FAC Explorer

Audit 39340

FY End
2022-05-31
Total Expended
$72.90M
Findings
4
Programs
20
Organization: High Point University (NC)
Year: 2022 Accepted: 2023-02-23
Auditor: Smith Leonard PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
43155 2022-002 - Yes N
43156 2022-001 - Yes C
619597 2022-002 - Yes N
619598 2022-001 - Yes C

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $59.80M Yes 0
84.425 Education Stabilization Fund $3.43M Yes 0
84.063 Federal Pell Grant Program $2.71M Yes 0
64.028 Post-9/11 Veterans Educational Assistance $2.23M Yes 0
84.336 Teacher Quality Partnership Grants $863,950 Yes 0
84.033 Federal Work-Study Program $300,904 Yes 1
84.007 Federal Supplemental Educational Opportunity Grants $241,688 Yes 0
93.279 Drug Abuse and Addiction Research Programs $239,973 Yes 0
47.049 Mathematical and Physical Sciences $181,329 Yes 0
93.866 Aging Research $108,207 Yes 0
10.310 Agriculture and Food Research Initiative (afri) $35,364 Yes 0
43.001 Science $25,675 Yes 0
93.859 Biomedical Research and Research Training $24,336 Yes 0
47.075 Social, Behavioral, and Economic Sciences $13,607 Yes 0
47.074 Biological Sciences $7,470 Yes 0
12.750 Uniformed Services University Medical Research Projects $6,143 Yes 0
84.408 Postsecondary Education Scholarships for Veteran's Dependents $6,125 Yes 0
94.013 Volunteers in Service to America $4,265 Yes 0
47.076 Education and Human Resources $1,382 Yes 0
84.032 Federal Family Education Loan $0 - 1

Contacts

Name Title Type
Z2AEQJNCQPK6 Deborah McClintock Auditee
3368419202 Jeremy Hiatt Auditor
No contacts on file

Notes to SEFA

Accounting Policies: Expenditures for Federal Student Financial Assistance Cluster are recognized as incurred and include the federal share of students FSEOG program grants and FWS program earnings, Pell grants, and certain other federal financial aid grants for students and loan disbursements, where applicable. Expenditures for research and development and other federal awards are determined using the cost principles contained in the Uniform Guidance (2 CFR, Part 220). Under these cost principles and administrative requirements, certain expenditures are not allowable or are limited as to reimbursement. Expenditures for federal and state award programs are recognized as incurred. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 910, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Uniform Guidance, and State Single Audit Implementation Act, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-002
Information on Federal Program - Federal Work-Study Program Assistance Listing Number 84.033 Criteria ? Compliance Requirement N ? Special Tests and Provisions ? Institutions are required to verify students are not earning Federal Work-Study program financial aid during scheduled class time. Condition ? During our testing of the Federal Work-Study program, we noted the following: ? For 5 students sampled, the University was unable to verify the student was not earning Federal Work-Study Financial Aid during scheduled class time. Cause ? Management oversight in the Federal Work-Study program, resulting in 5 students appearing to work during scheduled class time. Effect ? The student was not in compliance with the Federal Work-Study program guidelines. Questioned Costs ? $1,277 Context ? We found 5 exceptions as noted in the condition, which resulted in the students not being in compliance with the program rules. Indication of a Repeat Finding ? This is a repeat finding 2021-002 from prior year. Recommendation ? We recommend the University ensure its policies and procedures are followed on a consistent basis regarding the Federal Work-Study Program. Views of Responsible Officials ? The University has always emphasized to students working on campus, regardless of whether their job is funded by the Federal Work-Study program or by the institution, and student supervisors that students should not be working during scheduled class hours.
Finding 2022-001
Information on Federal Program - Federal Family Education Loans Assistance Listing Number 84.032 Criteria ? Compliance Requirement C ? Cash Management ? The University must return all excess cash received from the U.S. Department of Education in a timely manner, if funds are not credited to an enrolled student?s account within 3 business days following the receipt of funds. Condition ? During the audit, we noted the following: ? The University has approximately $388,000 of excess cash held in a segregated federal funds cash account which relates to awards from prior years. Cause ? Prior management?s lack of oversight of student financial aid in prior years. The lack of proper oversight resulted in excess cash received from third party awarding agencies which was not properly refunded, causing the University to have excess cash on hand. Effect ? The University has excess cash on hand and was not in compliance with cash management requirements; however, the University has the funds properly held in an identifiable federal funds cash account, as they are currently investigating the best way to refund the excess cash. Questioned Costs ? None. Context ? We reviewed cash received and expended in a prior year, noting the University has additional funds on hand from prior awarding years. All current year funds were properly received and disbursed with no excess cash on hand from the current year. Indication of a Repeat Finding ? This is a repeat finding 2021-001 from prior year. Recommendation ? We recommend the University work with current and prior awarding agencies to determine the appropriate course of action to return the excess cash on hand. Views of Responsible Officials ? The cash balance of federal financial aid funds is not from the currently audited year but from many years ago. Because these funds go back to when the schools processed federal loans through the FFELP program, it has been difficult to reconcile these funds to the multiple lending institutions from which they came; some of which are no longer in existence. The University has taken great care not to comingle these funds and has protected them from being spent.
Finding 2022-002
Information on Federal Program - Federal Work-Study Program Assistance Listing Number 84.033 Criteria ? Compliance Requirement N ? Special Tests and Provisions ? Institutions are required to verify students are not earning Federal Work-Study program financial aid during scheduled class time. Condition ? During our testing of the Federal Work-Study program, we noted the following: ? For 5 students sampled, the University was unable to verify the student was not earning Federal Work-Study Financial Aid during scheduled class time. Cause ? Management oversight in the Federal Work-Study program, resulting in 5 students appearing to work during scheduled class time. Effect ? The student was not in compliance with the Federal Work-Study program guidelines. Questioned Costs ? $1,277 Context ? We found 5 exceptions as noted in the condition, which resulted in the students not being in compliance with the program rules. Indication of a Repeat Finding ? This is a repeat finding 2021-002 from prior year. Recommendation ? We recommend the University ensure its policies and procedures are followed on a consistent basis regarding the Federal Work-Study Program. Views of Responsible Officials ? The University has always emphasized to students working on campus, regardless of whether their job is funded by the Federal Work-Study program or by the institution, and student supervisors that students should not be working during scheduled class hours.
Finding 2022-001
Information on Federal Program - Federal Family Education Loans Assistance Listing Number 84.032 Criteria ? Compliance Requirement C ? Cash Management ? The University must return all excess cash received from the U.S. Department of Education in a timely manner, if funds are not credited to an enrolled student?s account within 3 business days following the receipt of funds. Condition ? During the audit, we noted the following: ? The University has approximately $388,000 of excess cash held in a segregated federal funds cash account which relates to awards from prior years. Cause ? Prior management?s lack of oversight of student financial aid in prior years. The lack of proper oversight resulted in excess cash received from third party awarding agencies which was not properly refunded, causing the University to have excess cash on hand. Effect ? The University has excess cash on hand and was not in compliance with cash management requirements; however, the University has the funds properly held in an identifiable federal funds cash account, as they are currently investigating the best way to refund the excess cash. Questioned Costs ? None. Context ? We reviewed cash received and expended in a prior year, noting the University has additional funds on hand from prior awarding years. All current year funds were properly received and disbursed with no excess cash on hand from the current year. Indication of a Repeat Finding ? This is a repeat finding 2021-001 from prior year. Recommendation ? We recommend the University work with current and prior awarding agencies to determine the appropriate course of action to return the excess cash on hand. Views of Responsible Officials ? The cash balance of federal financial aid funds is not from the currently audited year but from many years ago. Because these funds go back to when the schools processed federal loans through the FFELP program, it has been difficult to reconcile these funds to the multiple lending institutions from which they came; some of which are no longer in existence. The University has taken great care not to comingle these funds and has protected them from being spent.