Audit 54839

FY End
2022-06-30
Total Expended
$187.17M
Findings
2
Programs
50
Organization: Loma Linda University (CA)
Year: 2022 Accepted: 2023-03-14

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
60332 2022-002 Material Weakness - P
636774 2022-002 Material Weakness - P

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $133.81M Yes 0
93.342 Health Professions Student Loans, Including Primary Care Loans and Loans for Disadvantaged Students $20.60M Yes 0
93.364 Nursing Student Loans $6.21M Yes 0
93.498 Covid-19 - Provider Relief Fund and American Rescue Plan (arp) Rural Distribution $2.87M Yes 0
84.063 Federal Pell Grant Program $1.83M Yes 0
84.038 Federal Perkins Loan Program $1.60M Yes 0
84.033 Federal Work-Study Program $1.35M Yes 0
93.853 Extramural Research Programs in the Neurosciences and Neurological Disorders $1.17M - 0
93.732 Mental and Behavioral Health Education and Training Grants $1.11M Yes 1
93.866 Aging Research $1.08M - 0
93.247 Advanced Nursing Education Workforce Grant Program $830,926 Yes 0
93.925 Scholarships for Health Professions Students From Disadvantaged Backgrounds $630,910 Yes 0
93.859 Biomedical Research and Research Training $597,477 - 0
93.191 Graduate Psychology Education $490,555 - 0
43.003 Exploration $473,025 - 0
93.838 Lung Diseases Research $454,277 - 0
93.884 Grants for Primary Care Training and Enhancement $451,833 - 0
93.396 Cancer Biology Research $352,118 - 0
93.059 Training in General, Pediatric, and Public Health Dentistry $300,253 - 0
93.924 Ryan White Hiv/aids Dental Reimbursement and Community Based Dental Partnership Grants $285,081 - 0
97.036 Covid-19 - Disaster Grants - Public Assistance (presidentially Declared Disasters) $279,017 - 0
93.989 International Research and Research Training $240,437 - 0
93.213 Research and Training in Complementary and Integrative Health $209,563 - 0
84.425 Covid-19 - Education Stabilization Fund $206,858 Yes 0
93.394 Cancer Detection and Diagnosis Research $114,699 - 0
93.359 Nurse Education, Practice Quality and Retention Grants $99,530 - 0
84.007 Federal Supplemental Educational Opportunity Grants $92,249 Yes 0
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $65,533 - 0
93.011 National Organizations of State and Local Officials $43,645 - 0
93.264 Nurse Faculty Loan Program (nflp) $41,574 Yes 0
81.RD Slac National Accelerator Laboratory $25,183 - 0
93.889 National Bioterrorism Hospital Preparedness Program $24,552 - 0
93.847 Diabetes, Digestive, and Kidney Diseases Extramural Research $24,109 - 0
93.855 Allergy and Infectious Diseases Research $23,969 - 0
93.RD Nih Cog Chair Grant $23,842 - 0
14.RD Children in Hud-Assisted Household $15,539 - 0
93.837 Cardiovascular Diseases Research $12,388 - 0
93.398 Cancer Research Manpower $12,162 - 0
93.242 Mental Health Research Grants $8,297 - 0
93.307 Minority Health and Health Disparities Research $5,713 - 0
64.RD Veterans Affairs $5,233 - 0
15.645 Marine Turtle Conservation Fund $3,309 - 0
93.121 Oral Diseases and Disorders Research $3,290 - 0
93.RD Covid-19 - Building Covid-19 Vaccine Confidence Among Nurses and Communities $3,012 - 0
93.846 Arthritis, Musculoskeletal and Skin Diseases Research $2,090 - 0
93.395 Cancer Treatment Research $1,393 - 0
43.007 Space Operations $901 - 0
12.RD Multicenter Randomized Trial $562 - 0
93.867 Vision Research $390 - 0
93.865 Child Health and Human Development Extramural Research $54 - 0

Contacts

Name Title Type
SZAKFNU35ZX5 Andrew Ray Auditee
9096514878 Scott Enos Auditor
No contacts on file

Notes to SEFA

Title: 3. Federal Student Loan Programs Accounting Policies: 1. Summary of Significant Accounting Policies: Basis of Accounting: The accompanying Schedule of Expenditures of Federal Awards (SEFA) includes the federal grant activity of Loma Linda University and LLUH-SB, Inc. and is presented on the accrual basis of accounting. The information in the SEFA 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 Requirement for Federal Awards (Uniform Guidance). The SEFA does not include payments received under the traditional Medicare and Medicaid reimbursement programs, as these programs are outside the scope of the Uniform Guidance. There were no donated goods and personal protective equipment received from federal sources that required recognition or disclosure in the notes to the SEFA. De Minimis Rate Used: N Rate Explanation: 2. Indirect Costs: Loma Linda University and LLUH-SB, Inc. does not use the 10 percent de minimis indirect cost rate provided for in the Uniform Guidance. 3. Federal Student Loan Programs: The federal student loan programs listed subsequently are administered directly by Loma Linda University and LLUH-SB, Inc. and balances and transactions relating to these programs are included in Loma Linda University and LLUH-SB, Inc.'s combined financial statements. The outstanding loan balances at July 1, 2021, and the loans awarded for the fiscal year ended June 30, 2022, are considered current year federal expenditures. These amounts are reported in the SEFA. The balance of loans outstanding at June 30, 2022, consists of: See the Notes to the SEFA for table. During the fiscal year ended June 30, 2022, Loma Linda University and LLUH-SB, Inc. processed $133,805,365 of new loans under the Federal Direct Student Loans program (Assistance Listing Number 84.268). Since these loan programs are administered by outside financial institutions, new loans made in the fiscal year ended June 30, 2022, relating to these programs are considered current year federal expenditures, whereas the outstanding loan balances are not. The new loans made in the fiscal year ended June 30, 2022, are reported in the SEFA.
Title: 4. Assistance Listing Numbers Accounting Policies: 1. Summary of Significant Accounting Policies: Basis of Accounting: The accompanying Schedule of Expenditures of Federal Awards (SEFA) includes the federal grant activity of Loma Linda University and LLUH-SB, Inc. and is presented on the accrual basis of accounting. The information in the SEFA 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 Requirement for Federal Awards (Uniform Guidance). The SEFA does not include payments received under the traditional Medicare and Medicaid reimbursement programs, as these programs are outside the scope of the Uniform Guidance. There were no donated goods and personal protective equipment received from federal sources that required recognition or disclosure in the notes to the SEFA. De Minimis Rate Used: N Rate Explanation: 2. Indirect Costs: Loma Linda University and LLUH-SB, Inc. does not use the 10 percent de minimis indirect cost rate provided for in the Uniform Guidance. 4. Assistance Listing Numbers: Research and Development programs included in the SEFA are presented by federal agency and major subdivision within the federal agency. Pass-through awards have been presented by pass-through entity, Assistance Listing Number, and sponsors award number, when available. In accordance with instruction distributed by the Federal Audit Clearinghouse, when Assistance Listing Numbers are not available, the federal awards are presented by agency and the suffix U followed by a two-digit number (e.g., U01, U02, etc.) for the federal identification numbers. If the federal program is part of the research and development cluster and the Assistance Listing Number is unknown, the federal awards are presented by agency and the suffix RD in the Assistance Listing three-digit extension field.
Title: 5. Provider Relief Fund Accounting Policies: 1. Summary of Significant Accounting Policies: Basis of Accounting: The accompanying Schedule of Expenditures of Federal Awards (SEFA) includes the federal grant activity of Loma Linda University and LLUH-SB, Inc. and is presented on the accrual basis of accounting. The information in the SEFA 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 Requirement for Federal Awards (Uniform Guidance). The SEFA does not include payments received under the traditional Medicare and Medicaid reimbursement programs, as these programs are outside the scope of the Uniform Guidance. There were no donated goods and personal protective equipment received from federal sources that required recognition or disclosure in the notes to the SEFA. De Minimis Rate Used: N Rate Explanation: 2. Indirect Costs: Loma Linda University and LLUH-SB, Inc. does not use the 10 percent de minimis indirect cost rate provided for in the Uniform Guidance. 5. Provider Relief Fund: The amount presented on the SEFA for Assistance Listing Number 93.498, COVID-19 - Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (PRF Funds), is for the year ended June 30, 2022. The amount presented reconciles to the Provider Relief Fund (PRF) information reported to the Health Resources and Services Administration (HRSA) as follows: See the Notes to the SEFA for table. Health and Human Services (HHS) has indicated the PRF Funds on the SEFA be reported corresponding to reporting requirements of the HRSA PRF Reporting Portal. Payments from HHS for PRF are assigned to Payment Received Periods (each, a Period) based upon the date each payment from the PRF was received. Each Period has a specified Period of Availability and timing of reporting requirements. Entities report into the HRSA PRF Reporting Portal after each Periods deadline to use the funds (i.e., after the end of the Period of Availability). The SEFA includes $2,867,710 of PRF Funds received from HHS between July 1, 2020 to June 30, 2021. In accordance with guidance from HHS, these amounts are presented as Period 2. Such amounts were recognized as sales and service income in Loma Linda University and LLUH-SB, Inc's combined financial statements in the year ended June 30, 2021.

Finding Details

Finding 2022-002: Internal control deficiency and noncompliance over amounts reported in the Schedule of Expenditures of Federal Awards (SEFA). Identification of the federal program: Assistance Listing Number 93.732: ? Mental and Behavioral Health Education and Training Grants ? US Department of Health and Human Services ? Federal Award Identification Number: o T2537600 ? Federal Award Year ? July 1, 2020 to June 30, 2025 o MC142086 ? Federal Award Year ? July 1, 2021 to June 30, 2025 Criteria or specific requirement (including statutory, regulatory or other citation): Title 2, Subtitle A Chapter II Part 200 Subpart D Section 200.303 Internal Controls. The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Title 2, Subtitle A Chapter II Part 200 Subpart F Section 200.502 Basis for determining Federal awards expended. (a) Determining Federal awards expended. The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Condition: During our testing over the SEFA, we observed management did not have effective internal controls in place to ensure accurate reporting of expenditures in the SEFA. This resulted in the incorrect amount reported in the SEFA. Cause: Management did not have effective internal controls in place to ensure accurate reporting of expenditures in the SEFA. Effect or potential effect: The expenditures were incorrectly reported in the SEFA. Questioned costs: None. Context: During our testing over the SEFA, we observed the incorrect balance was reported on the SEFA as management included $235,330 in out-of-period expenditures that related to June 30, 2021, and did not include $306,646 in expenditures that related to June 30, 2022. The expenditures that are required to be on the SEFA should be based on the service period of July 1, 2021 to June 30, 2022. Management?s internal control over the review of the SEFA did not identify this incorrect reporting. The amount reported in the SEFA was subsequently corrected and the corrected amount is reflected in the data collection form. Identification as a repeat finding, if applicable: No. Recommendation: Management should develop and implement internal controls to ensure the completeness and accuracy of the SEFA. Views of responsible officials: These out-of-period expenditures were not captured in the financial records of the related fiscal year. An additional review process of the SEFA will be implemented and performed by management to ensure the SEFA contains complete and accurate reporting of expenditures.
Finding 2022-002: Internal control deficiency and noncompliance over amounts reported in the Schedule of Expenditures of Federal Awards (SEFA). Identification of the federal program: Assistance Listing Number 93.732: ? Mental and Behavioral Health Education and Training Grants ? US Department of Health and Human Services ? Federal Award Identification Number: o T2537600 ? Federal Award Year ? July 1, 2020 to June 30, 2025 o MC142086 ? Federal Award Year ? July 1, 2021 to June 30, 2025 Criteria or specific requirement (including statutory, regulatory or other citation): Title 2, Subtitle A Chapter II Part 200 Subpart D Section 200.303 Internal Controls. The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Title 2, Subtitle A Chapter II Part 200 Subpart F Section 200.502 Basis for determining Federal awards expended. (a) Determining Federal awards expended. The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Condition: During our testing over the SEFA, we observed management did not have effective internal controls in place to ensure accurate reporting of expenditures in the SEFA. This resulted in the incorrect amount reported in the SEFA. Cause: Management did not have effective internal controls in place to ensure accurate reporting of expenditures in the SEFA. Effect or potential effect: The expenditures were incorrectly reported in the SEFA. Questioned costs: None. Context: During our testing over the SEFA, we observed the incorrect balance was reported on the SEFA as management included $235,330 in out-of-period expenditures that related to June 30, 2021, and did not include $306,646 in expenditures that related to June 30, 2022. The expenditures that are required to be on the SEFA should be based on the service period of July 1, 2021 to June 30, 2022. Management?s internal control over the review of the SEFA did not identify this incorrect reporting. The amount reported in the SEFA was subsequently corrected and the corrected amount is reflected in the data collection form. Identification as a repeat finding, if applicable: No. Recommendation: Management should develop and implement internal controls to ensure the completeness and accuracy of the SEFA. Views of responsible officials: These out-of-period expenditures were not captured in the financial records of the related fiscal year. An additional review process of the SEFA will be implemented and performed by management to ensure the SEFA contains complete and accurate reporting of expenditures.