Audit 397073

FY End
2025-06-30
Total Expended
$70.44M
Findings
9
Programs
73
Organization: South Carolina State University (SC)
Year: 2025 Accepted: 2026-03-31
Auditor: BDO USA PC

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
1205372 2025-003 Material Weakness Yes L
1205373 2025-001 Material Weakness Yes N
1205374 2025-001 Material Weakness Yes N
1205375 2025-001 Material Weakness Yes N
1205376 2025-001 Material Weakness Yes N
1205377 2025-002 Material Weakness Yes N
1205378 2025-002 Material Weakness Yes N
1205379 2025-002 Material Weakness Yes N
1205380 2025-002 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
84.268 FEDERAL DIRECT STUDENT LOANS $25.23M Yes 2
84.063 FEDERAL PELL GRANT PROGRAM $14.32M Yes 2
84.031 HIGHER EDUCATION INSTITUTIONAL AID $6.69M Yes 0
10.205 PAYMENTS TO 1890 LAND-GRANT COLLEGES AND TUSKEGEE UNIVERSITY $3.28M Yes 0
10.512 EXTENSION SERVICES AT 1890 COLLEGES AND TUSKEGEE UNIVERSITY, WEST VIRGINIA STATE COLLEGE, AND CENTRAL STATE UNIVERSITY $2.82M Yes 0
10.912 ENVIRONMENTAL QUALITY INCENTIVES PROGRAM $2.70M Yes 0
81.137 MINORITY ECONOMIC IMPACT $1.33M Yes 0
10.237 FROM LEARNING TO LEADING: CULTIVATING THE NEXT GENERATION OF DIVERSE FOOD AND AGRICULTURE PROFESSIONALS $1.15M Yes 1
20.237 MOTOR CARRIER SAFETY ASSISTANCE HIGH PRIORITY ACTIVITIES GRANTS AND COOPERATIVE AGREEMENTS $973,200 Yes 0
93.516 PUBLIC HEALTH TRAINING CENTERS PROGRAM $859,813 Yes 0
10.524 SCHOLARSHIPS FOR STUDENTS AT 1890 INSTITUTIONS $688,693 Yes 0
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $676,982 Yes 2
10.937 PARTNERSHIPS FOR CLIMATE-SMART COMMODITIES $562,560 Yes 0
84.382 STRENGTHENING MINORITY-SERVING INSTITUTIONS $507,502 Yes 0
81.RD Department of Energy $500,651 Yes 0
84.263 INNOVATIVE REHABILITATION TRAINING $455,858 Yes 0
93.391 ACTIVITIES TO SUPPORT STATE, TRIBAL, LOCAL AND TERRITORIAL (STLT) HEALTH DEPARTMENT RESPONSE TO PUBLIC HEALTH OR HEALTHCARE CRISES $359,047 Yes 0
10.514 EXPANDED FOOD AND NUTRITION EDUCATION PROGRAM $341,856 Yes 0
81.RD Office of Environmental Management $332,906 Yes 0
84.042 TRIO STUDENT SUPPORT SERVICES $320,710 Yes 0
10.902 SOIL AND WATER CONSERVATION $307,855 Yes 0
20.701 UNIVERSITY TRANSPORTATION CENTERS PROGRAM $297,818 Yes 0
59.037 SMALL BUSINESS DEVELOPMENT CENTERS $291,379 Yes 0
84.425 EDUCATION STABILIZATION FUND $260,803 Yes 0
93.U01 Department of Health and Human Services $258,417 Yes 0
10.443 OUTREACH AND ASSISTANCE FOR SOCIALLY DISADVANTAGED AND VETERAN FARMERS AND RANCHERS $249,622 Yes 0
84.033 FEDERAL WORK-STUDY PROGRAM $248,287 Yes 2
10.902 ENVIRONMENTAL QUALITY INCENTIVES PROGRAM $235,393 Yes 0
84.032 FEDERAL FAMILY EDUCATION LOANS $231,674 Yes 0
93.959 BLOCK GRANTS FOR PREVENTION AND TREATMENT OF SUBSTANCE ABUSE $214,261 Yes 0
59.059 CONGRESSIONAL GRANTS $195,587 Yes 0
84.129 REHABILITATION LONG-TERM TRAINING $182,231 Yes 0
47.049 MATHEMATICAL AND PHYSICAL SCIENCES $179,107 Yes 0
10.760 WATER AND WASTE DISPOSAL SYSTEMS FOR RURAL COMMUNITIES $163,583 Yes 0
10.311 BEGINNING FARMER AND RANCHER DEVELOPMENT PROGRAM $156,545 Yes 0
93.397 CANCER CENTERS SUPPORT GRANTS $144,120 Yes 0
81.113 DEFENSE NUCLEAR NONPROLIFERATION RESEARCH $133,564 Yes 0
10.351 RURAL BUSINESS DEVELOPMENT GRANT $129,096 Yes 0
93.398 CANCER RESEARCH MANPOWER $124,036 Yes 0
10.561 STATE ADMINISTRATIVE MATCHING GRANTS FOR THE SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM $105,351 Yes 0
84.264 REHABILITATION TRAINING TECHNICAL ASSISTANCE CENTERS $101,204 Yes 0
10.525 FARM AND RANCH STRESS ASSISTANCE NETWORK COMPETITIVE GRANTS PROGRAM $94,053 Yes 0
12.U01 U.S. DEPARTMENT OF DEFENSE $79,943 Yes 0
84.116 FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDUCATION $73,902 Yes 0
81.049 OFFICE OF SCIENCE FINANCIAL ASSISTANCE PROGRAM $66,877 Yes 0
10.727 INFLATION REDUCTION ACT URBAN & COMMUNITY FORESTRY PROGRAM $64,339 Yes 0
84.325 SPECIAL EDUCATION - PERSONNEL DEVELOPMENT TO IMPROVE SERVICES AND RESULTS FOR CHILDREN WITH DISABILITIES $63,630 Yes 0
10.216 1890 INSTITUTION CAPACITY BUILDING GRANTS $62,215 Yes 0
84.120 MINORITY SCIENCE AND ENGINEERING IMPROVEMENT $52,572 Yes 0
10.500 COOPERATIVE EXTENSION SERVICE $50,955 Yes 0
47.083 INTEGRATIVE ACTIVITIES $48,344 Yes 0
15.904 HISTORIC PRESERVATION FUND GRANTS-IN-AID $42,037 Yes 0
77.007 U.S. NUCLEAR REGULATORY COMMISSION MINORITY SERVING INSTITUTIONS PROGRAM (MSIP) $37,571 Yes 0
10.523 CENTERS OF EXCELLENCE AT 1890 INSTITUTIONS $34,108 Yes 0
84.027 SPECIAL EDUCATION GRANTS TO STATES $29,007 Yes 0
84.334 GAINING EARLY AWARENESS AND READINESS FOR UNDERGRADUATE PROGRAMS $28,029 Yes 0
93.350 NATIONAL CENTER FOR ADVANCING TRANSLATIONAL SCIENCES $24,538 Yes 0
47.084 NSF TECHNOLOGY, INNOVATION, AND PARTNERSHIPS $22,746 Yes 0
12.330 SCIENCE, TECHNOLOGY, ENGINEERING & MATHEMATICS (STEM) EDUCATION, OUTREACH AND WORKFORCE PROGRAM $19,572 Yes 0
10.328 FOOD SAFETY OUTREACH PROGRAM $18,308 Yes 0
10.868 RURAL ENERGY FOR AMERICA PROGRAM $14,933 Yes 0
10.515 RENEWABLE RESOURCES EXTENSION ACT $12,725 Yes 0
47.050 GEOSCIENCES $11,130 Yes 0
10.170 SPECIALTY CROP BLOCK GRANT PROGRAM - FARM BILL $11,006 Yes 0
10.025 PLANT AND ANIMAL DISEASE, PEST CONTROL, AND ANIMAL CARE $10,979 Yes 0
12.598 CENTERS FOR ACADEMIC EXCELLENCE $2,439 Yes 0
10.001 AGRICULTURAL RESEARCH BASIC AND APPLIED RESEARCH $2,416 Yes 0
47.076 STEM EDUCATION (FORMERLY EDUCATION AND HUMAN RESOURCES) $2,347 Yes 0
81.RD Office of Energy Efficiency and Renewable Energy $1,200 Yes 0
16.607 BULLETPROOF VEST PARTNERSHIP PROGRAM $817 Yes 0
12.800 AIR FORCE DEFENSE RESEARCH SCIENCES PROGRAM $506 Yes 0
81.104 ENVIRONMENTAL REMEDIATION AND WASTE PROCESSING AND DISPOSAL $30 Yes 0
84.038 FEDERAL PERKINS LOAN PROGRAM_FEDERAL CAPITAL CONTRIBUTIONS $0 Yes 0

Contacts

Name Title Type
JHM2PHX82EM7 Gerald Smalls Auditee
8035368455 Stathis Poulos Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of South Carolina State University (the “University”) under programs of the federal government for the year ended June 30, 2025. 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 financial position, changes in net position, or cash flows of the University.
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 University has elected not to use the 10­percent de minimis indirect cost rate allowed under the Uniform Guidance.
The Federal Perkins Loan Program is administered directly by the University and balances and transactions are included in of the University's financial statements. The balance of loans outstanding under the Federal Perkins Loan Program (Federal Assistance Listing Number 84.038) was $0 as of June 30, 2025. The University disbursed $0 under the Federal Perkins Loan Program for the year ended June 30, 2025. The University’s Federal Perkins Loans Program was liquidated during the year ended June 30, 2025.
During the fiscal year ended June 30, 2025, the University processed and expended $25,228,723 of new loans under the Federal Direct Student Loan Program. The University is responsible only for the performance of certain administrative duties with respect to the Federal Direct Student Loan Program and, accordingly, these loans are not included on the University’s financial statements; furthermore, it is not practical to determine the balance of loans outstanding to students and former students of the University under these programs at June 30, 2025.

Finding Details

Finding 2025-003 – L. Reporting – Special Reports for Federal Funding Accountability and Transparency Act (“FFATA”) Information on Federal Program(s) – From Learning to Leading: Cultivating the Next Generation of Diverse Food and Agriculture Professionals (ALN 10.237) Criteria or Specific Requirement – Under the requirements of the Federal Funding Accountability and Transparency Act recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to System for Award Management (SAM.gov). The subaward/subcontract was subject to reporting under the Transparency Act and therefore any related subaward agreements/amendments/modifications were to be reported in SAM.gov no later than the last day of the month following the month in which the subaward/subaward amendment obligation was made or the subcontract award/subcontract modification was made. Additionally, the Uniform Guidance in 2 CFR Section 200.303, Internal Controls, requires that non-Federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal controls designed to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition – The subaward agreement/amendment/modification was not submitted within the required time frame. Cause - Administrative oversight and insufficient internal controls. Effect or Potential Effect – The subaward agreement was not submitted within the required time frames resulting in the University not being in compliance with special reporting requirements. Questioned Costs – None. Context – We tested the one subaward subject to FFATA requirements during the year. The University did not submit the subaward agreement within the required time frame on SAM.gov. Indication of Repeat Finding – No similar finding noted in the prior year. Recommendation – We recommend that the University enhance its procedures and internal controls related to subrecipient reporting. Views of Responsible Officials – The University acknowledges Finding 2025-003 regarding noncompliance with reporting requirements under the Federal Funding Accountability and Transparency Act. Specifically, the University did not submit a first-tier subaward agreement/amendment/modification within the required timeframe to the System for Award Management (SAM.gov). The University will implement the following corrective actions to address the identified deficiencies: • Internal audit oversight and governance • Enhanced tracking and monitoring systems • Strengthening policies and procedures • Improved interdepartmental coordination • Training and capacity building • Pre-submission review and quality assurance By implementing these measures, the University aims to rectify the identified deficiency and prevent similar occurrences in the future, thereby upholding the integrity of its financial aid programs and maintaining compliance with federal requirements.
Finding 2025-001 – N. Special Tests and Provisions – Enrollment Reporting – Program Level Information on Federal Program(s) – Student Financial Assistance Cluster (ALN’s 84.007, 84.033 84.063, 84.268) Criteria or Specific Requirement – Institutions are required to report enrollment information under the Pell grant and the Direct and Federal Family Education Loan (“FFEL”) loan programs via the National Student Loan Data System (“NSLDS”) (OMB No. 1845-0035), although FFEL loans are no longer made or a part of the SFA Cluster, a student may have a FFEL loan from previous years that would require enrollment reporting for that student (Pell, 34 CFR 690.83(b)(2); FFEL, 34 CFR 682.610; Direct Loan, 34 CFR 685.309; Perkins 34 CFR 674.19(f)). The administration of the Title IV programs depends heavily on the accuracy and timeliness of the enrollment information reported by institutions. Institutions must review, update, and certify student enrollment statuses, program information, and effective dates that appear on the Enrollment Reporting Roster file or on the Enrollment Maintenance page of the NSLDS Professional Access (“NSLDSFAP”) website which the financial aid administrator can access for the auditor. The data on the institution’s Enrollment Reporting Roster, or Enrollment Maintenance page, is what NSLDS has as the most recently certified enrollment. There are two categories of enrollment information, “Campus Level” and “Program Level,” both of which need to be reported accurately and have separate record types. The NSLDS Enrollment Reporting Guide provides the requirements and guidance for reporting enrollment details using the NSLDS Enrollment Reporting Process. Campus Level: Institutions are responsible for accurately and timely reporting certain significant data elements under the Campus-Level Record that the U.S. Department of Education considers high risk, including enrollment status, which is the student’s enrollment status as of the reporting date; full-time (F), three-quarter time (Q), half-time (H), less than half-time (L), leave of absence (A), graduated (G), withdrawn (W), deceased (D), never attended (X) and record not found (Z). At a minimum, institutions are required to certify enrollment every 60 days or every other month. Program Level: Institutions are responsible for accurately and timely reporting certain significant data elements under the Program Level Record that the U.S. Department of Education considers high risk, including OPEID number, CIP code, CIP year, credit level, program enrollment status, program enrollment effective date, program length, and program begin date. Additionally, the Uniform Guidance in 2 CFR Section 200.303, Internal Controls, requires that non-Federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal controls designed to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition – The condition was as follows: Program Level: For certain students that had enrollment status changes, the University incorrectly reported enrollment status, the program begin date, and/or the program enrollment effective date. Cause - Administrative oversight and insufficient internal controls. Effect or Potential Effect – The University is not in compliance with campus level enrollment reporting requirements. Failure to promptly report accurate and timely changes in enrollment status may adversely impact the repayment status for student loan borrowers. Questioned Costs – None. Context – The context is as follows: Program Level: • For 2 of 25 students selected for testing, the program enrollment effective date was incorrectly reported. Indication of Repeat Finding – This is a partial repeat of prior year finding 2024-001. Recommendation – We recommend that the University enhance its procedures and internal controls over the applicable compliance requirements of the enrollment reporting requirement to ensure that all status changes are accurate and submitted to the NSLDS website within the required timeframe. Views of Responsible Officials – The University acknowledges Finding 2025-001 related to deficiencies in enrollment reporting at the program level under the Pell Grant, Direct Loan, and Federal Family Education Loan (“FFEL”) programs. The University concurs with the finding and recognizes the importance of accurate and timely reporting to the National Student Loan Data System (“NSLDS”) in accordance with federal requirements (OMB No. 1845-0035). The University will implement the following corrective actions to address the identified deficiencies: • Establishment of an internal audit function • Process review and cross-functional collaboration • Staffing and resource enhancements • Implementation of monitoring and control systems • Strengthening reporting protocols • Training and accountability measures By implementing these measures, the University aims to rectify the identified deficiency and prevent similar occurrences in the future, thereby upholding the integrity of its financial aid programs and maintaining compliance with federal requirements.
Finding 2025-002 – N. Special Tests and Provisions – Return of Title IV Funds Information on Federal Program(s) – Student Financial Assistance Cluster (ALN’s 84.007, 84.033, 84.063 and 84.268) Criteria or Specific Requirement – Returns of Title IV funds are required to be deposited or transferred into the student financial assistance account or electronic fund transfers initiated to U.S. Department of Education as soon as possible, but no later than 45 days after the date the institution determines that the student withdrew. Returns by check are late if the check is issued more than 45 days after the institution determined the student withdrew or the date on the canceled check shows the check was endorsed more than 60 days after the date the institution determined that the student withdrew (34 CFR 668.173(b)). Additionally, the Uniform Guidance in 2 CFR Section 200.303, Internal Controls, requires that non-Federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal controls designed to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition – A return of Title IV funds for a student was not completed within the required time frames. Cause - Administrative oversight and insufficient internal controls. Effect or Potential Effect – A return of Title IV funds was not completed within the required time frames resulting in the University not being in compliance with return of Title IV funds requirements. Questioned Costs – None. Context – For 2 of 6 students selected for return of Title IV funds testing. Indication of Repeat Finding - This is a repeat of prior year finding 2024-003. Recommendation – We recommend that the University enhance its procedures and internal controls related to the return of Title IV funds within the required time frames. Views of Responsible Officials – The University acknowledges Finding 2025-002 regarding noncompliance with federal requirements governing the timely return of Title IV funds. This finding, which represents a repeat of prior year Finding 2024-003, is taken with the utmost seriousness. The University is committed to implementing immediate and sustainable corrective actions to ensure full compliance with all applicable federal regulations. The University will implement the following corrective actions to address the identified deficiencies: • Establishment of an internal audit function • Strengthening interdepartmental communication • Implementation of technological solutions • Process standardization and internal controls • Staffing, training and accountability By implementing these measures, the University aims to rectify the identified deficiency and prevent similar occurrences in the future, thereby upholding the integrity of its financial aid programs and maintaining compliance with federal requirements.