Audit 53657

FY End
2022-06-30
Total Expended
$37.52M
Findings
6
Programs
22
Organization: Benedict College (SC)
Year: 2022 Accepted: 2023-03-30

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
47222 2022-003 Material Weakness - N
47223 2022-003 Material Weakness - N
47224 2022-002 Material Weakness - L
623664 2022-003 Material Weakness - N
623665 2022-003 Material Weakness - N
623666 2022-002 Material Weakness - L

Contacts

Name Title Type
HSHMHVL8L7D5 Ms. Jackie Brown Auditee
8037054971 Robb Rose Auditor
No contacts on file

Notes to SEFA

Title: Adjustments and Transfers Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Benedict College (the College) under programs of the federal government for the year ended June 30, 2022. The information in the 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 (the 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. Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. 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. The pass through entity identifying numbers are presented where available. The College has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. As allowable and in accordance with federal regulations issued by the U.S. Department of Education during the year ended June 30, 2022, the College transferred $212,500 of Federal Work Study (FWS) Program (ALN 84.033) award funds to the Federal Supplemental Educational Opportunity Grants Program (ALN 84.007).

Finding Details

CFDA Number, Federal Agency, and Program Name - U.S. Department of Education, Student Financial Assistance Cluster (Pell - 84.063 and Federal Direct Loans - 84.268) Federal Award Identification Number and Year - 2022 - 84.063 and 84.268 Pass-through Entity - N/A Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - The College has 60 days from the date it determines an enrollment status change to report to NSLDS. The enrollment reporting must be updated for changes in the data elements for the campus record and the program record and submitted electronically through the batch method, spreadsheet submittal, or the NSLDS website (Pell, 34 CFR 690.83(b)(2); Direct Loan, 34 CFR 685.309). Condition - Of the 40 students selected for enrollment reporting testing, the University did not properly update student enrollment information for 35 students in an accurate or timely manner. Questioned Costs - None Context - Out of a sample of 40 students, we noted 35 students whose graduations were not timely reported. Cause and Effect - A control was lacking to ensure information submitted to National Student Clearinghouse was completed accurately and timely. As a result, 35 student status changes were reported late Recommendation - The College should implement a process to ensure that all student status changes are reported to NSLDS in an accurate and timely fashion. Views of Responsible Officials and Planned Corrective Actions - The errors are attributed to programming embedded in the school's learning management system and delays by NSC in relaying information to NSLDS. To correct the findings, Benedict is implementing the following action plan: 1) The reporting process was temporarily moved to another campus office during a staff transition in the Registrar's Office. With a new registrar and assistant registrar in place, the process will be reassigned to the Registrar. 2) The College is scheduling a process maintenance session with the representatives from Jenzabar EX to ensure proper coding in the school's learning management system. Individualized training will also be scheduled for the Registrrar's staff to ensure a full understanding of the mechanics of the reporting system. 3) As NSC only reports status changes when the subsequent file is received (for example, May status changes are only reported to NSLDS when the June report is received), Benedict's NSC submission schedule will be amended to every 30 days throughout the entire calendar year, thereby ensuring that the triggering event allows NSLDS receipt within 60 days.
CFDA Number, Federal Agency, and Program Name - U.S. Department of Education, Student Financial Assistance Cluster (Pell - 84.063 and Federal Direct Loans - 84.268) Federal Award Identification Number and Year - 2022 - 84.063 and 84.268 Pass-through Entity - N/A Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - The College has 60 days from the date it determines an enrollment status change to report to NSLDS. The enrollment reporting must be updated for changes in the data elements for the campus record and the program record and submitted electronically through the batch method, spreadsheet submittal, or the NSLDS website (Pell, 34 CFR 690.83(b)(2); Direct Loan, 34 CFR 685.309). Condition - Of the 40 students selected for enrollment reporting testing, the University did not properly update student enrollment information for 35 students in an accurate or timely manner. Questioned Costs - None Context - Out of a sample of 40 students, we noted 35 students whose graduations were not timely reported. Cause and Effect - A control was lacking to ensure information submitted to National Student Clearinghouse was completed accurately and timely. As a result, 35 student status changes were reported late Recommendation - The College should implement a process to ensure that all student status changes are reported to NSLDS in an accurate and timely fashion. Views of Responsible Officials and Planned Corrective Actions - The errors are attributed to programming embedded in the school's learning management system and delays by NSC in relaying information to NSLDS. To correct the findings, Benedict is implementing the following action plan: 1) The reporting process was temporarily moved to another campus office during a staff transition in the Registrar's Office. With a new registrar and assistant registrar in place, the process will be reassigned to the Registrar. 2) The College is scheduling a process maintenance session with the representatives from Jenzabar EX to ensure proper coding in the school's learning management system. Individualized training will also be scheduled for the Registrrar's staff to ensure a full understanding of the mechanics of the reporting system. 3) As NSC only reports status changes when the subsequent file is received (for example, May status changes are only reported to NSLDS when the June report is received), Benedict's NSC submission schedule will be amended to every 30 days throughout the entire calendar year, thereby ensuring that the triggering event allows NSLDS receipt within 60 days.
CFDA Number, Federal Agency, and Program Name - 84.425J - U.S. Department of Education, Education Stabilization Fund - Higher Education Emergency Relief Fund Federal Award Identification Number and Year - 2022 - 84.425 J Finding Type - Material weakness Repeat Finding - No Criteria -Per 2 CFR 200.510(b), the College must prepare a schedule of federal expenditures (SEFA) for the period covered by the auditee's financial statements which must include the total federal awards expended as as determined in accordance with section 200.502. Condition - The SEFA was not complete or accurate. Questioned Costs - none Identification of How Questioned Costs Were Computed - N/A Context - As described in financial statement finding 2022-001, during fiscal year June 20, 2022, approximately $9.3 million of lost revenue was incorrectly recorded as revenue in fiscal year 2022. In addition, the College initially also incorrectly included the $9.3 million in lost revenue on the fiscal year 2022 SEFA. This lost revenue was incurred in fiscal year June 30, 2021 and has been excluded from the final June 30, 2022 SEFA. Recommendation -The College should implement a procedure to ensure the SEFA is complete and accurate. Views of Responsible Officials and Corrective Action Plan - Management has accepted the finding. Moving forward, internal controls will be strengthened with regard to review and recording of revenue and expense recognition. Specifically, as it relates to this instance, review of documentation from the U.S. Department of Education (DOE) as it relates to HEERF grant funding will be more closely reviewed for understanding to include verification of understanding, guidelines and procedures from the DOE and other pertinent agencies for grant funding.
CFDA Number, Federal Agency, and Program Name - U.S. Department of Education, Student Financial Assistance Cluster (Pell - 84.063 and Federal Direct Loans - 84.268) Federal Award Identification Number and Year - 2022 - 84.063 and 84.268 Pass-through Entity - N/A Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - The College has 60 days from the date it determines an enrollment status change to report to NSLDS. The enrollment reporting must be updated for changes in the data elements for the campus record and the program record and submitted electronically through the batch method, spreadsheet submittal, or the NSLDS website (Pell, 34 CFR 690.83(b)(2); Direct Loan, 34 CFR 685.309). Condition - Of the 40 students selected for enrollment reporting testing, the University did not properly update student enrollment information for 35 students in an accurate or timely manner. Questioned Costs - None Context - Out of a sample of 40 students, we noted 35 students whose graduations were not timely reported. Cause and Effect - A control was lacking to ensure information submitted to National Student Clearinghouse was completed accurately and timely. As a result, 35 student status changes were reported late Recommendation - The College should implement a process to ensure that all student status changes are reported to NSLDS in an accurate and timely fashion. Views of Responsible Officials and Planned Corrective Actions - The errors are attributed to programming embedded in the school's learning management system and delays by NSC in relaying information to NSLDS. To correct the findings, Benedict is implementing the following action plan: 1) The reporting process was temporarily moved to another campus office during a staff transition in the Registrar's Office. With a new registrar and assistant registrar in place, the process will be reassigned to the Registrar. 2) The College is scheduling a process maintenance session with the representatives from Jenzabar EX to ensure proper coding in the school's learning management system. Individualized training will also be scheduled for the Registrrar's staff to ensure a full understanding of the mechanics of the reporting system. 3) As NSC only reports status changes when the subsequent file is received (for example, May status changes are only reported to NSLDS when the June report is received), Benedict's NSC submission schedule will be amended to every 30 days throughout the entire calendar year, thereby ensuring that the triggering event allows NSLDS receipt within 60 days.
CFDA Number, Federal Agency, and Program Name - U.S. Department of Education, Student Financial Assistance Cluster (Pell - 84.063 and Federal Direct Loans - 84.268) Federal Award Identification Number and Year - 2022 - 84.063 and 84.268 Pass-through Entity - N/A Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - The College has 60 days from the date it determines an enrollment status change to report to NSLDS. The enrollment reporting must be updated for changes in the data elements for the campus record and the program record and submitted electronically through the batch method, spreadsheet submittal, or the NSLDS website (Pell, 34 CFR 690.83(b)(2); Direct Loan, 34 CFR 685.309). Condition - Of the 40 students selected for enrollment reporting testing, the University did not properly update student enrollment information for 35 students in an accurate or timely manner. Questioned Costs - None Context - Out of a sample of 40 students, we noted 35 students whose graduations were not timely reported. Cause and Effect - A control was lacking to ensure information submitted to National Student Clearinghouse was completed accurately and timely. As a result, 35 student status changes were reported late Recommendation - The College should implement a process to ensure that all student status changes are reported to NSLDS in an accurate and timely fashion. Views of Responsible Officials and Planned Corrective Actions - The errors are attributed to programming embedded in the school's learning management system and delays by NSC in relaying information to NSLDS. To correct the findings, Benedict is implementing the following action plan: 1) The reporting process was temporarily moved to another campus office during a staff transition in the Registrar's Office. With a new registrar and assistant registrar in place, the process will be reassigned to the Registrar. 2) The College is scheduling a process maintenance session with the representatives from Jenzabar EX to ensure proper coding in the school's learning management system. Individualized training will also be scheduled for the Registrrar's staff to ensure a full understanding of the mechanics of the reporting system. 3) As NSC only reports status changes when the subsequent file is received (for example, May status changes are only reported to NSLDS when the June report is received), Benedict's NSC submission schedule will be amended to every 30 days throughout the entire calendar year, thereby ensuring that the triggering event allows NSLDS receipt within 60 days.
CFDA Number, Federal Agency, and Program Name - 84.425J - U.S. Department of Education, Education Stabilization Fund - Higher Education Emergency Relief Fund Federal Award Identification Number and Year - 2022 - 84.425 J Finding Type - Material weakness Repeat Finding - No Criteria -Per 2 CFR 200.510(b), the College must prepare a schedule of federal expenditures (SEFA) for the period covered by the auditee's financial statements which must include the total federal awards expended as as determined in accordance with section 200.502. Condition - The SEFA was not complete or accurate. Questioned Costs - none Identification of How Questioned Costs Were Computed - N/A Context - As described in financial statement finding 2022-001, during fiscal year June 20, 2022, approximately $9.3 million of lost revenue was incorrectly recorded as revenue in fiscal year 2022. In addition, the College initially also incorrectly included the $9.3 million in lost revenue on the fiscal year 2022 SEFA. This lost revenue was incurred in fiscal year June 30, 2021 and has been excluded from the final June 30, 2022 SEFA. Recommendation -The College should implement a procedure to ensure the SEFA is complete and accurate. Views of Responsible Officials and Corrective Action Plan - Management has accepted the finding. Moving forward, internal controls will be strengthened with regard to review and recording of revenue and expense recognition. Specifically, as it relates to this instance, review of documentation from the U.S. Department of Education (DOE) as it relates to HEERF grant funding will be more closely reviewed for understanding to include verification of understanding, guidelines and procedures from the DOE and other pertinent agencies for grant funding.