Audit 50808

FY End
2022-05-31
Total Expended
$51.71M
Findings
20
Programs
15
Organization: Lipscomb University (TN)
Year: 2022 Accepted: 2023-02-26
Auditor: Lbmc PC

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
52027 2022-001 Significant Deficiency Yes C
52028 2022-002 Significant Deficiency - N
52029 2022-001 Significant Deficiency Yes C
52030 2022-002 Significant Deficiency - N
52031 2022-001 Significant Deficiency Yes C
52032 2022-002 Significant Deficiency - N
52033 2022-001 Significant Deficiency Yes C
52034 2022-002 Significant Deficiency - N
52035 2022-001 Significant Deficiency Yes C
52036 2022-002 Significant Deficiency - N
628469 2022-001 Significant Deficiency Yes C
628470 2022-002 Significant Deficiency - N
628471 2022-001 Significant Deficiency Yes C
628472 2022-002 Significant Deficiency - N
628473 2022-001 Significant Deficiency Yes C
628474 2022-002 Significant Deficiency - N
628475 2022-001 Significant Deficiency Yes C
628476 2022-002 Significant Deficiency - N
628477 2022-001 Significant Deficiency Yes C
628478 2022-002 Significant Deficiency - N

Contacts

Name Title Type
LUENG479WQW1 Ashley Borders Auditee
6159666162 Chad L. Milom Auditor
No contacts on file

Notes to SEFA

Title: Guaranteed loan programs Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards and State Financial Assistance (the "Schedule") summarizes the expenditures of the University under federal programs for the year ended May 31, 2022. The information in the Schedule is presented in accordance with the requirements of Title 2U.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 University, it is not intended to, and does not, present the financial position, changes in net assets or cash flows of the University. The University receives federal awards primarily from the United States Department of Education to provide financial assistance to eligible students through direct grants and loan programs. In accordance with the Department of Education's guidelines, the University is allowed to utilize a certain percentage of the federal awards for allowable administrative expenses related to the grant, work-study and student loan programs offered to students. For purposes of the Schedule, federal and state awards include all grants, contracts and similar agreements entered into directly between the University and agencies and departments of the federal government and all sub-awards to the University by nonfederal organizations pursuant to federal grants, contracts, and similar agreements as well as awards received directly from the State of Tennessee. For purposes of the Schedule, expenditures for federal and state programs are recognized on the accrual basis of accounting. Expenditures for federal student financial aid programs are recognized as incurred. These programs included Federal Pell program grants to students, the federal share of students' Federal Supplemental Educational Opportunity Grant (FSEOG) program grants, Federal Work-Study (FWS) program earnings, and certain other federal financial assistance grants for students and administrative cost allowances, where applicable. The amount of Pell grant disbursements does not include the administrative cost allowances totaling $3,475 for 2022. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The University is responsible for the performance of certain administrative duties with respect to guaranteed loan programs. It is not necessary to determine the balance of loans outstanding to students and former students of the University under these programs for the year ended May 31, 2022 as the University has no liability for these loans; and therefore, the loans are not included in the University's consolidated financial statements.
Title: Federal Perkins Loan Program Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards and State Financial Assistance (the "Schedule") summarizes the expenditures of the University under federal programs for the year ended May 31, 2022. The information in the Schedule is presented in accordance with the requirements of Title 2U.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 University, it is not intended to, and does not, present the financial position, changes in net assets or cash flows of the University. The University receives federal awards primarily from the United States Department of Education to provide financial assistance to eligible students through direct grants and loan programs. In accordance with the Department of Education's guidelines, the University is allowed to utilize a certain percentage of the federal awards for allowable administrative expenses related to the grant, work-study and student loan programs offered to students. For purposes of the Schedule, federal and state awards include all grants, contracts and similar agreements entered into directly between the University and agencies and departments of the federal government and all sub-awards to the University by nonfederal organizations pursuant to federal grants, contracts, and similar agreements as well as awards received directly from the State of Tennessee. For purposes of the Schedule, expenditures for federal and state programs are recognized on the accrual basis of accounting. Expenditures for federal student financial aid programs are recognized as incurred. These programs included Federal Pell program grants to students, the federal share of students' Federal Supplemental Educational Opportunity Grant (FSEOG) program grants, Federal Work-Study (FWS) program earnings, and certain other federal financial assistance grants for students and administrative cost allowances, where applicable. The amount of Pell grant disbursements does not include the administrative cost allowances totaling $3,475 for 2022. 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 University's financial statements. The authority to make new loans under this program ended on June 30, 2018. The Department of Education has enacted procedures to return the notes receivable from debtors to the Department of Education, and the Department of Education would service the collection of the loans. The University has begun enacting these procedures. The balance of these loans as shown on the Consolidated Statements of Financial Position on May 31, 2022 and 2021 was $1,177,588 and $1,482,884, respectively. During the fiscal years ending May 31, 2022 and 2021, the University returned from its Perkins Loan Program $305,296 and $278,054, respectively, to the Department of Education and reimbursed itself $36,377 and $56,156, respectively, for prior years expenses incurred in operating the loan program. During the termination of the Perkins Loan Program, the University will continue to collect principal and interest on the outstanding loans. Periodically the University will be notified by the Department of Education of the amounts the University must return to the Department of Education and the amounts the University may retain. These amounts are not determinable at the present time.

Finding Details

Reference Number: 2022-1: Special Tests and Provisions ?Borrower Data and Reconciliation (Direct Loan) Federal Agency: U.S. DEPARTMENT OF EDUCATION Federal Program: Student Financial Aid Cluster Federal Assistance Listing Numbers: Various Federal Award Year: 2021 - 2022 Criteria: Each month, the Common Origination and Disbursement system provides institutions with a School Account Statement (SAS) data file which consists of a Cash Summary, Cash Detail, and Loan Detail records. The University is required to reconcile these files to the University's financial records. Since up to three Direct Loan program years may be open at any given time, institutions may receive three SAS data files each month (34 CFR 685.102(b), 685.301, and 303). Condition: The University completed three of the twelve direct loan reconciliations for fiscal year 2022. Questioned Costs: None Cause: The uncompleted reconciliations were not performed due to a new system implementation and due to turnover in financial aid personnel which prohibited the reconciliation process from being performed on a monthly basis during the fiscal year. Effect: The University was not in compliance with the Federal Direct Loan program requirement of performing and maintaining monthly reconciliations between the Common Origination and Disbursement system information and the University?s internal records. Identification as a repeat finding, if applicable: 2021-001 Recommendation: We recommend the University follow its procedures to ensure monthly reconciliations are performed, reviewed by a supervisory manager, and retain the completed documentation in accordance with the University's retention requirements. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. See corrective action plan.
Reference Number: 2022-2: Untimely Return of Title IV Funds (R2T4) Federal Agency: U.S. DEPARTMENT OF EDUCATION Federal Program: Student Financial Aid Cluster Federal Assistance Listing Numbers: Various Federal Award Year: 2021 - 2022 Criteria: When a recipient of Title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV grant or loan assistance that the student earned as of the student's withdrawal date and must return the amount of Title IV funds for which it is responsible as soon as possible but no later than 45 days after the date of the institution's determination that the student withdrew (34 CFR 668.22(j)(1)). Condition: Out of 37 students that withdrew during the period of enrollment and received Title IV funds, three students required a return of funds. For each of the three students requiring a return, each of the return of funds was returned between 78 and 273 days late. The sample was not intended to be, and was not, a statistically valid sample. Questioned Costs: None Cause: The return of funds was not completed in a timely manner primarily due to a recent system conversion and turnover in the financial aid office personnel that typically calculated and remitted the returns. Effect: The University was not in compliance with return of Title IV funds within the required 45 day period. Identification as a repeat finding, if applicable: Not applicable Recommendation: We recommend the University ensure all last dates of attendance are captured timely for students who withdraw and that the financial aid office implement controls to prevent future untimely remittances. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. See corrective action plan.
Reference Number: 2022-1: Special Tests and Provisions ?Borrower Data and Reconciliation (Direct Loan) Federal Agency: U.S. DEPARTMENT OF EDUCATION Federal Program: Student Financial Aid Cluster Federal Assistance Listing Numbers: Various Federal Award Year: 2021 - 2022 Criteria: Each month, the Common Origination and Disbursement system provides institutions with a School Account Statement (SAS) data file which consists of a Cash Summary, Cash Detail, and Loan Detail records. The University is required to reconcile these files to the University's financial records. Since up to three Direct Loan program years may be open at any given time, institutions may receive three SAS data files each month (34 CFR 685.102(b), 685.301, and 303). Condition: The University completed three of the twelve direct loan reconciliations for fiscal year 2022. Questioned Costs: None Cause: The uncompleted reconciliations were not performed due to a new system implementation and due to turnover in financial aid personnel which prohibited the reconciliation process from being performed on a monthly basis during the fiscal year. Effect: The University was not in compliance with the Federal Direct Loan program requirement of performing and maintaining monthly reconciliations between the Common Origination and Disbursement system information and the University?s internal records. Identification as a repeat finding, if applicable: 2021-001 Recommendation: We recommend the University follow its procedures to ensure monthly reconciliations are performed, reviewed by a supervisory manager, and retain the completed documentation in accordance with the University's retention requirements. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. See corrective action plan.
Reference Number: 2022-2: Untimely Return of Title IV Funds (R2T4) Federal Agency: U.S. DEPARTMENT OF EDUCATION Federal Program: Student Financial Aid Cluster Federal Assistance Listing Numbers: Various Federal Award Year: 2021 - 2022 Criteria: When a recipient of Title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV grant or loan assistance that the student earned as of the student's withdrawal date and must return the amount of Title IV funds for which it is responsible as soon as possible but no later than 45 days after the date of the institution's determination that the student withdrew (34 CFR 668.22(j)(1)). Condition: Out of 37 students that withdrew during the period of enrollment and received Title IV funds, three students required a return of funds. For each of the three students requiring a return, each of the return of funds was returned between 78 and 273 days late. The sample was not intended to be, and was not, a statistically valid sample. Questioned Costs: None Cause: The return of funds was not completed in a timely manner primarily due to a recent system conversion and turnover in the financial aid office personnel that typically calculated and remitted the returns. Effect: The University was not in compliance with return of Title IV funds within the required 45 day period. Identification as a repeat finding, if applicable: Not applicable Recommendation: We recommend the University ensure all last dates of attendance are captured timely for students who withdraw and that the financial aid office implement controls to prevent future untimely remittances. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. See corrective action plan.
Reference Number: 2022-1: Special Tests and Provisions ?Borrower Data and Reconciliation (Direct Loan) Federal Agency: U.S. DEPARTMENT OF EDUCATION Federal Program: Student Financial Aid Cluster Federal Assistance Listing Numbers: Various Federal Award Year: 2021 - 2022 Criteria: Each month, the Common Origination and Disbursement system provides institutions with a School Account Statement (SAS) data file which consists of a Cash Summary, Cash Detail, and Loan Detail records. The University is required to reconcile these files to the University's financial records. Since up to three Direct Loan program years may be open at any given time, institutions may receive three SAS data files each month (34 CFR 685.102(b), 685.301, and 303). Condition: The University completed three of the twelve direct loan reconciliations for fiscal year 2022. Questioned Costs: None Cause: The uncompleted reconciliations were not performed due to a new system implementation and due to turnover in financial aid personnel which prohibited the reconciliation process from being performed on a monthly basis during the fiscal year. Effect: The University was not in compliance with the Federal Direct Loan program requirement of performing and maintaining monthly reconciliations between the Common Origination and Disbursement system information and the University?s internal records. Identification as a repeat finding, if applicable: 2021-001 Recommendation: We recommend the University follow its procedures to ensure monthly reconciliations are performed, reviewed by a supervisory manager, and retain the completed documentation in accordance with the University's retention requirements. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. See corrective action plan.
Reference Number: 2022-2: Untimely Return of Title IV Funds (R2T4) Federal Agency: U.S. DEPARTMENT OF EDUCATION Federal Program: Student Financial Aid Cluster Federal Assistance Listing Numbers: Various Federal Award Year: 2021 - 2022 Criteria: When a recipient of Title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV grant or loan assistance that the student earned as of the student's withdrawal date and must return the amount of Title IV funds for which it is responsible as soon as possible but no later than 45 days after the date of the institution's determination that the student withdrew (34 CFR 668.22(j)(1)). Condition: Out of 37 students that withdrew during the period of enrollment and received Title IV funds, three students required a return of funds. For each of the three students requiring a return, each of the return of funds was returned between 78 and 273 days late. The sample was not intended to be, and was not, a statistically valid sample. Questioned Costs: None Cause: The return of funds was not completed in a timely manner primarily due to a recent system conversion and turnover in the financial aid office personnel that typically calculated and remitted the returns. Effect: The University was not in compliance with return of Title IV funds within the required 45 day period. Identification as a repeat finding, if applicable: Not applicable Recommendation: We recommend the University ensure all last dates of attendance are captured timely for students who withdraw and that the financial aid office implement controls to prevent future untimely remittances. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. See corrective action plan.
Reference Number: 2022-1: Special Tests and Provisions ?Borrower Data and Reconciliation (Direct Loan) Federal Agency: U.S. DEPARTMENT OF EDUCATION Federal Program: Student Financial Aid Cluster Federal Assistance Listing Numbers: Various Federal Award Year: 2021 - 2022 Criteria: Each month, the Common Origination and Disbursement system provides institutions with a School Account Statement (SAS) data file which consists of a Cash Summary, Cash Detail, and Loan Detail records. The University is required to reconcile these files to the University's financial records. Since up to three Direct Loan program years may be open at any given time, institutions may receive three SAS data files each month (34 CFR 685.102(b), 685.301, and 303). Condition: The University completed three of the twelve direct loan reconciliations for fiscal year 2022. Questioned Costs: None Cause: The uncompleted reconciliations were not performed due to a new system implementation and due to turnover in financial aid personnel which prohibited the reconciliation process from being performed on a monthly basis during the fiscal year. Effect: The University was not in compliance with the Federal Direct Loan program requirement of performing and maintaining monthly reconciliations between the Common Origination and Disbursement system information and the University?s internal records. Identification as a repeat finding, if applicable: 2021-001 Recommendation: We recommend the University follow its procedures to ensure monthly reconciliations are performed, reviewed by a supervisory manager, and retain the completed documentation in accordance with the University's retention requirements. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. See corrective action plan.
Reference Number: 2022-2: Untimely Return of Title IV Funds (R2T4) Federal Agency: U.S. DEPARTMENT OF EDUCATION Federal Program: Student Financial Aid Cluster Federal Assistance Listing Numbers: Various Federal Award Year: 2021 - 2022 Criteria: When a recipient of Title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV grant or loan assistance that the student earned as of the student's withdrawal date and must return the amount of Title IV funds for which it is responsible as soon as possible but no later than 45 days after the date of the institution's determination that the student withdrew (34 CFR 668.22(j)(1)). Condition: Out of 37 students that withdrew during the period of enrollment and received Title IV funds, three students required a return of funds. For each of the three students requiring a return, each of the return of funds was returned between 78 and 273 days late. The sample was not intended to be, and was not, a statistically valid sample. Questioned Costs: None Cause: The return of funds was not completed in a timely manner primarily due to a recent system conversion and turnover in the financial aid office personnel that typically calculated and remitted the returns. Effect: The University was not in compliance with return of Title IV funds within the required 45 day period. Identification as a repeat finding, if applicable: Not applicable Recommendation: We recommend the University ensure all last dates of attendance are captured timely for students who withdraw and that the financial aid office implement controls to prevent future untimely remittances. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. See corrective action plan.
Reference Number: 2022-1: Special Tests and Provisions ?Borrower Data and Reconciliation (Direct Loan) Federal Agency: U.S. DEPARTMENT OF EDUCATION Federal Program: Student Financial Aid Cluster Federal Assistance Listing Numbers: Various Federal Award Year: 2021 - 2022 Criteria: Each month, the Common Origination and Disbursement system provides institutions with a School Account Statement (SAS) data file which consists of a Cash Summary, Cash Detail, and Loan Detail records. The University is required to reconcile these files to the University's financial records. Since up to three Direct Loan program years may be open at any given time, institutions may receive three SAS data files each month (34 CFR 685.102(b), 685.301, and 303). Condition: The University completed three of the twelve direct loan reconciliations for fiscal year 2022. Questioned Costs: None Cause: The uncompleted reconciliations were not performed due to a new system implementation and due to turnover in financial aid personnel which prohibited the reconciliation process from being performed on a monthly basis during the fiscal year. Effect: The University was not in compliance with the Federal Direct Loan program requirement of performing and maintaining monthly reconciliations between the Common Origination and Disbursement system information and the University?s internal records. Identification as a repeat finding, if applicable: 2021-001 Recommendation: We recommend the University follow its procedures to ensure monthly reconciliations are performed, reviewed by a supervisory manager, and retain the completed documentation in accordance with the University's retention requirements. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. See corrective action plan.
Reference Number: 2022-2: Untimely Return of Title IV Funds (R2T4) Federal Agency: U.S. DEPARTMENT OF EDUCATION Federal Program: Student Financial Aid Cluster Federal Assistance Listing Numbers: Various Federal Award Year: 2021 - 2022 Criteria: When a recipient of Title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV grant or loan assistance that the student earned as of the student's withdrawal date and must return the amount of Title IV funds for which it is responsible as soon as possible but no later than 45 days after the date of the institution's determination that the student withdrew (34 CFR 668.22(j)(1)). Condition: Out of 37 students that withdrew during the period of enrollment and received Title IV funds, three students required a return of funds. For each of the three students requiring a return, each of the return of funds was returned between 78 and 273 days late. The sample was not intended to be, and was not, a statistically valid sample. Questioned Costs: None Cause: The return of funds was not completed in a timely manner primarily due to a recent system conversion and turnover in the financial aid office personnel that typically calculated and remitted the returns. Effect: The University was not in compliance with return of Title IV funds within the required 45 day period. Identification as a repeat finding, if applicable: Not applicable Recommendation: We recommend the University ensure all last dates of attendance are captured timely for students who withdraw and that the financial aid office implement controls to prevent future untimely remittances. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. See corrective action plan.
Reference Number: 2022-1: Special Tests and Provisions ?Borrower Data and Reconciliation (Direct Loan) Federal Agency: U.S. DEPARTMENT OF EDUCATION Federal Program: Student Financial Aid Cluster Federal Assistance Listing Numbers: Various Federal Award Year: 2021 - 2022 Criteria: Each month, the Common Origination and Disbursement system provides institutions with a School Account Statement (SAS) data file which consists of a Cash Summary, Cash Detail, and Loan Detail records. The University is required to reconcile these files to the University's financial records. Since up to three Direct Loan program years may be open at any given time, institutions may receive three SAS data files each month (34 CFR 685.102(b), 685.301, and 303). Condition: The University completed three of the twelve direct loan reconciliations for fiscal year 2022. Questioned Costs: None Cause: The uncompleted reconciliations were not performed due to a new system implementation and due to turnover in financial aid personnel which prohibited the reconciliation process from being performed on a monthly basis during the fiscal year. Effect: The University was not in compliance with the Federal Direct Loan program requirement of performing and maintaining monthly reconciliations between the Common Origination and Disbursement system information and the University?s internal records. Identification as a repeat finding, if applicable: 2021-001 Recommendation: We recommend the University follow its procedures to ensure monthly reconciliations are performed, reviewed by a supervisory manager, and retain the completed documentation in accordance with the University's retention requirements. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. See corrective action plan.
Reference Number: 2022-2: Untimely Return of Title IV Funds (R2T4) Federal Agency: U.S. DEPARTMENT OF EDUCATION Federal Program: Student Financial Aid Cluster Federal Assistance Listing Numbers: Various Federal Award Year: 2021 - 2022 Criteria: When a recipient of Title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV grant or loan assistance that the student earned as of the student's withdrawal date and must return the amount of Title IV funds for which it is responsible as soon as possible but no later than 45 days after the date of the institution's determination that the student withdrew (34 CFR 668.22(j)(1)). Condition: Out of 37 students that withdrew during the period of enrollment and received Title IV funds, three students required a return of funds. For each of the three students requiring a return, each of the return of funds was returned between 78 and 273 days late. The sample was not intended to be, and was not, a statistically valid sample. Questioned Costs: None Cause: The return of funds was not completed in a timely manner primarily due to a recent system conversion and turnover in the financial aid office personnel that typically calculated and remitted the returns. Effect: The University was not in compliance with return of Title IV funds within the required 45 day period. Identification as a repeat finding, if applicable: Not applicable Recommendation: We recommend the University ensure all last dates of attendance are captured timely for students who withdraw and that the financial aid office implement controls to prevent future untimely remittances. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. See corrective action plan.
Reference Number: 2022-1: Special Tests and Provisions ?Borrower Data and Reconciliation (Direct Loan) Federal Agency: U.S. DEPARTMENT OF EDUCATION Federal Program: Student Financial Aid Cluster Federal Assistance Listing Numbers: Various Federal Award Year: 2021 - 2022 Criteria: Each month, the Common Origination and Disbursement system provides institutions with a School Account Statement (SAS) data file which consists of a Cash Summary, Cash Detail, and Loan Detail records. The University is required to reconcile these files to the University's financial records. Since up to three Direct Loan program years may be open at any given time, institutions may receive three SAS data files each month (34 CFR 685.102(b), 685.301, and 303). Condition: The University completed three of the twelve direct loan reconciliations for fiscal year 2022. Questioned Costs: None Cause: The uncompleted reconciliations were not performed due to a new system implementation and due to turnover in financial aid personnel which prohibited the reconciliation process from being performed on a monthly basis during the fiscal year. Effect: The University was not in compliance with the Federal Direct Loan program requirement of performing and maintaining monthly reconciliations between the Common Origination and Disbursement system information and the University?s internal records. Identification as a repeat finding, if applicable: 2021-001 Recommendation: We recommend the University follow its procedures to ensure monthly reconciliations are performed, reviewed by a supervisory manager, and retain the completed documentation in accordance with the University's retention requirements. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. See corrective action plan.
Reference Number: 2022-2: Untimely Return of Title IV Funds (R2T4) Federal Agency: U.S. DEPARTMENT OF EDUCATION Federal Program: Student Financial Aid Cluster Federal Assistance Listing Numbers: Various Federal Award Year: 2021 - 2022 Criteria: When a recipient of Title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV grant or loan assistance that the student earned as of the student's withdrawal date and must return the amount of Title IV funds for which it is responsible as soon as possible but no later than 45 days after the date of the institution's determination that the student withdrew (34 CFR 668.22(j)(1)). Condition: Out of 37 students that withdrew during the period of enrollment and received Title IV funds, three students required a return of funds. For each of the three students requiring a return, each of the return of funds was returned between 78 and 273 days late. The sample was not intended to be, and was not, a statistically valid sample. Questioned Costs: None Cause: The return of funds was not completed in a timely manner primarily due to a recent system conversion and turnover in the financial aid office personnel that typically calculated and remitted the returns. Effect: The University was not in compliance with return of Title IV funds within the required 45 day period. Identification as a repeat finding, if applicable: Not applicable Recommendation: We recommend the University ensure all last dates of attendance are captured timely for students who withdraw and that the financial aid office implement controls to prevent future untimely remittances. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. See corrective action plan.
Reference Number: 2022-1: Special Tests and Provisions ?Borrower Data and Reconciliation (Direct Loan) Federal Agency: U.S. DEPARTMENT OF EDUCATION Federal Program: Student Financial Aid Cluster Federal Assistance Listing Numbers: Various Federal Award Year: 2021 - 2022 Criteria: Each month, the Common Origination and Disbursement system provides institutions with a School Account Statement (SAS) data file which consists of a Cash Summary, Cash Detail, and Loan Detail records. The University is required to reconcile these files to the University's financial records. Since up to three Direct Loan program years may be open at any given time, institutions may receive three SAS data files each month (34 CFR 685.102(b), 685.301, and 303). Condition: The University completed three of the twelve direct loan reconciliations for fiscal year 2022. Questioned Costs: None Cause: The uncompleted reconciliations were not performed due to a new system implementation and due to turnover in financial aid personnel which prohibited the reconciliation process from being performed on a monthly basis during the fiscal year. Effect: The University was not in compliance with the Federal Direct Loan program requirement of performing and maintaining monthly reconciliations between the Common Origination and Disbursement system information and the University?s internal records. Identification as a repeat finding, if applicable: 2021-001 Recommendation: We recommend the University follow its procedures to ensure monthly reconciliations are performed, reviewed by a supervisory manager, and retain the completed documentation in accordance with the University's retention requirements. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. See corrective action plan.
Reference Number: 2022-2: Untimely Return of Title IV Funds (R2T4) Federal Agency: U.S. DEPARTMENT OF EDUCATION Federal Program: Student Financial Aid Cluster Federal Assistance Listing Numbers: Various Federal Award Year: 2021 - 2022 Criteria: When a recipient of Title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV grant or loan assistance that the student earned as of the student's withdrawal date and must return the amount of Title IV funds for which it is responsible as soon as possible but no later than 45 days after the date of the institution's determination that the student withdrew (34 CFR 668.22(j)(1)). Condition: Out of 37 students that withdrew during the period of enrollment and received Title IV funds, three students required a return of funds. For each of the three students requiring a return, each of the return of funds was returned between 78 and 273 days late. The sample was not intended to be, and was not, a statistically valid sample. Questioned Costs: None Cause: The return of funds was not completed in a timely manner primarily due to a recent system conversion and turnover in the financial aid office personnel that typically calculated and remitted the returns. Effect: The University was not in compliance with return of Title IV funds within the required 45 day period. Identification as a repeat finding, if applicable: Not applicable Recommendation: We recommend the University ensure all last dates of attendance are captured timely for students who withdraw and that the financial aid office implement controls to prevent future untimely remittances. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. See corrective action plan.
Reference Number: 2022-1: Special Tests and Provisions ?Borrower Data and Reconciliation (Direct Loan) Federal Agency: U.S. DEPARTMENT OF EDUCATION Federal Program: Student Financial Aid Cluster Federal Assistance Listing Numbers: Various Federal Award Year: 2021 - 2022 Criteria: Each month, the Common Origination and Disbursement system provides institutions with a School Account Statement (SAS) data file which consists of a Cash Summary, Cash Detail, and Loan Detail records. The University is required to reconcile these files to the University's financial records. Since up to three Direct Loan program years may be open at any given time, institutions may receive three SAS data files each month (34 CFR 685.102(b), 685.301, and 303). Condition: The University completed three of the twelve direct loan reconciliations for fiscal year 2022. Questioned Costs: None Cause: The uncompleted reconciliations were not performed due to a new system implementation and due to turnover in financial aid personnel which prohibited the reconciliation process from being performed on a monthly basis during the fiscal year. Effect: The University was not in compliance with the Federal Direct Loan program requirement of performing and maintaining monthly reconciliations between the Common Origination and Disbursement system information and the University?s internal records. Identification as a repeat finding, if applicable: 2021-001 Recommendation: We recommend the University follow its procedures to ensure monthly reconciliations are performed, reviewed by a supervisory manager, and retain the completed documentation in accordance with the University's retention requirements. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. See corrective action plan.
Reference Number: 2022-2: Untimely Return of Title IV Funds (R2T4) Federal Agency: U.S. DEPARTMENT OF EDUCATION Federal Program: Student Financial Aid Cluster Federal Assistance Listing Numbers: Various Federal Award Year: 2021 - 2022 Criteria: When a recipient of Title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV grant or loan assistance that the student earned as of the student's withdrawal date and must return the amount of Title IV funds for which it is responsible as soon as possible but no later than 45 days after the date of the institution's determination that the student withdrew (34 CFR 668.22(j)(1)). Condition: Out of 37 students that withdrew during the period of enrollment and received Title IV funds, three students required a return of funds. For each of the three students requiring a return, each of the return of funds was returned between 78 and 273 days late. The sample was not intended to be, and was not, a statistically valid sample. Questioned Costs: None Cause: The return of funds was not completed in a timely manner primarily due to a recent system conversion and turnover in the financial aid office personnel that typically calculated and remitted the returns. Effect: The University was not in compliance with return of Title IV funds within the required 45 day period. Identification as a repeat finding, if applicable: Not applicable Recommendation: We recommend the University ensure all last dates of attendance are captured timely for students who withdraw and that the financial aid office implement controls to prevent future untimely remittances. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. See corrective action plan.
Reference Number: 2022-1: Special Tests and Provisions ?Borrower Data and Reconciliation (Direct Loan) Federal Agency: U.S. DEPARTMENT OF EDUCATION Federal Program: Student Financial Aid Cluster Federal Assistance Listing Numbers: Various Federal Award Year: 2021 - 2022 Criteria: Each month, the Common Origination and Disbursement system provides institutions with a School Account Statement (SAS) data file which consists of a Cash Summary, Cash Detail, and Loan Detail records. The University is required to reconcile these files to the University's financial records. Since up to three Direct Loan program years may be open at any given time, institutions may receive three SAS data files each month (34 CFR 685.102(b), 685.301, and 303). Condition: The University completed three of the twelve direct loan reconciliations for fiscal year 2022. Questioned Costs: None Cause: The uncompleted reconciliations were not performed due to a new system implementation and due to turnover in financial aid personnel which prohibited the reconciliation process from being performed on a monthly basis during the fiscal year. Effect: The University was not in compliance with the Federal Direct Loan program requirement of performing and maintaining monthly reconciliations between the Common Origination and Disbursement system information and the University?s internal records. Identification as a repeat finding, if applicable: 2021-001 Recommendation: We recommend the University follow its procedures to ensure monthly reconciliations are performed, reviewed by a supervisory manager, and retain the completed documentation in accordance with the University's retention requirements. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. See corrective action plan.
Reference Number: 2022-2: Untimely Return of Title IV Funds (R2T4) Federal Agency: U.S. DEPARTMENT OF EDUCATION Federal Program: Student Financial Aid Cluster Federal Assistance Listing Numbers: Various Federal Award Year: 2021 - 2022 Criteria: When a recipient of Title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV grant or loan assistance that the student earned as of the student's withdrawal date and must return the amount of Title IV funds for which it is responsible as soon as possible but no later than 45 days after the date of the institution's determination that the student withdrew (34 CFR 668.22(j)(1)). Condition: Out of 37 students that withdrew during the period of enrollment and received Title IV funds, three students required a return of funds. For each of the three students requiring a return, each of the return of funds was returned between 78 and 273 days late. The sample was not intended to be, and was not, a statistically valid sample. Questioned Costs: None Cause: The return of funds was not completed in a timely manner primarily due to a recent system conversion and turnover in the financial aid office personnel that typically calculated and remitted the returns. Effect: The University was not in compliance with return of Title IV funds within the required 45 day period. Identification as a repeat finding, if applicable: Not applicable Recommendation: We recommend the University ensure all last dates of attendance are captured timely for students who withdraw and that the financial aid office implement controls to prevent future untimely remittances. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. See corrective action plan.