FAC Explorer

Audit 53576

FY End
2022-09-30
Total Expended
$20.05M
Findings
4
Programs
2
Organization: Sonoran University of Health Sciences (AZ)
Year: 2022 Accepted: 2023-04-12
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
51331 2022-002 Significant Deficiency - L
51332 2022-003 Significant Deficiency - N
627773 2022-002 Significant Deficiency - L
627774 2022-003 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $19.91M Yes 2
84.033 Federal Work-Study Program $140,000 Yes 0

Contacts

Name Title Type
SJK3WDBXWLJ6 Edward Podol Auditee
4805284182 Don Loberg Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION 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 toreimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Sonoran University of Health Sciences and Affiliate has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Sonoran University of Health Sciences and Affiliate under programs of the federal government for the year ended September 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 Sonoran University of Health Sciences and Affiliate, it is not intended to and does not present the consolidated financial position, changes in net assets, or consolidated cash flows of Sonoran University of Health Sciences and Affiliate.The University did not provide any federal funds to subrecipients nor did they receive any federal noncash assistance, insurance, loans, or loan guarantees.

Finding Details

Finding 2022-002
2022-002 Common Origination Disbursement (COD) Reporting Federal Agency: U.S. Department of Education Federal Program Title: Student Financial Aid Cluster ALN Number: 84.268 Award Period: October 1, 2021 to September 30, 2022 Type of Finding: - Significant Deficiency in Internal Control over Compliance - Other Matters Criteria or specific requirement: The Department of Education requires the College to report the disbursement dates and amounts to the COD system within 15 days of disbursing Direct Loan (34 CFR 685.309) funds to a student. Condition: During our testing, we noted 2 of the 40 disbursements tested had incorrect direct loan disbursement dates reported to the COD system. Questioned costs: None Context: The University had two disbursement dates reported incorrectly to COD. Cause: There was an error in the reporting system that resulted in the dates being incorrectly reported. Effect: Two dates were incorrectly reported to COD. Repeat finding: No Recommendation: We recommend the reporting system be reviewed to ensure the information reported is accurate. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2022-003
2022-003 Return of Title IV Calculations (R2T4) Federal Agency: U.S. Department of Education Federal Program Title: Student Financial Aid Cluster ALN Number: 84.268 Award Period: October 1, 2021 to September 30, 2022 Type of Finding: - Significant Deficiency in Internal Control over Compliance - Other Matters Criteria or specific requirement: The Department of Education (ED) requires that R2T4 calculations are performed unless one module that includes 49% or more of the number of days in the payment period has been completed (34 CFR 668.22(a)). In addition, the Federal Student Aid Handbook, published by the Department of Education, states that percentages are calculated to four decimal places and is rounded to three decimal places for R2T4 calculations. Condition: During our testing, we noted 4 of the 18 students tested completed the first module which included over 49% of the days in the payment period and withdrew either before or during the second module, but incorrectly had R2T4 calculations applied, and funds returned to ED. The University also did not properly round to three decimal places for one of the student?s R2T4 calculations in the 18 students tested. The total dollars that the University returned to ED (but did not need to) was $9,588. Questioned costs: None Context: The University calculated R2T4 for modular students that had completed more than 49% of the days in the payment period. In addition, the University calculated one student's return without the form and did not properly round the completed percentage. Cause: There was a misinterpretation of the new regulations from ED. The University also did not use the form for the R2T4 calculation for every calculation. Effect: Loan funds were returned to ED that were supposed to go to the students ($9,567 in the sample) and a student's R2T4 was calculated incorrectly ($20 returned to ED over the required amount). Repeat finding: No Recommendation: We recommend the University update their R2T4 calculation process to eliminate the students that completed 49% of the payment period days in their modular classes. We also recommend the University use the R2T4 form for all calculations to avoid any potential rounding errors. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2022-002
2022-002 Common Origination Disbursement (COD) Reporting Federal Agency: U.S. Department of Education Federal Program Title: Student Financial Aid Cluster ALN Number: 84.268 Award Period: October 1, 2021 to September 30, 2022 Type of Finding: - Significant Deficiency in Internal Control over Compliance - Other Matters Criteria or specific requirement: The Department of Education requires the College to report the disbursement dates and amounts to the COD system within 15 days of disbursing Direct Loan (34 CFR 685.309) funds to a student. Condition: During our testing, we noted 2 of the 40 disbursements tested had incorrect direct loan disbursement dates reported to the COD system. Questioned costs: None Context: The University had two disbursement dates reported incorrectly to COD. Cause: There was an error in the reporting system that resulted in the dates being incorrectly reported. Effect: Two dates were incorrectly reported to COD. Repeat finding: No Recommendation: We recommend the reporting system be reviewed to ensure the information reported is accurate. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2022-003
2022-003 Return of Title IV Calculations (R2T4) Federal Agency: U.S. Department of Education Federal Program Title: Student Financial Aid Cluster ALN Number: 84.268 Award Period: October 1, 2021 to September 30, 2022 Type of Finding: - Significant Deficiency in Internal Control over Compliance - Other Matters Criteria or specific requirement: The Department of Education (ED) requires that R2T4 calculations are performed unless one module that includes 49% or more of the number of days in the payment period has been completed (34 CFR 668.22(a)). In addition, the Federal Student Aid Handbook, published by the Department of Education, states that percentages are calculated to four decimal places and is rounded to three decimal places for R2T4 calculations. Condition: During our testing, we noted 4 of the 18 students tested completed the first module which included over 49% of the days in the payment period and withdrew either before or during the second module, but incorrectly had R2T4 calculations applied, and funds returned to ED. The University also did not properly round to three decimal places for one of the student?s R2T4 calculations in the 18 students tested. The total dollars that the University returned to ED (but did not need to) was $9,588. Questioned costs: None Context: The University calculated R2T4 for modular students that had completed more than 49% of the days in the payment period. In addition, the University calculated one student's return without the form and did not properly round the completed percentage. Cause: There was a misinterpretation of the new regulations from ED. The University also did not use the form for the R2T4 calculation for every calculation. Effect: Loan funds were returned to ED that were supposed to go to the students ($9,567 in the sample) and a student's R2T4 was calculated incorrectly ($20 returned to ED over the required amount). Repeat finding: No Recommendation: We recommend the University update their R2T4 calculation process to eliminate the students that completed 49% of the payment period days in their modular classes. We also recommend the University use the R2T4 form for all calculations to avoid any potential rounding errors. Views of responsible officials: There is no disagreement with the audit finding.