has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The federal financial assistance from the U.S. Department of Agriculture (the “USDA”), Community Facilities Loans and Grants program, is in the form of interest bearing loans to be repaid in accordance with the terms of the agreements. Loans outstanding at the beginning of the year and loans made during the year are included in the expenditures of federal awards presented in the Schedule. The balance of USDA loans outstanding at the end of the audit period with compliance requirements included in the Schedule total $27,217,666.
Title: Note 5—Waiver of institutional share requirements Accounting Policies: Basis of Accounting – 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Indirect Cost Rate – The University has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The University received a waiver of institutional share requirements for the Federal Work-Study Program and the Federal Supplemental Educational Opportunity Grants from the United States Department of Education for the 2023-2024 award year.

Finding Details

Finding 2024-002
Finding 2024-002 – Student Financial Aid Cluster, Assistance Listing # 84.063 and 84.268 Compliance Requirement: Special Test and Provisions – Enrollment Reporting Condition: The University did not send changes in attendance levels, graduated, withdrew, dropped out, or enrolled changes to the National Student Loan Data System (“NSLDS”) within 60 days of the change. Criteria: The University is required to send changes in attendance levels, graduated, withdrew, dropped out, or enrolled changes to the NSLDS within 60 days of the change. Cause: The University had not reported changes of statuses of students to the NSLDS as required under the Uniform Grant Guidance for the year ended June 30, 2024. The status information reported in the University’s system, Jenzabar, was incorrectly extracted for the submission to the National Student Clearinghouse and NSLDS, which created discrepancies between the statuses. The University did not have another monitoring mechanism in place that would have alerted them to this deficiency in the system reporting. Context: The University sent six changes related to graduated students to the NSLDS with incorrect statuses and updated the status after 60 days. Additionally, the University submitted the status change related to one withdrawn student after 60 days. Effect: The University did not report status changes to the NSLDS accurately or timely. Recommendation: The University should put in place a process to timely capture status changes so that they can be reported to the NSLDS. Management Response: The University concurs with this finding. Corrective Action Plan: See attached management’s corrective action plan.
Finding 2024-002
Finding 2024-002 – Student Financial Aid Cluster, Assistance Listing # 84.063 and 84.268 Compliance Requirement: Special Test and Provisions – Enrollment Reporting Condition: The University did not send changes in attendance levels, graduated, withdrew, dropped out, or enrolled changes to the National Student Loan Data System (“NSLDS”) within 60 days of the change. Criteria: The University is required to send changes in attendance levels, graduated, withdrew, dropped out, or enrolled changes to the NSLDS within 60 days of the change. Cause: The University had not reported changes of statuses of students to the NSLDS as required under the Uniform Grant Guidance for the year ended June 30, 2024. The status information reported in the University’s system, Jenzabar, was incorrectly extracted for the submission to the National Student Clearinghouse and NSLDS, which created discrepancies between the statuses. The University did not have another monitoring mechanism in place that would have alerted them to this deficiency in the system reporting. Context: The University sent six changes related to graduated students to the NSLDS with incorrect statuses and updated the status after 60 days. Additionally, the University submitted the status change related to one withdrawn student after 60 days. Effect: The University did not report status changes to the NSLDS accurately or timely. Recommendation: The University should put in place a process to timely capture status changes so that they can be reported to the NSLDS. Management Response: The University concurs with this finding. Corrective Action Plan: See attached management’s corrective action plan.
Finding 2024-003
Finding 2024-003 – U.S. Department of Agriculture – Community Facilities Loan and Grant, Assistance Listing # 10.766 Compliance Requirement: Other Information Condition: U.S. Department of Agriculture (“USDA”) covenants and requirements were not adhered to. Criteria: Borrowers are required to fund reserves, maintain insurance, deposit funds in Federally insured banks, meet financial covenants, maintain sufficient debt service ratios, and in some cases comply with additional requirements established as part of the loan approval process. These requirements indicate the continuing compliance requirements that borrowers must meet. Cause: The University had turnover in the business department and non-quantitative requirements were not closely monitored. Context: The University did not meet the all the requirements per the USDA loan agreement dated as of December 16, 2021. The following requirements were not met during the fiscal year ended June 30, 2024: - Internally produced financial statements within 45 days (Article V, 5.8 (b)) - Compliance certificate (Article V, 5.8 (c)) - Budget provided 30 days prior to the beginning of the new fiscal year (Article V, 5.8 (d)) - Student housing rent roll (Article V, 5.16) Effect: Lack of compliance with loan covenants and requirements. Recommendation: The University’s management should read and follow all USDA loan covenants and requirements. Management Response: The University concurs with this finding. Corrective Action Plan: See attached management’s corrective action plan.
Finding 2024-002
Finding 2024-002 – Student Financial Aid Cluster, Assistance Listing # 84.063 and 84.268 Compliance Requirement: Special Test and Provisions – Enrollment Reporting Condition: The University did not send changes in attendance levels, graduated, withdrew, dropped out, or enrolled changes to the National Student Loan Data System (“NSLDS”) within 60 days of the change. Criteria: The University is required to send changes in attendance levels, graduated, withdrew, dropped out, or enrolled changes to the NSLDS within 60 days of the change. Cause: The University had not reported changes of statuses of students to the NSLDS as required under the Uniform Grant Guidance for the year ended June 30, 2024. The status information reported in the University’s system, Jenzabar, was incorrectly extracted for the submission to the National Student Clearinghouse and NSLDS, which created discrepancies between the statuses. The University did not have another monitoring mechanism in place that would have alerted them to this deficiency in the system reporting. Context: The University sent six changes related to graduated students to the NSLDS with incorrect statuses and updated the status after 60 days. Additionally, the University submitted the status change related to one withdrawn student after 60 days. Effect: The University did not report status changes to the NSLDS accurately or timely. Recommendation: The University should put in place a process to timely capture status changes so that they can be reported to the NSLDS. Management Response: The University concurs with this finding. Corrective Action Plan: See attached management’s corrective action plan.
Finding 2024-002
Finding 2024-002 – Student Financial Aid Cluster, Assistance Listing # 84.063 and 84.268 Compliance Requirement: Special Test and Provisions – Enrollment Reporting Condition: The University did not send changes in attendance levels, graduated, withdrew, dropped out, or enrolled changes to the National Student Loan Data System (“NSLDS”) within 60 days of the change. Criteria: The University is required to send changes in attendance levels, graduated, withdrew, dropped out, or enrolled changes to the NSLDS within 60 days of the change. Cause: The University had not reported changes of statuses of students to the NSLDS as required under the Uniform Grant Guidance for the year ended June 30, 2024. The status information reported in the University’s system, Jenzabar, was incorrectly extracted for the submission to the National Student Clearinghouse and NSLDS, which created discrepancies between the statuses. The University did not have another monitoring mechanism in place that would have alerted them to this deficiency in the system reporting. Context: The University sent six changes related to graduated students to the NSLDS with incorrect statuses and updated the status after 60 days. Additionally, the University submitted the status change related to one withdrawn student after 60 days. Effect: The University did not report status changes to the NSLDS accurately or timely. Recommendation: The University should put in place a process to timely capture status changes so that they can be reported to the NSLDS. Management Response: The University concurs with this finding. Corrective Action Plan: See attached management’s corrective action plan.
Finding 2024-003
Finding 2024-003 – U.S. Department of Agriculture – Community Facilities Loan and Grant, Assistance Listing # 10.766 Compliance Requirement: Other Information Condition: U.S. Department of Agriculture (“USDA”) covenants and requirements were not adhered to. Criteria: Borrowers are required to fund reserves, maintain insurance, deposit funds in Federally insured banks, meet financial covenants, maintain sufficient debt service ratios, and in some cases comply with additional requirements established as part of the loan approval process. These requirements indicate the continuing compliance requirements that borrowers must meet. Cause: The University had turnover in the business department and non-quantitative requirements were not closely monitored. Context: The University did not meet the all the requirements per the USDA loan agreement dated as of December 16, 2021. The following requirements were not met during the fiscal year ended June 30, 2024: - Internally produced financial statements within 45 days (Article V, 5.8 (b)) - Compliance certificate (Article V, 5.8 (c)) - Budget provided 30 days prior to the beginning of the new fiscal year (Article V, 5.8 (d)) - Student housing rent roll (Article V, 5.16) Effect: Lack of compliance with loan covenants and requirements. Recommendation: The University’s management should read and follow all USDA loan covenants and requirements. Management Response: The University concurs with this finding. Corrective Action Plan: See attached management’s corrective action plan.