Audit 401488

FY End
2025-06-30
Total Expended
$4.08M
Findings
1
Programs
4
Organization: Carolina University (NC)
Year: 2025 Accepted: 2026-05-15

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
1214765 2025-002 Material Weakness Yes E

Programs

ALN Program Spent Major Findings
84.268 FEDERAL DIRECT STUDENT LOANS $2.76M Yes 1
84.063 FEDERAL PELL GRANT PROGRAM $1.21M Yes 0
84.033 FEDERAL WORK-STUDY PROGRAM $66,702 Yes 0
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $49,740 Yes 0

Contacts

Name Title Type
SCKVEQAYFW57 Archinya Ingram Auditee
3362977953 Joseph Campbell Auditor
No contacts on file

Notes to SEFA

The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes all federal grant activity for Carolina University, and is presented on the accrual basis of accounting. The information in the schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Because the Schedule presents only a selected portion of the operations of Carolina University, it is not intended to be and does not present the financial position, change in net assets, or cash flows of Carolina University.
The Schedule of Expenditures of Federal Awards 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.
As an institution that is qualified to originate Federal Direct Student Loans, the University is responsible for handling the complete loan process, including fund management as well as promissory note functions. The University is not responsible for collection of these loans. Students of the University received $2,755,185 in Federal Direct Student Loans (Assistance Listing #: 84.268) during the year ended June 30, 2025.
Carolina University has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

The University should strengthen controls over aggregate loan limits by ensuring system controls and NSLDS integrations are validated after updates and by implementing a documented review of aggregate balances prior to disbursement for students nearing limits. Management should also consider enhanced monitoring procedures, including supervisory review for higher-risk disbursements and additional staff training.