FAC Explorer

Audit 40375

FY End
2022-06-30
Total Expended
$21.25M
Findings
2
Programs
6
Organization: Caribbean University, Inc. (PR)
Year: 2022 Accepted: 2023-03-29
Auditor: Baker Tilly Puerto Rico CPAS Psc

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
42568 2022-001 - Yes N
619010 2022-001 - Yes N

Programs

ALN Program Spent Major Findings
84.063 Federal Pell Grant Program $5.94M Yes 0
84.268 Federal Direct Student Loans $5.22M Yes 1
84.425 Education Stabilization Fund $1.14M Yes 0
84.033 Federal Work-Study Program $152,799 Yes 0
84.007 Federal Supplemental Educational Opportunity Grants $136,075 Yes 0
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $8,521 Yes 0

Contacts

Name Title Type
TA59JE7BA8T8 Hector Gracia Auditee
7877800070 Jose A Rodriguez Auditor
No contacts on file

Notes to SEFA

Accounting Policies: . Basis of presentation The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Caribbean University, Inc. under programs of the federal government for the year ended June 30, 2022. 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 Caribbean University, Inc., it is not intended to and does not present the financial position, changes in net assets or cash flows of Caribbean University, Inc. 2. Summary of significant accounting policiesExpenditures 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.3. Federal Loan Program The value of loans processed by the University for eligible students under federal direct student loan program for the year ended June 30, 2022 amounted to $5,216,061 as presented in the schedule of federal expenditures. Caribbean University, Inc. had the following loan balances outstanding at June 30, 2022.Program TitleFederal CFDA NumberAmountOutstanding Federal Perkins Loans 84.038$49,058 4. Administrative costsThe University does not have a federally negotiated indirect cost rate applicable to the programs. The University does not use the 10 percent de minimum cost rate provided for in the Uniform Guidance.5. Assistance Listing Number (ALN) The ALN included in this schedule are determined based on the program name, review of grant contract information and the U.S. Office of Management and Budgets Catalogue of Federal Assistance Listing. 6. Student financial aid Program clusterFor the year ended June 30, 2022 the University received and disbursed $6,236,098 in Title IV Funds of Higher Education Act of 1965 (SFA Cluster Programs); and $5,216,061 in Federal Direct Students Loans in which the University acts as agent for the recipient.The Uniform Guidance defines a cluster of programs as a grouping of closely related programs that share common compliance requirements. According to this definition, the Student Financial Assistance programs were deemed to be a cluster of program and were tested accordingly. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-001
FINDING NO. 2022-001 Federal Program: CFDA 84.268 Federal Direct Student Loan Category: Compliance ? Special tests and provisions ? Enrollment reporting. Criteria: 34 CFR 682.610 (c) (2) - The institution shall notify the guaranty agency or lender within 30 days if it discovers that a Stafford, SLS, or PLUS Loan has been made to or on behalf of a student who enrolled at the institution but has ceased to be enrolled on at least a half ?time basis, unless the institution expects to submit its next student status confirmation report to the Secretary within the next 60 days. Condition: The Institution did not notify the Secretary through the NSLDS in a timely manner the change in the enrollment status (withdrew/graduated) of two (2) students with federal loans during the academic period covering the fiscal year 2021 - 2022. Questioned Costs: No questioned costs were identified. Perspective Information: We examined the status change reporting of 25 students with federal loans during the fiscal year 2022. Effect: Failure to notify a change in enrollment status on time would preclude a lender from obtaining the necessary information in order to determine a student?s status for billing and other required procedures. Cause: The Institution was in the process of reviewing the procedures for identifying students who met the graduation requirements. Recommendation: The Registrar?s Office should improve the procedures to ascertain the timely notification of any change in status of students? recipients of Federal loans. Follow up procedures should be made to the implementation process of the Clearing House Enrolment Reporting System. Views of Responsible Officials and Planned Corrective Action: See Institution?s corrective action plan.
Finding 2022-001
FINDING NO. 2022-001 Federal Program: CFDA 84.268 Federal Direct Student Loan Category: Compliance ? Special tests and provisions ? Enrollment reporting. Criteria: 34 CFR 682.610 (c) (2) - The institution shall notify the guaranty agency or lender within 30 days if it discovers that a Stafford, SLS, or PLUS Loan has been made to or on behalf of a student who enrolled at the institution but has ceased to be enrolled on at least a half ?time basis, unless the institution expects to submit its next student status confirmation report to the Secretary within the next 60 days. Condition: The Institution did not notify the Secretary through the NSLDS in a timely manner the change in the enrollment status (withdrew/graduated) of two (2) students with federal loans during the academic period covering the fiscal year 2021 - 2022. Questioned Costs: No questioned costs were identified. Perspective Information: We examined the status change reporting of 25 students with federal loans during the fiscal year 2022. Effect: Failure to notify a change in enrollment status on time would preclude a lender from obtaining the necessary information in order to determine a student?s status for billing and other required procedures. Cause: The Institution was in the process of reviewing the procedures for identifying students who met the graduation requirements. Recommendation: The Registrar?s Office should improve the procedures to ascertain the timely notification of any change in status of students? recipients of Federal loans. Follow up procedures should be made to the implementation process of the Clearing House Enrolment Reporting System. Views of Responsible Officials and Planned Corrective Action: See Institution?s corrective action plan.