FAC Explorer

Audit 44818

FY End
2022-06-30
Total Expended
$89.02M
Findings
6
Programs
24
Organization: Seattle University (WA)
Year: 2022 Accepted: 2022-11-08
Auditor: Kpmg

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
39229 2022-001 Significant Deficiency - N
39230 2022-002 Significant Deficiency - N
39231 2022-001 Significant Deficiency - N
615671 2022-001 Significant Deficiency - N
615672 2022-002 Significant Deficiency - N
615673 2022-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $71.16M Yes 1
84.425E Covid-19 Education Stabilization Fund $5.13M Yes 0
84.063 Federal Pell Grant Program $4.28M Yes 2
84.038 Federal Perkins Loan $3.15M Yes 0
93.364 Nursing Student Loans $1.17M Yes 0
84.007 Federal Supplemental Educational Opportunity Grants $1.06M Yes 0
84.033 Federal Work-Study Program $988,254 Yes 0
84.027A Special Education Grants to States $552,318 - 0
47.076 Education and Human Resources $320,248 - 0
93.853 Extramural Research Programs in the Neurosciences and Neurological Disorders $96,965 - 0
94.006 Americorps $78,454 - 0
93.866 Aging Research $68,583 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $66,466 - 0
19.415 Professional and Cultural Exchange Programs - Citizen Exchanges $51,968 - 0
47.049 Mathematical and Physical Sciences $41,153 - 0
19.401 Academic Exchange Programs - Scholars $30,216 - 0
47.074 Biological Sciences $24,555 - 0
93.859 Biomedical Research and Research Training $19,604 - 0
15.678 Cooperative Ecosystem Studies Units $14,927 - 0
47.041 Engineering $7,681 - 0
10.031 Agriculture and Food Research Initiative $7,538 - 0
84.173A Special Education Preschool Grants $4,619 - 0
47.070 Computer and Information Science and Engineering $1,343 - 0
84.425F Covid-19 Education Stabilization Fund $337 Yes 0

Contacts

Name Title Type
LCYLGVGSEQE3 Joe Cater Auditee
2062208283 Paige Hagen Auditor
No contacts on file

Notes to SEFA

Title: Program Costs/Matching Contributions Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Seattle University (the University) and is presented on the accrual basis of accounting. The Universitys audited financial statements are presented on the same basis. De Minimis Rate Used: N Rate Explanation: The amount expended includes $391,776 claimed as an indirect cost recovery using an approved indirect cost rate, unless otherwise restricted. The University has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The amount shown as current year expenditures within the Schedule represents only the federal grant portion of the program costs. Entire program costs, including the Universitys matching share, are more than the expenditures shown within the Schedule. Expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: Loan Administration Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Seattle University (the University) and is presented on the accrual basis of accounting. The Universitys audited financial statements are presented on the same basis. De Minimis Rate Used: N Rate Explanation: The amount expended includes $391,776 claimed as an indirect cost recovery using an approved indirect cost rate, unless otherwise restricted. The University has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. (a) The University administers the Federal Perkins Loan and Nursing Student Loan programs. The amounts listed for these loans on the Schedule include any loans made during the fiscal year plus the balance of loans from previous years for which the federal government imposes continuing compliance requirements, plus any interest subsidy, cash, or administrative cost allowances received. The table below provides the balance at the end of the current fiscal year and current year lending activity:Federal Perkins Loan CFDA number 84.038 Outstanding balance at June 30, 2022 $2,430,706Nursing Student Loans CFDA number 93.364 Current year lending $184,000 Outstanding balance at June 30, 2022 $991,657(b) During the year ended June 30, 2022, the University authorized for processing the following amounts of new loans under the Federal Direct Loan Program, which includes Stafford Loans and Parents Loans for Undergraduate Students:Federal Direct Student Loans CFDA number 84.268 Outstanding balance at June 30, 2022 $71,163,435

Finding Details

Finding 2022-001
Finding: 2022-001: Calculation and Timely Return of Title IV Funds Federal Agency: U.S. Department of Education Program Name: Student Financial Assistance Cluster AL # and Program Name: 84.268 Federal Direct Student Loans, 84.063 Federal Pell Grant Program Federal Award Numbers: N/A Federal Award Year: July 1, 2021 ? June 30, 2022 Questioned Costs: Known: None Likely: None Compliance Requirement: Special Tests and Provisions ? Return of Title IV Funds Criteria When a recipient of Title IV funds withdraws from an institution, the institution must determine the amount of Title IV aid earned by the student as of the student?s withdrawal date. If the total amount of Title IV assistance earned by the student is less than the amount that was disbursed to the student as of the date of the institution?s determination that the student withdrew, the difference must be returned to the Title IV programs. Per 34 CFR 668.22(e), the percentage of Title IV assistance that has been earned by the student equals the percentage of the payment period or period of enrollment that the student completed. Per 34 CFR 668.173(b), returns of Title IV funds are required to be deposited or transferred as soon as possible, but no later than 45 days after the date the institution determines that the student withdrew. Condition Found During our testing of return of Title IV funds, we selected a sample of 36 students to recalculate the amount to be returned and to test whether the University returned those funds within the 45-day requirement. One of our selections was not submitted within the required 45-day window, and two of our selections had calculations based off an incorrect start-of-term date of January 3, 2022, instead of the correct date of January 4, 2022. Cause and Effect The University did not have an adequate control to ensure that the Title IV funds were consistently calculated correctly and returned within the required 45 days. Repeat Finding This finding is not a repeat finding in the immediately prior audit. Statistical Sampling The sample was not intended to be, and was not, a statistically valid sample. Recommendation We recommend the University implement a process and related control to ensure the returned Title IV funds are correctly calculated and that they are returned timely to the Department of Education. Views of Responsible Officials The University agrees with the condition reported. The responsible department reviewed the process and controls related to the return to Title IV requirement. The University has implemented controls to ensure that the correct start dates are used, and returns are made within the 45-day requirement.
Finding 2022-002
Finding: 2022-002: Late Reporting Federal Agency: U.S. Department of Education Program Name: Student Financial Assistance Cluster AL # and Program Name: 84.063 Federal Pell Grant Program Federal Award Numbers: N/A Federal Award Year: July 1, 2021 ? June 30, 2022 Questioned Costs: Known: None Likely: None Compliance Requirement: Reporting Criteria Per Federal Register, Volume 85, Number 135, July 14, 2020, institutions must report student disbursement data within 15 calendar days after the institution makes a disbursement to a student. Condition Found During our reporting testing, we selected a sample of 25 students and noted there were three for which the reports were submitted 36 days after the institution made the disbursements. Cause and Effect The University did not have an adequate control to ensure that the reporting of student disbursement data occurred within the 15-day requirement. Repeat Finding This finding is not a repeat finding in the immediately prior audit. Statistical Sampling The sample was not intended to be, and was not, a statistically valid sample. Recommendation We recommend the University implement a process and related control to ensure the student disbursement reports are submitted timely. Views of Responsible Officials The University agrees with the condition reported. Staffing changes in the department responsible for the Pell reporting led to a brief period of delayed reporting. The University has improved the reporting process and controls to ensure the timeliness of future reporting.
Finding 2022-001
Finding: 2022-001: Calculation and Timely Return of Title IV Funds Federal Agency: U.S. Department of Education Program Name: Student Financial Assistance Cluster AL # and Program Name: 84.268 Federal Direct Student Loans, 84.063 Federal Pell Grant Program Federal Award Numbers: N/A Federal Award Year: July 1, 2021 ? June 30, 2022 Questioned Costs: Known: None Likely: None Compliance Requirement: Special Tests and Provisions ? Return of Title IV Funds Criteria When a recipient of Title IV funds withdraws from an institution, the institution must determine the amount of Title IV aid earned by the student as of the student?s withdrawal date. If the total amount of Title IV assistance earned by the student is less than the amount that was disbursed to the student as of the date of the institution?s determination that the student withdrew, the difference must be returned to the Title IV programs. Per 34 CFR 668.22(e), the percentage of Title IV assistance that has been earned by the student equals the percentage of the payment period or period of enrollment that the student completed. Per 34 CFR 668.173(b), returns of Title IV funds are required to be deposited or transferred as soon as possible, but no later than 45 days after the date the institution determines that the student withdrew. Condition Found During our testing of return of Title IV funds, we selected a sample of 36 students to recalculate the amount to be returned and to test whether the University returned those funds within the 45-day requirement. One of our selections was not submitted within the required 45-day window, and two of our selections had calculations based off an incorrect start-of-term date of January 3, 2022, instead of the correct date of January 4, 2022. Cause and Effect The University did not have an adequate control to ensure that the Title IV funds were consistently calculated correctly and returned within the required 45 days. Repeat Finding This finding is not a repeat finding in the immediately prior audit. Statistical Sampling The sample was not intended to be, and was not, a statistically valid sample. Recommendation We recommend the University implement a process and related control to ensure the returned Title IV funds are correctly calculated and that they are returned timely to the Department of Education. Views of Responsible Officials The University agrees with the condition reported. The responsible department reviewed the process and controls related to the return to Title IV requirement. The University has implemented controls to ensure that the correct start dates are used, and returns are made within the 45-day requirement.
Finding 2022-001
Finding: 2022-001: Calculation and Timely Return of Title IV Funds Federal Agency: U.S. Department of Education Program Name: Student Financial Assistance Cluster AL # and Program Name: 84.268 Federal Direct Student Loans, 84.063 Federal Pell Grant Program Federal Award Numbers: N/A Federal Award Year: July 1, 2021 ? June 30, 2022 Questioned Costs: Known: None Likely: None Compliance Requirement: Special Tests and Provisions ? Return of Title IV Funds Criteria When a recipient of Title IV funds withdraws from an institution, the institution must determine the amount of Title IV aid earned by the student as of the student?s withdrawal date. If the total amount of Title IV assistance earned by the student is less than the amount that was disbursed to the student as of the date of the institution?s determination that the student withdrew, the difference must be returned to the Title IV programs. Per 34 CFR 668.22(e), the percentage of Title IV assistance that has been earned by the student equals the percentage of the payment period or period of enrollment that the student completed. Per 34 CFR 668.173(b), returns of Title IV funds are required to be deposited or transferred as soon as possible, but no later than 45 days after the date the institution determines that the student withdrew. Condition Found During our testing of return of Title IV funds, we selected a sample of 36 students to recalculate the amount to be returned and to test whether the University returned those funds within the 45-day requirement. One of our selections was not submitted within the required 45-day window, and two of our selections had calculations based off an incorrect start-of-term date of January 3, 2022, instead of the correct date of January 4, 2022. Cause and Effect The University did not have an adequate control to ensure that the Title IV funds were consistently calculated correctly and returned within the required 45 days. Repeat Finding This finding is not a repeat finding in the immediately prior audit. Statistical Sampling The sample was not intended to be, and was not, a statistically valid sample. Recommendation We recommend the University implement a process and related control to ensure the returned Title IV funds are correctly calculated and that they are returned timely to the Department of Education. Views of Responsible Officials The University agrees with the condition reported. The responsible department reviewed the process and controls related to the return to Title IV requirement. The University has implemented controls to ensure that the correct start dates are used, and returns are made within the 45-day requirement.
Finding 2022-002
Finding: 2022-002: Late Reporting Federal Agency: U.S. Department of Education Program Name: Student Financial Assistance Cluster AL # and Program Name: 84.063 Federal Pell Grant Program Federal Award Numbers: N/A Federal Award Year: July 1, 2021 ? June 30, 2022 Questioned Costs: Known: None Likely: None Compliance Requirement: Reporting Criteria Per Federal Register, Volume 85, Number 135, July 14, 2020, institutions must report student disbursement data within 15 calendar days after the institution makes a disbursement to a student. Condition Found During our reporting testing, we selected a sample of 25 students and noted there were three for which the reports were submitted 36 days after the institution made the disbursements. Cause and Effect The University did not have an adequate control to ensure that the reporting of student disbursement data occurred within the 15-day requirement. Repeat Finding This finding is not a repeat finding in the immediately prior audit. Statistical Sampling The sample was not intended to be, and was not, a statistically valid sample. Recommendation We recommend the University implement a process and related control to ensure the student disbursement reports are submitted timely. Views of Responsible Officials The University agrees with the condition reported. Staffing changes in the department responsible for the Pell reporting led to a brief period of delayed reporting. The University has improved the reporting process and controls to ensure the timeliness of future reporting.
Finding 2022-001
Finding: 2022-001: Calculation and Timely Return of Title IV Funds Federal Agency: U.S. Department of Education Program Name: Student Financial Assistance Cluster AL # and Program Name: 84.268 Federal Direct Student Loans, 84.063 Federal Pell Grant Program Federal Award Numbers: N/A Federal Award Year: July 1, 2021 ? June 30, 2022 Questioned Costs: Known: None Likely: None Compliance Requirement: Special Tests and Provisions ? Return of Title IV Funds Criteria When a recipient of Title IV funds withdraws from an institution, the institution must determine the amount of Title IV aid earned by the student as of the student?s withdrawal date. If the total amount of Title IV assistance earned by the student is less than the amount that was disbursed to the student as of the date of the institution?s determination that the student withdrew, the difference must be returned to the Title IV programs. Per 34 CFR 668.22(e), the percentage of Title IV assistance that has been earned by the student equals the percentage of the payment period or period of enrollment that the student completed. Per 34 CFR 668.173(b), returns of Title IV funds are required to be deposited or transferred as soon as possible, but no later than 45 days after the date the institution determines that the student withdrew. Condition Found During our testing of return of Title IV funds, we selected a sample of 36 students to recalculate the amount to be returned and to test whether the University returned those funds within the 45-day requirement. One of our selections was not submitted within the required 45-day window, and two of our selections had calculations based off an incorrect start-of-term date of January 3, 2022, instead of the correct date of January 4, 2022. Cause and Effect The University did not have an adequate control to ensure that the Title IV funds were consistently calculated correctly and returned within the required 45 days. Repeat Finding This finding is not a repeat finding in the immediately prior audit. Statistical Sampling The sample was not intended to be, and was not, a statistically valid sample. Recommendation We recommend the University implement a process and related control to ensure the returned Title IV funds are correctly calculated and that they are returned timely to the Department of Education. Views of Responsible Officials The University agrees with the condition reported. The responsible department reviewed the process and controls related to the return to Title IV requirement. The University has implemented controls to ensure that the correct start dates are used, and returns are made within the 45-day requirement.