Audit 38149

FY End

2022-06-30

Total Expended

$3.64M

Findings

4

Programs

3

Organization: Valor Christian College (OH)

Year: 2022 Accepted: 2023-02-15

Auditor: Sikich LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
28617	2022-001	Material Weakness	-	A
30016	2022-002	Material Weakness	-	I
605059	2022-001	Material Weakness	-	A
606458	2022-002	Material Weakness	-	I

ALN	Program	Spent	Major
84.268	Federal Direct Student Loans	$1.89M	Yes
84.063	Federal Pell Grant Program	$949,978	Yes
84.425	Education Stabilization Fund	$638,610	Yes

Contacts

Name	Title	Type
JZ64U6ZQ9RX8	Joe Dilgard	Auditee
8009409422	Ray Krouse	Auditor
No contacts on file

Notes to SEFA

Title: FEDERAL LOAN PROGRAM Accounting Policies: The accompanying schedule of expenditures of federal awards is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. For the year ended June 30, 2022, Valor Christian College acted as a pass-through agency for Direct Federal Stafford Loans (subsidized, unsubsidized and PLUS) to students and parents in the amount of $1,887,203.

Title: OTHER INFORMATION Accounting Policies: The accompanying schedule of expenditures of federal awards is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Valor Christian College did not receive any federal insurance or federal noncash assistance and did not provide any amounts to sub-recipients.

Finding Details

Finding 2022-001

FINDING 2022-001: UNALLOWABLE QUESTIONED COSTS FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION PROGRAM NAME: HEERF CLUSTER ALN: 84.425 FEDERAL AWARD YEAR: 2021-2022 Compliance Requirement: Activities Allowed and Unallowed (A.) Criteria: An Institution must demonstrate that costs incurred are allowable under the relevant statutory provisions. Allowable costs must be necessary and reasonable for the performance of the federal award and be allocable thereto under the principles in 2 C.F.R. part 200, subpart E. Condition: The Institution charged unallowable costs to the Institution portion of the grant. We consider this finding to be a material weakness. Cause: The condition was caused by administrative oversight. Effect or Potential Effect: The result is that the Institution expended unallowable costs. Statistical sampling was not used when making sample selections. Questioned Costs: $73,594 Recommendation: We recommend the Institution strengthen its internal controls around the allowable. Views of Responsible Officials: The College agrees with the Single Audit Finding and a response is included in the Corrective Action Plan. See Schedule of Findings and Questioned Costs for chart/table.

Finding 2022-002

FINDING 2022-002: INSUFFICIENT PROCUREMENT POLICY FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION PROGRAM NAME: HEERF CLUSTER ALN: 84.425 FEDERAL AWARD YEAR: 2021-2022 Compliance Requirement: Procurement and Suspension and Debarment (I.) Criteria: An Institution must have procurement policies that comply with the compliance requirements included in 2 C.F.R. 200.318 through 200.326. Condition: The Institution failed to implement all of the required procurement policies noted above. We consider this finding to be a material weakness. Cause: The condition was caused by administrative oversight. Effect or Potential Effect: The result is that the Institution could be expending funds that do not meet the compliance requirements included in 2 C.F.R. 200.318 through 200.326. Statistical sampling was not used when making sample selections. Questioned Costs: $0 Recommendation: We recommend the Institution develop and implement the required procurement policies. Views of Responsible Officials: The College agrees with the Single Audit Finding and a response is included in the Corrective Action Plan. See Schedule of Findings and Questioned Costs for chart/table.

Finding 2022-001

FINDING 2022-001: UNALLOWABLE QUESTIONED COSTS FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION PROGRAM NAME: HEERF CLUSTER ALN: 84.425 FEDERAL AWARD YEAR: 2021-2022 Compliance Requirement: Activities Allowed and Unallowed (A.) Criteria: An Institution must demonstrate that costs incurred are allowable under the relevant statutory provisions. Allowable costs must be necessary and reasonable for the performance of the federal award and be allocable thereto under the principles in 2 C.F.R. part 200, subpart E. Condition: The Institution charged unallowable costs to the Institution portion of the grant. We consider this finding to be a material weakness. Cause: The condition was caused by administrative oversight. Effect or Potential Effect: The result is that the Institution expended unallowable costs. Statistical sampling was not used when making sample selections. Questioned Costs: $73,594 Recommendation: We recommend the Institution strengthen its internal controls around the allowable. Views of Responsible Officials: The College agrees with the Single Audit Finding and a response is included in the Corrective Action Plan. See Schedule of Findings and Questioned Costs for chart/table.

Finding 2022-002

FINDING 2022-002: INSUFFICIENT PROCUREMENT POLICY FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION PROGRAM NAME: HEERF CLUSTER ALN: 84.425 FEDERAL AWARD YEAR: 2021-2022 Compliance Requirement: Procurement and Suspension and Debarment (I.) Criteria: An Institution must have procurement policies that comply with the compliance requirements included in 2 C.F.R. 200.318 through 200.326. Condition: The Institution failed to implement all of the required procurement policies noted above. We consider this finding to be a material weakness. Cause: The condition was caused by administrative oversight. Effect or Potential Effect: The result is that the Institution could be expending funds that do not meet the compliance requirements included in 2 C.F.R. 200.318 through 200.326. Statistical sampling was not used when making sample selections. Questioned Costs: $0 Recommendation: We recommend the Institution develop and implement the required procurement policies. Views of Responsible Officials: The College agrees with the Single Audit Finding and a response is included in the Corrective Action Plan. See Schedule of Findings and Questioned Costs for chart/table.