Audit 35792

FY End
2022-06-30
Total Expended
$50.03M
Findings
2
Programs
7
Organization: Limestone University (SC)
Year: 2022 Accepted: 2023-05-07

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
34525 2022-004 - - C
610967 2022-004 - - C

Programs

ALN Program Spent Major Findings
10.766 Community Facilities Loans and Grants $27.59M Yes 0
84.268 Federal Direct Student Loans $12.20M - 0
84.063 Federal Pell Grant Program $3.90M - 0
84.425 Education Stabilization Fund $2.89M Yes 1
84.007 Federal Supplemental Educational Opportunity Grants $212,885 - 0
84.033 Federal Work-Study Program $159,416 - 0
84.031 Higher Education_institutional Aid $30,720 - 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, 2022. 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: Higher Education Emergency Relief Fund 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 CARES Act created a Higher Education Emergency Relief Fund ("HEERF") to provide financial relief to students and institutions who were impacted by the COVID-19 pandemic. The Coronavirus Response and Relief Supplemental Appropriations Act (CRRSAA) and the American Rescue Plan (ARP) provided additional rounds of HEERF (II and III). The HEERF funds contained three components, an institutional award, a student aid award, and a strengthening institution program award. The following cumulative amounts have been awarded as HEERF as of June 30, 2022: See notes to the SEFA for chart/table. HERRF funds expended during the year ended June 30, 2022 are as follows: See notes to the SEFA for chart/table.

Finding Details

Finding 2022-004 ? Higher Education Emergency Relief Fund, CFDA# 84.425F Compliance Requirement: Cash Management Condition: Institutional Aid Portions of the Higher Education Emergency Relief Fund (?HEERF?) occurred before the funds were obligated. Criteria: Higher Education Emergency Relief Fund (?HEERF?) drawdowns should occur after the funds have been obligated. For lost revenue, the ?obligation? occurs on the date the institution completes its estimate of its amount of lost revenue after the estimation period. Cause: Lack of understanding by the University?s Vice President of Finance, Operations, and Administration. Context: The University?s lost revenue calculation for the year ended June 30, 2022 was calculated based on estimated lost revenue related to the year ended June 30, 2022. The institutional HEERF funds related to this lost revenue estimate were drawndown prior to the date the University completed its estimate of its amount of lost revenue. Effect: Lack of compliance with cash management compliance requirements. Recommendation: The University?s management should read and follow all HEERF program grant guidance regulations and guidelines. Management Response: The University concurs with this finding. Corrective Action Plan: See attached management?s corrective action plan.
Finding 2022-004 ? Higher Education Emergency Relief Fund, CFDA# 84.425F Compliance Requirement: Cash Management Condition: Institutional Aid Portions of the Higher Education Emergency Relief Fund (?HEERF?) occurred before the funds were obligated. Criteria: Higher Education Emergency Relief Fund (?HEERF?) drawdowns should occur after the funds have been obligated. For lost revenue, the ?obligation? occurs on the date the institution completes its estimate of its amount of lost revenue after the estimation period. Cause: Lack of understanding by the University?s Vice President of Finance, Operations, and Administration. Context: The University?s lost revenue calculation for the year ended June 30, 2022 was calculated based on estimated lost revenue related to the year ended June 30, 2022. The institutional HEERF funds related to this lost revenue estimate were drawndown prior to the date the University completed its estimate of its amount of lost revenue. Effect: Lack of compliance with cash management compliance requirements. Recommendation: The University?s management should read and follow all HEERF program grant guidance regulations and guidelines. Management Response: The University concurs with this finding. Corrective Action Plan: See attached management?s corrective action plan.