Audit 357660

FY End
2024-08-31
Total Expended
$46.07M
Findings
6
Programs
17
Organization: Roosevelt University (IL)
Year: 2024 Accepted: 2025-05-30
Auditor: Crowe LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
562061 2024-002 Significant Deficiency - N
562062 2024-002 Significant Deficiency - N
562063 2024-002 Significant Deficiency - N
1138503 2024-002 Significant Deficiency - N
1138504 2024-002 Significant Deficiency - N
1138505 2024-002 Significant Deficiency - N

Contacts

Name Title Type
FH92NMVB8XL6 Arlene Regnerus Auditee
3123413628 Brian Zygmunt Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Roosevelt University (“Roosevelt”) under programs of the federal government for the year ended August 31, 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). 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. De Minimis Rate Used: N Rate Explanation: Roosevelt has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. 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. Basis of Presentation: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Roosevelt University (“Roosevelt”) under programs of the federal government for the year ended August 31, 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). 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. Roosevelt has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. 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. Because the Schedule presents only a selected portion of the operations of Roosevelt, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Roosevelt. Nature of Program: By definition, the programs are federally funded. As such, funding is at the discretion of the federal government. However, management of Roosevelt believes that none of the funding is to be discontinued except for normal completion of programs.
Title: NOTE 2 - FEDERAL LOAN PROGRAMS Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Roosevelt University (“Roosevelt”) under programs of the federal government for the year ended August 31, 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). 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. De Minimis Rate Used: N Rate Explanation: Roosevelt has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. 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. Roosevelt disbursed funds under the Federal Direct Loan Program (including Parent PLUS Loans) during the current year. Roosevelt does not administer any other loan programs.
Title: NOTE 3 - RECONCILIATION OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS TO THE STATEMENT OF ACTIVITIES Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Roosevelt University (“Roosevelt”) under programs of the federal government for the year ended August 31, 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). 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. De Minimis Rate Used: N Rate Explanation: Roosevelt has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. 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. The following is a reconciliation of total expenditures reported on the accompanying Schedule to the revenue items shown as Federal, state and local grants and contracts revenue on the Statement of Activities included in University’s financial statements. For financial statement purposes, Pell grants are not reflected in the Statement of Activities. Roosevelt records Pell grants received by students through University as intermediary transactions, and not a grant. Therefore, Pell expenditures are presented below as federal funds for student financial assistance but are not reported as expenditures of Roosevelt. These expenditures are subtracted from the total expenditures on the Schedule to agree with revenue on the Statement of Activities. Reconciling items between the total expenditures on the Schedule and the federal grants and contracts revenue on the Statement of Activities are as follows: Total expenditures on the Schedule of Expenditures of Federal Awards $46,069,164 Federal funds for student financial assistance not reported as revenue of University (8,988,074) Federal Direct Loan (33,035,167) Other 665,900 Total University federal grants and contracts revenue shown on the Consolidating Statement of Activities $ 4,711,823

Finding Details

Finding 2024-002 – Disbursements for Student Financial Assistance Cluster (Significant Deficiency) Information on the federal program: Federal Direct Loan Program, ALN 84.268 Criteria: 34 CFR 685.303(g), Treatment of excess loan proceeds. Condition: University awarded Subsidized Federal Direct Loans to one student in excess of their Subsidized Federal Direct Loan eligibility, and therefore did not comply with all requirements associated with excess loan proceeds. Cause: The Student Financial Aid Department awarded a scholarship to a student which reduced the student's overall Subsidized Federal Direct Loan eligibility. The excess Subsidized Direct Loan award was not replaced with Unsubsidized Federal Direct Loans. Effect: Errors were made during the calculations of eligible aid causing an overaward of Subsidized Federal Direct Loans. Questioned costs: $2,931 Context: During review of the Special Tests and Provisions disbursement testing, it was noted a portion of the Subsidized Federal Direct Loan was awarded in excess of the student’s eligibility for one student. The excess funds should have been reallocated to Unsubsidized Federal Direct Loans upon the awarding of a scholarship to the student. Identification as a repeat finding: No Recommendation: We recommend University enhance its Student Financial Aid procedures by implementing post-scholarship eligibility checks to recalculate Subsidized Federal Direct Loan limits and automatically reallocate any excess funds to Unsubsidized Federal Direct Loans. Views of responsible officials and planned corrective actions: Management agrees with the finding and has prepared a Corrective Action Plan. The Plan is now in place.
Finding 2024-002 – Disbursements for Student Financial Assistance Cluster (Significant Deficiency) Information on the federal program: Federal Direct Loan Program, ALN 84.268 Criteria: 34 CFR 685.303(g), Treatment of excess loan proceeds. Condition: University awarded Subsidized Federal Direct Loans to one student in excess of their Subsidized Federal Direct Loan eligibility, and therefore did not comply with all requirements associated with excess loan proceeds. Cause: The Student Financial Aid Department awarded a scholarship to a student which reduced the student's overall Subsidized Federal Direct Loan eligibility. The excess Subsidized Direct Loan award was not replaced with Unsubsidized Federal Direct Loans. Effect: Errors were made during the calculations of eligible aid causing an overaward of Subsidized Federal Direct Loans. Questioned costs: $2,931 Context: During review of the Special Tests and Provisions disbursement testing, it was noted a portion of the Subsidized Federal Direct Loan was awarded in excess of the student’s eligibility for one student. The excess funds should have been reallocated to Unsubsidized Federal Direct Loans upon the awarding of a scholarship to the student. Identification as a repeat finding: No Recommendation: We recommend University enhance its Student Financial Aid procedures by implementing post-scholarship eligibility checks to recalculate Subsidized Federal Direct Loan limits and automatically reallocate any excess funds to Unsubsidized Federal Direct Loans. Views of responsible officials and planned corrective actions: Management agrees with the finding and has prepared a Corrective Action Plan. The Plan is now in place.
Finding 2024-002 – Disbursements for Student Financial Assistance Cluster (Significant Deficiency) Information on the federal program: Federal Direct Loan Program, ALN 84.268 Criteria: 34 CFR 685.303(g), Treatment of excess loan proceeds. Condition: University awarded Subsidized Federal Direct Loans to one student in excess of their Subsidized Federal Direct Loan eligibility, and therefore did not comply with all requirements associated with excess loan proceeds. Cause: The Student Financial Aid Department awarded a scholarship to a student which reduced the student's overall Subsidized Federal Direct Loan eligibility. The excess Subsidized Direct Loan award was not replaced with Unsubsidized Federal Direct Loans. Effect: Errors were made during the calculations of eligible aid causing an overaward of Subsidized Federal Direct Loans. Questioned costs: $2,931 Context: During review of the Special Tests and Provisions disbursement testing, it was noted a portion of the Subsidized Federal Direct Loan was awarded in excess of the student’s eligibility for one student. The excess funds should have been reallocated to Unsubsidized Federal Direct Loans upon the awarding of a scholarship to the student. Identification as a repeat finding: No Recommendation: We recommend University enhance its Student Financial Aid procedures by implementing post-scholarship eligibility checks to recalculate Subsidized Federal Direct Loan limits and automatically reallocate any excess funds to Unsubsidized Federal Direct Loans. Views of responsible officials and planned corrective actions: Management agrees with the finding and has prepared a Corrective Action Plan. The Plan is now in place.
Finding 2024-002 – Disbursements for Student Financial Assistance Cluster (Significant Deficiency) Information on the federal program: Federal Direct Loan Program, ALN 84.268 Criteria: 34 CFR 685.303(g), Treatment of excess loan proceeds. Condition: University awarded Subsidized Federal Direct Loans to one student in excess of their Subsidized Federal Direct Loan eligibility, and therefore did not comply with all requirements associated with excess loan proceeds. Cause: The Student Financial Aid Department awarded a scholarship to a student which reduced the student's overall Subsidized Federal Direct Loan eligibility. The excess Subsidized Direct Loan award was not replaced with Unsubsidized Federal Direct Loans. Effect: Errors were made during the calculations of eligible aid causing an overaward of Subsidized Federal Direct Loans. Questioned costs: $2,931 Context: During review of the Special Tests and Provisions disbursement testing, it was noted a portion of the Subsidized Federal Direct Loan was awarded in excess of the student’s eligibility for one student. The excess funds should have been reallocated to Unsubsidized Federal Direct Loans upon the awarding of a scholarship to the student. Identification as a repeat finding: No Recommendation: We recommend University enhance its Student Financial Aid procedures by implementing post-scholarship eligibility checks to recalculate Subsidized Federal Direct Loan limits and automatically reallocate any excess funds to Unsubsidized Federal Direct Loans. Views of responsible officials and planned corrective actions: Management agrees with the finding and has prepared a Corrective Action Plan. The Plan is now in place.
Finding 2024-002 – Disbursements for Student Financial Assistance Cluster (Significant Deficiency) Information on the federal program: Federal Direct Loan Program, ALN 84.268 Criteria: 34 CFR 685.303(g), Treatment of excess loan proceeds. Condition: University awarded Subsidized Federal Direct Loans to one student in excess of their Subsidized Federal Direct Loan eligibility, and therefore did not comply with all requirements associated with excess loan proceeds. Cause: The Student Financial Aid Department awarded a scholarship to a student which reduced the student's overall Subsidized Federal Direct Loan eligibility. The excess Subsidized Direct Loan award was not replaced with Unsubsidized Federal Direct Loans. Effect: Errors were made during the calculations of eligible aid causing an overaward of Subsidized Federal Direct Loans. Questioned costs: $2,931 Context: During review of the Special Tests and Provisions disbursement testing, it was noted a portion of the Subsidized Federal Direct Loan was awarded in excess of the student’s eligibility for one student. The excess funds should have been reallocated to Unsubsidized Federal Direct Loans upon the awarding of a scholarship to the student. Identification as a repeat finding: No Recommendation: We recommend University enhance its Student Financial Aid procedures by implementing post-scholarship eligibility checks to recalculate Subsidized Federal Direct Loan limits and automatically reallocate any excess funds to Unsubsidized Federal Direct Loans. Views of responsible officials and planned corrective actions: Management agrees with the finding and has prepared a Corrective Action Plan. The Plan is now in place.
Finding 2024-002 – Disbursements for Student Financial Assistance Cluster (Significant Deficiency) Information on the federal program: Federal Direct Loan Program, ALN 84.268 Criteria: 34 CFR 685.303(g), Treatment of excess loan proceeds. Condition: University awarded Subsidized Federal Direct Loans to one student in excess of their Subsidized Federal Direct Loan eligibility, and therefore did not comply with all requirements associated with excess loan proceeds. Cause: The Student Financial Aid Department awarded a scholarship to a student which reduced the student's overall Subsidized Federal Direct Loan eligibility. The excess Subsidized Direct Loan award was not replaced with Unsubsidized Federal Direct Loans. Effect: Errors were made during the calculations of eligible aid causing an overaward of Subsidized Federal Direct Loans. Questioned costs: $2,931 Context: During review of the Special Tests and Provisions disbursement testing, it was noted a portion of the Subsidized Federal Direct Loan was awarded in excess of the student’s eligibility for one student. The excess funds should have been reallocated to Unsubsidized Federal Direct Loans upon the awarding of a scholarship to the student. Identification as a repeat finding: No Recommendation: We recommend University enhance its Student Financial Aid procedures by implementing post-scholarship eligibility checks to recalculate Subsidized Federal Direct Loan limits and automatically reallocate any excess funds to Unsubsidized Federal Direct Loans. Views of responsible officials and planned corrective actions: Management agrees with the finding and has prepared a Corrective Action Plan. The Plan is now in place.