Audit 36276

FY End
2022-06-30
Total Expended
$1.33M
Findings
4
Programs
1
Year: 2022 Accepted: 2022-11-21

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
37009 2022-002 Material Weakness Yes N
37010 2022-003 Significant Deficiency Yes N
613451 2022-002 Material Weakness Yes N
613452 2022-003 Significant Deficiency Yes N

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $1.33M Yes 2

Contacts

Name Title Type
QLSNHX3RVNNS Jeff Swenson Auditee
6512556113 Brian Barsi Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: 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. The Seminary has elected not to use the 10-percent de minimus indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of United Theological Seminary of the Twin Cities (the Seminary) under programs of the federal government for the year ended June 30, 2022. The information in this schedule is presented in accordance with 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 Seminary, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Seminary.

Finding Details

Finding - Special Tests and Provisions: Enrollment Reporting - Federal Direct Student Loans, Assistance Listing Number 84.268; June 30, 2022 Award Year, U.S. Department of Education Criteria or Specific Requirement Changes in enrollment to less than half time, graduated or withdrawn must be reported to National Student Loan Data System within 30 days. However, if a roster file is expected within 60 days of the status change, a school may provide the data on that roster file. Because enrollment changes must be reported within 30 days, or there is a chance that not all scheduled rosters will fulfill this requirement; ad hoc reporting can fulfill this requirement. (National Student Loan Data System Enrollment Reporting Guide, November 2020, page 6.) (34 CFR 682.610(c)(1)-(c)(2)) Condition and Context Of the three students within the sample of students tested that had status changes, all were reported to NSLDS outside of the required timeline, and two were reported to NSLDS inaccurately subsequent to the 2021-2022 fiscal year. Cause Due to a failure to follow controls, the requirement to submit status changes and roster information to the NSLDS was not met. As such, this information was not reported during the 2021-2022 fiscal year. Effect or Potential Effect The NSLDS System was not updated within the proper timeframe, thus the Seminary was out of compliance with the NSLDS reporting provisions. Questioned Costs None noted. Identification as a Repeat Finding This is a repeat finding. Recommendation We recommend procedures be implemented to include the review of scheduled submissions to NSLDS for the purpose of ensuring accurate reporting and identifying any time gaps that could violate reporting requirements. A Seminary representative should be tasked with reviewing all scheduled submissions to NSLDS. Views of Responsible Officials and Planned Corrective Actions See Corrective Action Plan.
Finding - Special Tests and Provisions: Borrower Transmission Data - Federal Direct Student Loans, Assistance Listing Number 84.268. June 30, 2022 Award Year, U.S. Department of Education Criteria or Specific Requirement Colleges must report all loan disbursements and submit required records to the Direct Loan Servicing System (?DLSS?) via the Common Origination and Disbursement (?COD?) within 30 days of disbursement. Disbursement dates and amounts in the DLSS must be supported by the Seminary?s records (34 CFR sections 685.102(b), 685.301 and 303). The date of disbursement determines when a student becomes a federal student aid (?FSA?) recipient and has the rights and responsibilities of an FSA recipient. A disbursement occurs when the college credits a student?s account or pays a student or parent directly with: ? FSA program funds received from the Department; ? FSA program funds received from a Direct Loan lender, or ? Seminary funds labeled as FSA program funds in advance of receiving actual FSA program funds. (Student Financial Aid Handbook, Volume 4, Chapter 1, pages 4-9) Condition and Context Out of thirteen students selected for testing, one student had a date reported to COD outside of the required timeframe. Cause Due to staff turnover and a failure to follow controls, the Seminary did not report to COD with timely data following disbursement to student accounts. Effect or Potential Effect Delayed reporting of disbursement dates affect accurate administration of loan period start and end dates. Questioned Costs None noted. Identification as a Repeat Finding This is a repeat finding. Recommendation Following each disbursement, the Financial Aid Office should review and agree COD data to student accounts data to ensure accurate and timely reporting of borrower information. Views of Responsible Officials and Planned Corrective Actions See Corrective Action Plan.
Finding - Special Tests and Provisions: Enrollment Reporting - Federal Direct Student Loans, Assistance Listing Number 84.268; June 30, 2022 Award Year, U.S. Department of Education Criteria or Specific Requirement Changes in enrollment to less than half time, graduated or withdrawn must be reported to National Student Loan Data System within 30 days. However, if a roster file is expected within 60 days of the status change, a school may provide the data on that roster file. Because enrollment changes must be reported within 30 days, or there is a chance that not all scheduled rosters will fulfill this requirement; ad hoc reporting can fulfill this requirement. (National Student Loan Data System Enrollment Reporting Guide, November 2020, page 6.) (34 CFR 682.610(c)(1)-(c)(2)) Condition and Context Of the three students within the sample of students tested that had status changes, all were reported to NSLDS outside of the required timeline, and two were reported to NSLDS inaccurately subsequent to the 2021-2022 fiscal year. Cause Due to a failure to follow controls, the requirement to submit status changes and roster information to the NSLDS was not met. As such, this information was not reported during the 2021-2022 fiscal year. Effect or Potential Effect The NSLDS System was not updated within the proper timeframe, thus the Seminary was out of compliance with the NSLDS reporting provisions. Questioned Costs None noted. Identification as a Repeat Finding This is a repeat finding. Recommendation We recommend procedures be implemented to include the review of scheduled submissions to NSLDS for the purpose of ensuring accurate reporting and identifying any time gaps that could violate reporting requirements. A Seminary representative should be tasked with reviewing all scheduled submissions to NSLDS. Views of Responsible Officials and Planned Corrective Actions See Corrective Action Plan.
Finding - Special Tests and Provisions: Borrower Transmission Data - Federal Direct Student Loans, Assistance Listing Number 84.268. June 30, 2022 Award Year, U.S. Department of Education Criteria or Specific Requirement Colleges must report all loan disbursements and submit required records to the Direct Loan Servicing System (?DLSS?) via the Common Origination and Disbursement (?COD?) within 30 days of disbursement. Disbursement dates and amounts in the DLSS must be supported by the Seminary?s records (34 CFR sections 685.102(b), 685.301 and 303). The date of disbursement determines when a student becomes a federal student aid (?FSA?) recipient and has the rights and responsibilities of an FSA recipient. A disbursement occurs when the college credits a student?s account or pays a student or parent directly with: ? FSA program funds received from the Department; ? FSA program funds received from a Direct Loan lender, or ? Seminary funds labeled as FSA program funds in advance of receiving actual FSA program funds. (Student Financial Aid Handbook, Volume 4, Chapter 1, pages 4-9) Condition and Context Out of thirteen students selected for testing, one student had a date reported to COD outside of the required timeframe. Cause Due to staff turnover and a failure to follow controls, the Seminary did not report to COD with timely data following disbursement to student accounts. Effect or Potential Effect Delayed reporting of disbursement dates affect accurate administration of loan period start and end dates. Questioned Costs None noted. Identification as a Repeat Finding This is a repeat finding. Recommendation Following each disbursement, the Financial Aid Office should review and agree COD data to student accounts data to ensure accurate and timely reporting of borrower information. Views of Responsible Officials and Planned Corrective Actions See Corrective Action Plan.