Audit 44936

FY End
2022-06-30
Total Expended
$50.63M
Findings
4
Programs
15
Year: 2022 Accepted: 2023-03-14

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
39055 2022-001 Significant Deficiency Yes L
39056 2022-001 Significant Deficiency Yes L
615497 2022-001 Significant Deficiency Yes L
615498 2022-001 Significant Deficiency Yes L

Programs

Contacts

Name Title Type
T59JHM69NCZ3 Charles Gradowski Auditee
4843658049 Andrew Lee Auditor
No contacts on file

Notes to SEFA

Title: WILLIAM D. FORD FEDERAL DIRECT LOAN PROGRAM Accounting Policies: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Lincoln University of the Commonwealth System of Higher Education, 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 2 CFR 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 assets, or cash flows of the University. BASIS OF PRESENTATION Expenditures reported on the accompanying Schedule for the year ended June 30, 2022, are presented 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. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. he University participates in the Federal Direct Loan Program (CFDA No. 84.268). During the year ended June 30, 2022, the University disbursed to students the following amount of new loans under the Federal Direct Loan Program: Amount Expended Stafford Loans $5,392,262 Unsubsidized Loans 6,268,618 Plus Loans 6,613,245 Total $18,274,125
Title: FEDERAL PERKINS LOAN PROGRAM Accounting Policies: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Lincoln University of the Commonwealth System of Higher Education, 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 2 CFR 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 assets, or cash flows of the University. BASIS OF PRESENTATION Expenditures reported on the accompanying Schedule for the year ended June 30, 2022, are presented 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. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Federal Perkins Loan Program is administered directly by the University, and balances and transactions relating to this program are included in the Universitys basic financial statements. The Federal Perkins Loan Program ended on September 30, 2017, with final disbursements permitted through June 30, 2018. The Universitys portion of the loans outstanding at the beginning of the year and loans made during the year are included in the federal expenditures presented in the Schedule. Federal Perkins loans outstanding as of June 30, 2022 totaled $1,285,004.
Title: FACILITIES AND ADMINISTRATIVE COST Accounting Policies: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Lincoln University of the Commonwealth System of Higher Education, 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 2 CFR 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 assets, or cash flows of the University. BASIS OF PRESENTATION Expenditures reported on the accompanying Schedule for the year ended June 30, 2022, are presented 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. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The University has negotiated facilities and administrative cost rates for use on federal grants, contracts, and other agreements with the federal government. The negotiated predetermined rates are 55% on-campus and 20% off-campus, and are effective from July 1, 2016, through June 30, 2021. After June 30, 2021, the provisional rates of 55% on campus and 20% off campus will apply until amended.

Finding Details

Federal Agency: Department of Education Federal Program Name: Coronavirus Aid, Relief and Economic Security Act ? Higher Education Emergency Relief Fund ? Institution Portions & Historically Black Colleges and University (HBCUs) Assistance Listing Number: 84.425F & 84.425J Federal Award Identification Number and Year: P425F200155 & P425J200032, 2022 Award Period: July 1, 2021 to June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: The CARES Act 18004(e) and the CRRSAA 314(e) requires an institution receiving funds under HEERF III to submit a report to the secretary, at such time in such a manner as the secretary may require. 1.) Quarterly Public Reporting for Institutional requires a new, separate form to be posted covering aggregate amounts spent for HEERF I, HEERF II, and HEERF III funds each quarterly reporting period due no later than 10 days after the end of each calendar quarter. Condition: During our testing of Institutional Quarterly Public reports the University posted the 1 of the 2 Quarterly Institutional tested 68 days late. Questioned costs: None Context: During our testing of Institutional Quarterly Public reports, we noted that the University was not posting required Quarterly Public reports within 10 days of the calendar quarter. Cause: The University did not have processes in place to maintain documentation of updates to student portion quarterly reports posted to their website. In addition, the University did not have process in place to timely update quarterly Institutional Quarterly Public reports. Effect: Failure to file the required reports timely may result in the loss of funding or delay in payments under the award agreement. Repeat Finding: Yes. Recommendation: We recommend the University enhances its procedures, controls, and review policies around HEERF reporting. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: Department of Education Federal Program Name: Coronavirus Aid, Relief and Economic Security Act ? Higher Education Emergency Relief Fund ? Institution Portions & Historically Black Colleges and University (HBCUs) Assistance Listing Number: 84.425F & 84.425J Federal Award Identification Number and Year: P425F200155 & P425J200032, 2022 Award Period: July 1, 2021 to June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: The CARES Act 18004(e) and the CRRSAA 314(e) requires an institution receiving funds under HEERF III to submit a report to the secretary, at such time in such a manner as the secretary may require. 1.) Quarterly Public Reporting for Institutional requires a new, separate form to be posted covering aggregate amounts spent for HEERF I, HEERF II, and HEERF III funds each quarterly reporting period due no later than 10 days after the end of each calendar quarter. Condition: During our testing of Institutional Quarterly Public reports the University posted the 1 of the 2 Quarterly Institutional tested 68 days late. Questioned costs: None Context: During our testing of Institutional Quarterly Public reports, we noted that the University was not posting required Quarterly Public reports within 10 days of the calendar quarter. Cause: The University did not have processes in place to maintain documentation of updates to student portion quarterly reports posted to their website. In addition, the University did not have process in place to timely update quarterly Institutional Quarterly Public reports. Effect: Failure to file the required reports timely may result in the loss of funding or delay in payments under the award agreement. Repeat Finding: Yes. Recommendation: We recommend the University enhances its procedures, controls, and review policies around HEERF reporting. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: Department of Education Federal Program Name: Coronavirus Aid, Relief and Economic Security Act ? Higher Education Emergency Relief Fund ? Institution Portions & Historically Black Colleges and University (HBCUs) Assistance Listing Number: 84.425F & 84.425J Federal Award Identification Number and Year: P425F200155 & P425J200032, 2022 Award Period: July 1, 2021 to June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: The CARES Act 18004(e) and the CRRSAA 314(e) requires an institution receiving funds under HEERF III to submit a report to the secretary, at such time in such a manner as the secretary may require. 1.) Quarterly Public Reporting for Institutional requires a new, separate form to be posted covering aggregate amounts spent for HEERF I, HEERF II, and HEERF III funds each quarterly reporting period due no later than 10 days after the end of each calendar quarter. Condition: During our testing of Institutional Quarterly Public reports the University posted the 1 of the 2 Quarterly Institutional tested 68 days late. Questioned costs: None Context: During our testing of Institutional Quarterly Public reports, we noted that the University was not posting required Quarterly Public reports within 10 days of the calendar quarter. Cause: The University did not have processes in place to maintain documentation of updates to student portion quarterly reports posted to their website. In addition, the University did not have process in place to timely update quarterly Institutional Quarterly Public reports. Effect: Failure to file the required reports timely may result in the loss of funding or delay in payments under the award agreement. Repeat Finding: Yes. Recommendation: We recommend the University enhances its procedures, controls, and review policies around HEERF reporting. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: Department of Education Federal Program Name: Coronavirus Aid, Relief and Economic Security Act ? Higher Education Emergency Relief Fund ? Institution Portions & Historically Black Colleges and University (HBCUs) Assistance Listing Number: 84.425F & 84.425J Federal Award Identification Number and Year: P425F200155 & P425J200032, 2022 Award Period: July 1, 2021 to June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: The CARES Act 18004(e) and the CRRSAA 314(e) requires an institution receiving funds under HEERF III to submit a report to the secretary, at such time in such a manner as the secretary may require. 1.) Quarterly Public Reporting for Institutional requires a new, separate form to be posted covering aggregate amounts spent for HEERF I, HEERF II, and HEERF III funds each quarterly reporting period due no later than 10 days after the end of each calendar quarter. Condition: During our testing of Institutional Quarterly Public reports the University posted the 1 of the 2 Quarterly Institutional tested 68 days late. Questioned costs: None Context: During our testing of Institutional Quarterly Public reports, we noted that the University was not posting required Quarterly Public reports within 10 days of the calendar quarter. Cause: The University did not have processes in place to maintain documentation of updates to student portion quarterly reports posted to their website. In addition, the University did not have process in place to timely update quarterly Institutional Quarterly Public reports. Effect: Failure to file the required reports timely may result in the loss of funding or delay in payments under the award agreement. Repeat Finding: Yes. Recommendation: We recommend the University enhances its procedures, controls, and review policies around HEERF reporting. Views of responsible officials: There is no disagreement with the audit finding.