Audit 48971

FY End
2022-05-31
Total Expended
$9.46M
Findings
10
Programs
14
Organization: Hendrix College (AR)
Year: 2022 Accepted: 2023-02-22
Auditor: Forvis LLP

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
46956 2022-002 Significant Deficiency - N
46957 2022-001 Significant Deficiency - N
46958 2022-001 Significant Deficiency - N
46959 2022-003 Significant Deficiency - L
46960 2022-003 Significant Deficiency - L
623398 2022-002 Significant Deficiency - N
623399 2022-001 Significant Deficiency - N
623400 2022-001 Significant Deficiency - N
623401 2022-003 Significant Deficiency - L
623402 2022-003 Significant Deficiency - L

Programs

Contacts

Name Title Type
FJQNLA23C6K1 Shawn Mathis Auditee
5014501333 Corey Jennings Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: Note 1: Basis of Presentation The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the College under programs of the federal government for the year ended May 31, 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 College, it is not intended to and does not present the financial position, changes in net assets or cash flows of the College. Note 2: Summary of Significant Accounting Policies Expenditures 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. De Minimis Rate Used: N Rate Explanation: The College has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The federal loan programs listed subsequently are administered directly by the College, and balances and transactions relating to these programs are included in the Colleges consolidated financial statements. Loans outstanding at the beginning of the year and loans made during the year are included in the federal expenditures presented in the Schedule. The balance of loans outstanding at May 31, 2022, consists of Federal Perkins Loan Program (Assistance Listing Number 84.038) of $581,630.

Finding Details

Criteria: Special Tests and Provisions ? Perkins Loan Recordkeeping and Record Retention ? Institutions are required to properly maintain its Perkins loan records in the manner set forth in 34 CFR 674.19.(e). Condition: The College did not maintain Perkins loan records in the manner set forth in 34 CFR 674.19.(e). (Other Instance of Noncompliance) Questioned Costs: None. Context: During testing of Perkins loan recordkeeping and record retention, for open loans at year end 5/31/22, 5 of 25 selections did not have records of the related master promissory note (MPN). A sample of 25 were selected for testing from a population of 384. For loans retired or assigned within the previous three years, 4 of 19 selections did not have records of the related MPN. A sample of 19 were selected for testing from a population of 182. Our sample selection was not, and was not intended to be, statistically valid. Effect: The College does not have documentation of MPNs for the errors identified. Cause: The College?s processes did not ensure MPNs were properly retained. Identification as a Repeat Finding, if Applicable: N/A Recommendation: The College should revisit the record retention for student related files. Views of Responsible Officials and Planned Corrective Actions: Administration concurs with the findings. Effective with the Fiscal Year 2014, the College engaged with a third-party provider which put the Perkins loan processing on a digital platform. The College will review its record storage system of both hardcopy documentation as well as digital document storage and access for protection, preservation and completeness. Further the College will perform an inventory of loan documents currently in storage to identify additional files that are missing master promissory notes. Anticipated Completion Date: May 31, 2023
Criteria: Special Tests and Provisions ? Enrollment Reporting (34 CFR 690.93(b)(2); 34 CFR 682.610; 34 CFR 685.309). Institutions are required to report enrollment information. Condition: The University?s processes did not ensure timely and accurate student status reporting to National Student Loan Data System (NSLDS). Questioned Costs: None. Context: Out of the population of 183 students with student attendance changes a sample of 19 students were selected for testing. Our sampling method was not, and was not intended to be, statistically valid. There were 14 attributes tested for each student with at least one status change. Campus-Level records 1. OPEID Number 2. Enrollment Effective Date 3. Enrollment Status 4. Certification Date Program-Level records 5. OPEID 6. CIP Code 7. CIP Year 8. Credential Level 9. Published Program Length Measurement 10. Published Program Length 11. Program Begin Date 12. Program Enrollment Status 13. Program Enrollment Effective Date Other Records 14. Student changed his or her permanent address The College reported the incorrect Enrollment Status, CIP Code, Program Begin Date, and Program Enrollment Status for 1 student, the incorrect Enrollment Effective Date for 4 students, and the incorrect Program Enrollment Effective Date for 2 students. Additionally, the College did not ensure timely submission of status changes for 5 students. Effect: The College reported incorrect data for students' status changes and did not report the status changes timely. Cause: The College?s processes did not ensure status changes were reported timely and accurately. Identification as a Repeat Finding, if Applicable: N/A Recommendation: The College should update their controls to ensure changes in students? enrollment status are reported in a timely and accurate manner. Views of Responsible Officials and Planned Corrective Actions: Administration concurs with the findings. In the past, the College has reported Campus-Level records, Program-Level records and Other Records to the National Student Clearinghouse (NSC) which in turn transmitted this information to the National Student Loan Data System (NSLDS). NSC historically offers this service to small educational institutions to assist with reporting requirements which may be burdensome due to low staffing levels. The College believes that its reporting to NSC has been reasonably accurate and timely. In fact, NSLDS records no longer reflect the submissions of the College to NSC. The College will research, explore and identify the most efficient method of insuring that complete and accurate data related to enrollment reporting are recorded by NSLDS on a timely basis. Initially the College will explore audit assistance through NSC and if not successful, will further explore direct reporting options to the NSLDS. Anticipated Completion Date: May 31, 2023
Criteria: Special Tests and Provisions ? Enrollment Reporting (34 CFR 690.93(b)(2); 34 CFR 682.610; 34 CFR 685.309). Institutions are required to report enrollment information. Condition: The University?s processes did not ensure timely and accurate student status reporting to National Student Loan Data System (NSLDS). Questioned Costs: None. Context: Out of the population of 183 students with student attendance changes a sample of 19 students were selected for testing. Our sampling method was not, and was not intended to be, statistically valid. There were 14 attributes tested for each student with at least one status change. Campus-Level records 1. OPEID Number 2. Enrollment Effective Date 3. Enrollment Status 4. Certification Date Program-Level records 5. OPEID 6. CIP Code 7. CIP Year 8. Credential Level 9. Published Program Length Measurement 10. Published Program Length 11. Program Begin Date 12. Program Enrollment Status 13. Program Enrollment Effective Date Other Records 14. Student changed his or her permanent address The College reported the incorrect Enrollment Status, CIP Code, Program Begin Date, and Program Enrollment Status for 1 student, the incorrect Enrollment Effective Date for 4 students, and the incorrect Program Enrollment Effective Date for 2 students. Additionally, the College did not ensure timely submission of status changes for 5 students. Effect: The College reported incorrect data for students' status changes and did not report the status changes timely. Cause: The College?s processes did not ensure status changes were reported timely and accurately. Identification as a Repeat Finding, if Applicable: N/A Recommendation: The College should update their controls to ensure changes in students? enrollment status are reported in a timely and accurate manner. Views of Responsible Officials and Planned Corrective Actions: Administration concurs with the findings. In the past, the College has reported Campus-Level records, Program-Level records and Other Records to the National Student Clearinghouse (NSC) which in turn transmitted this information to the National Student Loan Data System (NSLDS). NSC historically offers this service to small educational institutions to assist with reporting requirements which may be burdensome due to low staffing levels. The College believes that its reporting to NSC has been reasonably accurate and timely. In fact, NSLDS records no longer reflect the submissions of the College to NSC. The College will research, explore and identify the most efficient method of insuring that complete and accurate data related to enrollment reporting are recorded by NSLDS on a timely basis. Initially the College will explore audit assistance through NSC and if not successful, will further explore direct reporting options to the NSLDS. Anticipated Completion Date: May 31, 2023
Criteria: Reporting ? Per 2 CFR Part 200.328 and 2CFR Part 200.329, institutions must publicly display on their website the total number of students who have received an Emergency Financial Aid Grant. Institutions are required to submit quarterly budget and expenditure reports detailing institutional expenditures of HEERF funds. Condition: The institution?s count of number of students who have received an Emergency Financial Aid Grant disclosed on the website is not accurate. A quarterly report for institutional portion expenditures was not submitted accurately. Questioned Costs: None. Context: Students eligible to receive an Emergency Financial Aid Grant were reported incorrectly. We received the listing of students used for the reporting disclosures and performed recounts. For the September 30, 2021 disbursement, the College reported 1,291 students received emergency funding instead of the actual number, 1,517, a difference of 226 students. Additionally, for the December 31, 2021 disbursement, the College reported 1,291 students received emergency funding instead of the actual number, 1,514, a difference of 223 students. Finally, the 4th quarter institutional share report inaccurately stated all disbursements were for lost revenues instead of $122,346 being allocated for COVID related expenses. Effect: The disclosures on the website are not accurate. Cause: Internal controls were not adequately designed and implemented to ensure compliance with the program?s reporting requirements. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend implementing controls to ensure the College complies with the programs reporting compliance requirements. Views of Responsible Officials and Planned Corrective Actions: Administration concurs with the findings. The College has corrected the website disclosure of number of students receiving Aid Grants under the program. The College will review and confirm accuracy of any future report submissions. Anticipated Completion Date: May 31, 2023
Criteria: Reporting ? Per 2 CFR Part 200.328 and 2CFR Part 200.329, institutions must publicly display on their website the total number of students who have received an Emergency Financial Aid Grant. Institutions are required to submit quarterly budget and expenditure reports detailing institutional expenditures of HEERF funds. Condition: The institution?s count of number of students who have received an Emergency Financial Aid Grant disclosed on the website is not accurate. A quarterly report for institutional portion expenditures was not submitted accurately. Questioned Costs: None. Context: Students eligible to receive an Emergency Financial Aid Grant were reported incorrectly. We received the listing of students used for the reporting disclosures and performed recounts. For the September 30, 2021 disbursement, the College reported 1,291 students received emergency funding instead of the actual number, 1,517, a difference of 226 students. Additionally, for the December 31, 2021 disbursement, the College reported 1,291 students received emergency funding instead of the actual number, 1,514, a difference of 223 students. Finally, the 4th quarter institutional share report inaccurately stated all disbursements were for lost revenues instead of $122,346 being allocated for COVID related expenses. Effect: The disclosures on the website are not accurate. Cause: Internal controls were not adequately designed and implemented to ensure compliance with the program?s reporting requirements. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend implementing controls to ensure the College complies with the programs reporting compliance requirements. Views of Responsible Officials and Planned Corrective Actions: Administration concurs with the findings. The College has corrected the website disclosure of number of students receiving Aid Grants under the program. The College will review and confirm accuracy of any future report submissions. Anticipated Completion Date: May 31, 2023
Criteria: Special Tests and Provisions ? Perkins Loan Recordkeeping and Record Retention ? Institutions are required to properly maintain its Perkins loan records in the manner set forth in 34 CFR 674.19.(e). Condition: The College did not maintain Perkins loan records in the manner set forth in 34 CFR 674.19.(e). (Other Instance of Noncompliance) Questioned Costs: None. Context: During testing of Perkins loan recordkeeping and record retention, for open loans at year end 5/31/22, 5 of 25 selections did not have records of the related master promissory note (MPN). A sample of 25 were selected for testing from a population of 384. For loans retired or assigned within the previous three years, 4 of 19 selections did not have records of the related MPN. A sample of 19 were selected for testing from a population of 182. Our sample selection was not, and was not intended to be, statistically valid. Effect: The College does not have documentation of MPNs for the errors identified. Cause: The College?s processes did not ensure MPNs were properly retained. Identification as a Repeat Finding, if Applicable: N/A Recommendation: The College should revisit the record retention for student related files. Views of Responsible Officials and Planned Corrective Actions: Administration concurs with the findings. Effective with the Fiscal Year 2014, the College engaged with a third-party provider which put the Perkins loan processing on a digital platform. The College will review its record storage system of both hardcopy documentation as well as digital document storage and access for protection, preservation and completeness. Further the College will perform an inventory of loan documents currently in storage to identify additional files that are missing master promissory notes. Anticipated Completion Date: May 31, 2023
Criteria: Special Tests and Provisions ? Enrollment Reporting (34 CFR 690.93(b)(2); 34 CFR 682.610; 34 CFR 685.309). Institutions are required to report enrollment information. Condition: The University?s processes did not ensure timely and accurate student status reporting to National Student Loan Data System (NSLDS). Questioned Costs: None. Context: Out of the population of 183 students with student attendance changes a sample of 19 students were selected for testing. Our sampling method was not, and was not intended to be, statistically valid. There were 14 attributes tested for each student with at least one status change. Campus-Level records 1. OPEID Number 2. Enrollment Effective Date 3. Enrollment Status 4. Certification Date Program-Level records 5. OPEID 6. CIP Code 7. CIP Year 8. Credential Level 9. Published Program Length Measurement 10. Published Program Length 11. Program Begin Date 12. Program Enrollment Status 13. Program Enrollment Effective Date Other Records 14. Student changed his or her permanent address The College reported the incorrect Enrollment Status, CIP Code, Program Begin Date, and Program Enrollment Status for 1 student, the incorrect Enrollment Effective Date for 4 students, and the incorrect Program Enrollment Effective Date for 2 students. Additionally, the College did not ensure timely submission of status changes for 5 students. Effect: The College reported incorrect data for students' status changes and did not report the status changes timely. Cause: The College?s processes did not ensure status changes were reported timely and accurately. Identification as a Repeat Finding, if Applicable: N/A Recommendation: The College should update their controls to ensure changes in students? enrollment status are reported in a timely and accurate manner. Views of Responsible Officials and Planned Corrective Actions: Administration concurs with the findings. In the past, the College has reported Campus-Level records, Program-Level records and Other Records to the National Student Clearinghouse (NSC) which in turn transmitted this information to the National Student Loan Data System (NSLDS). NSC historically offers this service to small educational institutions to assist with reporting requirements which may be burdensome due to low staffing levels. The College believes that its reporting to NSC has been reasonably accurate and timely. In fact, NSLDS records no longer reflect the submissions of the College to NSC. The College will research, explore and identify the most efficient method of insuring that complete and accurate data related to enrollment reporting are recorded by NSLDS on a timely basis. Initially the College will explore audit assistance through NSC and if not successful, will further explore direct reporting options to the NSLDS. Anticipated Completion Date: May 31, 2023
Criteria: Special Tests and Provisions ? Enrollment Reporting (34 CFR 690.93(b)(2); 34 CFR 682.610; 34 CFR 685.309). Institutions are required to report enrollment information. Condition: The University?s processes did not ensure timely and accurate student status reporting to National Student Loan Data System (NSLDS). Questioned Costs: None. Context: Out of the population of 183 students with student attendance changes a sample of 19 students were selected for testing. Our sampling method was not, and was not intended to be, statistically valid. There were 14 attributes tested for each student with at least one status change. Campus-Level records 1. OPEID Number 2. Enrollment Effective Date 3. Enrollment Status 4. Certification Date Program-Level records 5. OPEID 6. CIP Code 7. CIP Year 8. Credential Level 9. Published Program Length Measurement 10. Published Program Length 11. Program Begin Date 12. Program Enrollment Status 13. Program Enrollment Effective Date Other Records 14. Student changed his or her permanent address The College reported the incorrect Enrollment Status, CIP Code, Program Begin Date, and Program Enrollment Status for 1 student, the incorrect Enrollment Effective Date for 4 students, and the incorrect Program Enrollment Effective Date for 2 students. Additionally, the College did not ensure timely submission of status changes for 5 students. Effect: The College reported incorrect data for students' status changes and did not report the status changes timely. Cause: The College?s processes did not ensure status changes were reported timely and accurately. Identification as a Repeat Finding, if Applicable: N/A Recommendation: The College should update their controls to ensure changes in students? enrollment status are reported in a timely and accurate manner. Views of Responsible Officials and Planned Corrective Actions: Administration concurs with the findings. In the past, the College has reported Campus-Level records, Program-Level records and Other Records to the National Student Clearinghouse (NSC) which in turn transmitted this information to the National Student Loan Data System (NSLDS). NSC historically offers this service to small educational institutions to assist with reporting requirements which may be burdensome due to low staffing levels. The College believes that its reporting to NSC has been reasonably accurate and timely. In fact, NSLDS records no longer reflect the submissions of the College to NSC. The College will research, explore and identify the most efficient method of insuring that complete and accurate data related to enrollment reporting are recorded by NSLDS on a timely basis. Initially the College will explore audit assistance through NSC and if not successful, will further explore direct reporting options to the NSLDS. Anticipated Completion Date: May 31, 2023
Criteria: Reporting ? Per 2 CFR Part 200.328 and 2CFR Part 200.329, institutions must publicly display on their website the total number of students who have received an Emergency Financial Aid Grant. Institutions are required to submit quarterly budget and expenditure reports detailing institutional expenditures of HEERF funds. Condition: The institution?s count of number of students who have received an Emergency Financial Aid Grant disclosed on the website is not accurate. A quarterly report for institutional portion expenditures was not submitted accurately. Questioned Costs: None. Context: Students eligible to receive an Emergency Financial Aid Grant were reported incorrectly. We received the listing of students used for the reporting disclosures and performed recounts. For the September 30, 2021 disbursement, the College reported 1,291 students received emergency funding instead of the actual number, 1,517, a difference of 226 students. Additionally, for the December 31, 2021 disbursement, the College reported 1,291 students received emergency funding instead of the actual number, 1,514, a difference of 223 students. Finally, the 4th quarter institutional share report inaccurately stated all disbursements were for lost revenues instead of $122,346 being allocated for COVID related expenses. Effect: The disclosures on the website are not accurate. Cause: Internal controls were not adequately designed and implemented to ensure compliance with the program?s reporting requirements. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend implementing controls to ensure the College complies with the programs reporting compliance requirements. Views of Responsible Officials and Planned Corrective Actions: Administration concurs with the findings. The College has corrected the website disclosure of number of students receiving Aid Grants under the program. The College will review and confirm accuracy of any future report submissions. Anticipated Completion Date: May 31, 2023
Criteria: Reporting ? Per 2 CFR Part 200.328 and 2CFR Part 200.329, institutions must publicly display on their website the total number of students who have received an Emergency Financial Aid Grant. Institutions are required to submit quarterly budget and expenditure reports detailing institutional expenditures of HEERF funds. Condition: The institution?s count of number of students who have received an Emergency Financial Aid Grant disclosed on the website is not accurate. A quarterly report for institutional portion expenditures was not submitted accurately. Questioned Costs: None. Context: Students eligible to receive an Emergency Financial Aid Grant were reported incorrectly. We received the listing of students used for the reporting disclosures and performed recounts. For the September 30, 2021 disbursement, the College reported 1,291 students received emergency funding instead of the actual number, 1,517, a difference of 226 students. Additionally, for the December 31, 2021 disbursement, the College reported 1,291 students received emergency funding instead of the actual number, 1,514, a difference of 223 students. Finally, the 4th quarter institutional share report inaccurately stated all disbursements were for lost revenues instead of $122,346 being allocated for COVID related expenses. Effect: The disclosures on the website are not accurate. Cause: Internal controls were not adequately designed and implemented to ensure compliance with the program?s reporting requirements. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend implementing controls to ensure the College complies with the programs reporting compliance requirements. Views of Responsible Officials and Planned Corrective Actions: Administration concurs with the findings. The College has corrected the website disclosure of number of students receiving Aid Grants under the program. The College will review and confirm accuracy of any future report submissions. Anticipated Completion Date: May 31, 2023