FAC Explorer

Audit 40498

FY End
2022-04-30
Total Expended
$46.11M
Findings
2
Programs
4
Organization: Frontier Nursing University, Inc. (KY)
Year: 2022 Accepted: 2022-10-09
Auditor: Blue & CO LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
45883 2022-001 - - L
622325 2022-001 - - L

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $43.85M Yes 1
93.264 Nurse Faculty Loan Program (nflp) $1.28M Yes 0
93.178 Nursing Workforce Diversity $560,900 - 0
93.732 Mental and Behavioral Health Education and Training Grants $412,644 - 0

Contacts

Name Title Type
UHKJSPE98GK1 Joseph Duruttya, CPA Auditee
8592514578 Rick Shields, CPA Auditor
No contacts on file

Notes to SEFA

Title: General 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 Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the consolidated financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) presents the activity of all federal financial assistance programs of Frontier Nursing University, Inc (the University). The Universitys reporting entity is defined in Note 1 to its financial statements. All federal financial assistance was received directly from federal agencies. The University did not elect to use the 10% de minimis indirect cost rate and no amounts were provided to subrecipients.The grant revenue amounts received and expensed are subject to audit and adjustment. If any expenditures are disallowed by the grantor as a result of such an audit, any claim for reimbursement to the grantor would become a liability of the University. In the opinion of management, all grant expenditures are in compliance with the terms of the grant agreements and applicable federal laws and regulations.
Title: Federal Direct Student Loans 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 Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the consolidated financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. For the year ended April 30, 2022, the University processed $43,853,419 of new loans under the Federal Direct Student Loans Program (Assistance Listing (AL) No. 84.268) (which includes unsubsidized and Parents' Loans for Graduate Students).The University is responsible only for the performance of certain administrative duties with respect to the Federal Direct Student Loan Program, and accordingly, it is not practical to determine the balance of loans outstanding to students and former students of the University under the program at April 30, 2022.
Title: Nurse Facility 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 Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the consolidated financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The University administers the Nursing Faculty Loan Program (NFLP). Loans outstanding at the beginning of the year and loans made during the year are included in the federal expenditures presented in the Schedule. Current year loan expenditures and disbursements are $260,611. The balance of loans outstanding at April 30, 2022, consists of: Federal Assistance Listing Number, 93.264; Program Name, Nursing Faculty Loan Program; Outstanding Balance as of April 30, 2022, $1,106,196

Finding Details

Finding 2022-001
Condition: Timely reporting of withdrawn student to the National Student Loan Data System (NSLDS). Criteria: Per 34 CFR 685.309, unless the school expects to complete its next enrollment report within 60 days, the school must notify the lender or the guaranty agency within 30 days, if it discovers that a student who received a loan either did not enroll or ceased to be enrolled on at least a half-time basis. The school is responsible for timely reporting whether they report directly or via a third-party servicer. Cause: The University did not have a control in place to ensure that timely reporting of withdrawal status changes is occurring. Effect: Without notification, the NSLDS is not timely updated of change in status for students who have withdrawn or graduated. Timely notification allows the NSLDS to determine when a student enters repayment status. Context: Out of a sample of 37 students who had withdrawn, 1 student was not reported timely to the National Student Loan Data System (NSLDS). Recommendation: We recommend that internal controls be established to verify that students who have received a loan and ceased enrollment are reported to the guaranty agency within a timely manner. Views of the University and planned corrective action: The University agrees with this finding and summary. The University did not have sufficient control measures in place to ensure that every student?s change in enrollment status was reported to NSLDS in a timely manner. To improve the University?s Title IV regulatory compliance and to ensure that all changes in students? enrollment status are correctly reported to NSLDS in a timely manner, the Director of Enrollment Management and Financial Aid will continue to report a withdrawn student directly to NSLDS within 30 days of a student withdrawing from the University and the Associate Director of Financial Aid will review NSLDS once notification of a students? withdrawal has been received to ensure the withdrawn status has been reported timely. Responsible parties: Rainie Boggs, Director of Enrollment Management and Financial Aid and Andrew Dezarn, Associate Director of Financial Aid Estimated completion date: August 15, 2022
Finding 2022-001
Condition: Timely reporting of withdrawn student to the National Student Loan Data System (NSLDS). Criteria: Per 34 CFR 685.309, unless the school expects to complete its next enrollment report within 60 days, the school must notify the lender or the guaranty agency within 30 days, if it discovers that a student who received a loan either did not enroll or ceased to be enrolled on at least a half-time basis. The school is responsible for timely reporting whether they report directly or via a third-party servicer. Cause: The University did not have a control in place to ensure that timely reporting of withdrawal status changes is occurring. Effect: Without notification, the NSLDS is not timely updated of change in status for students who have withdrawn or graduated. Timely notification allows the NSLDS to determine when a student enters repayment status. Context: Out of a sample of 37 students who had withdrawn, 1 student was not reported timely to the National Student Loan Data System (NSLDS). Recommendation: We recommend that internal controls be established to verify that students who have received a loan and ceased enrollment are reported to the guaranty agency within a timely manner. Views of the University and planned corrective action: The University agrees with this finding and summary. The University did not have sufficient control measures in place to ensure that every student?s change in enrollment status was reported to NSLDS in a timely manner. To improve the University?s Title IV regulatory compliance and to ensure that all changes in students? enrollment status are correctly reported to NSLDS in a timely manner, the Director of Enrollment Management and Financial Aid will continue to report a withdrawn student directly to NSLDS within 30 days of a student withdrawing from the University and the Associate Director of Financial Aid will review NSLDS once notification of a students? withdrawal has been received to ensure the withdrawn status has been reported timely. Responsible parties: Rainie Boggs, Director of Enrollment Management and Financial Aid and Andrew Dezarn, Associate Director of Financial Aid Estimated completion date: August 15, 2022