FAC Explorer

Audit 54920

FY End
2022-06-30
Total Expended
$18.77M
Findings
4
Programs
7
Organization: Whittier College (CA)
Year: 2022 Accepted: 2023-03-01
Auditor: Kpmg LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
58607 2022-001 Significant Deficiency - B
58608 2022-002 Significant Deficiency - L
635049 2022-001 Significant Deficiency - B
635050 2022-002 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $7.57M - 0
84.038 Federal Perkins Loans Program $2.78M - 0
84.063 Federal Pell Grant Program $2.25M - 0
84.033 Federal Work-Study Program $526,107 - 0
84.007 Federal Supplemental Educational Opportunity Grants $367,143 - 0
84.425 Education Stabilization Fund $313,449 Yes 0
94.006 Americorps $1,639 - 0

Contacts

Name Title Type
D9N4MUHLQES3 David Houser Auditee
5629074205 Spencer Endicott Auditor
No contacts on file

Notes to SEFA

Title: Note 3: Federal Perkins Loan Program Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) presents the activity of all federal award programs of Whittier College (the College). 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.For the purposes of the Schedule, federal awards include all grants and contracts entered into directly between the College and agencies and departments of the federal government and pass through agencies. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The College has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Facilities and administrative costs allocated to awards for the year ended June 30, 2022, were based on predetermined rates negotiated with the Colleges cognizant agencies, and are included as a component of the expenditures in the Schedule. Total loans outstanding under the Federal Perkins Loan program were $2,002,089 at June 30, 2022. The amounts included in the Schedule consist of loans outstanding at the beginning of the year and amounts and loans advanced to students during the year ended June 30, 2022, which were $0 in the current year.
Title: Note 4: Federal Direct Loans Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) presents the activity of all federal award programs of Whittier College (the College). 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.For the purposes of the Schedule, federal awards include all grants and contracts entered into directly between the College and agencies and departments of the federal government and pass through agencies. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The College has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Facilities and administrative costs allocated to awards for the year ended June 30, 2022, were based on predetermined rates negotiated with the Colleges cognizant agencies, and are included as a component of the expenditures in the Schedule. Federal Direct Loans are made by the Department of Education. The College is responsible for the performance of certain administrative duties under the Direct Loan program including origination and disbursement of loans. A summary of these loans for the year ended June 30, 2022 is as follows: Stafford loans $4,970,968 Parent loan for undergraduate students $2,602,915 Total federal direct loans $7,573,883

Finding Details

Finding 2022-001
Finding 2022-001 Allowable Costs ? Significant Deficiency in Internal Control and Instance of Noncompliance Federal Program: Education Stabilization Fund ? COVID-19 ? Higher Education Emergency Relief Funds Federal Assistance Listing Number: 84.425F ? Higher Education Emergency Relief Fund (HEERF) - Institutional Aid Portion Federal Agency: Department of Education Award Year: July 1, 2021 ? June 30, 2022 Criteria: Institutions must demonstrate that costs incurred are allowable under the relevant statutory provisions and consistent with the purpose of the ESF ?to prevent, prepare for, and respond to coronavirus.? HEERF II, HEERF III, and HEERF I funds liquidated (spent) on or after December 27, 2020. Beginning December 27, 2020, any unused HEERF I Institutional Portion funds, new HEERF II Institutional Portion funds, HEERF III Institutional Portion Funds may be used to defray expenses associated with coronavirus (including lost revenue, reimbursement for expenses already incurred, technology costs associated with a transition to distance education, faculty and staff trainings, and payroll) and to make additional financial grants to students (CRRSAA Section 314(c)(1-3); ARP Section 2003). Condition and Context: During our testwork over 47 HEERF expenditures during the current year, we identified one expenditure that was not an allowable expenditure to the HEERF grant. Isolated or Systemic: Systemic. Cause and Effect: The College?s control failed in detecting timely that unallowable costs were charged to its HEERF grant. Questioned Costs: $635.00. Whether the sampling was a statistically valid sample: The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding: No. Recommendation: We recommend that the College enhance its internal controls to ensure all expenditures charged to their HEERF grants are for allowable costs. View of Responsible Officials: As the $635.00 expenditure documentation was prepared correctly, but processed incorrectly, the College will strengthen its reconciliation procedures to ensure that only allowable expenditures are posted to the respective HEERF grant fund and that timely corrections are made.
Finding 2022-002
Finding 2022-002 Reporting ? Significant Deficiency in Internal Control and Instance of Noncompliance Federal Program: Education Stabilization Fund ? COVID-19 ? Higher Education Emergency Relief Funds Federal Assistance Listing Number: 84.425F ? Higher Education Emergency Relief Fund (HEERF) - Institutional Aid Portion Federal Agency: Department of Education Award Year: July 1, 2021 ? June 30, 2022 Criteria: The Department of Education (ED) will be collecting an annual report for HEERF grantees in April 2022. ED will share more information regarding this annual report, which will require institutions to report on their uses of HEERF I CARES Act funds, HEERF II CRRSAA funds, and HEERF III ARP funds in advance of the ARP annual reporting deadline. Condition and Context: During our test work over the HEERF annual reporting requirement, we noted the College failed to report the amounts accurately within the institutional expenditures section of the HEERF II Annual Report. Isolated or Systemic: Isolated. Cause and Effect: The College?s control failed in detecting that inaccurate and untimely information was reported to ED. Questioned Costs: None noted. Whether the sampling was a statistically valid sample: The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding: No. Recommendation: We recommend that the College enhance its internal controls to ensure all information submitted in its annual HEERF report is accurate. View of Responsible Officials: Whittier College will ensure that adequate review is performed to review the annual report completely and accurately.
Finding 2022-001
Finding 2022-001 Allowable Costs ? Significant Deficiency in Internal Control and Instance of Noncompliance Federal Program: Education Stabilization Fund ? COVID-19 ? Higher Education Emergency Relief Funds Federal Assistance Listing Number: 84.425F ? Higher Education Emergency Relief Fund (HEERF) - Institutional Aid Portion Federal Agency: Department of Education Award Year: July 1, 2021 ? June 30, 2022 Criteria: Institutions must demonstrate that costs incurred are allowable under the relevant statutory provisions and consistent with the purpose of the ESF ?to prevent, prepare for, and respond to coronavirus.? HEERF II, HEERF III, and HEERF I funds liquidated (spent) on or after December 27, 2020. Beginning December 27, 2020, any unused HEERF I Institutional Portion funds, new HEERF II Institutional Portion funds, HEERF III Institutional Portion Funds may be used to defray expenses associated with coronavirus (including lost revenue, reimbursement for expenses already incurred, technology costs associated with a transition to distance education, faculty and staff trainings, and payroll) and to make additional financial grants to students (CRRSAA Section 314(c)(1-3); ARP Section 2003). Condition and Context: During our testwork over 47 HEERF expenditures during the current year, we identified one expenditure that was not an allowable expenditure to the HEERF grant. Isolated or Systemic: Systemic. Cause and Effect: The College?s control failed in detecting timely that unallowable costs were charged to its HEERF grant. Questioned Costs: $635.00. Whether the sampling was a statistically valid sample: The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding: No. Recommendation: We recommend that the College enhance its internal controls to ensure all expenditures charged to their HEERF grants are for allowable costs. View of Responsible Officials: As the $635.00 expenditure documentation was prepared correctly, but processed incorrectly, the College will strengthen its reconciliation procedures to ensure that only allowable expenditures are posted to the respective HEERF grant fund and that timely corrections are made.
Finding 2022-002
Finding 2022-002 Reporting ? Significant Deficiency in Internal Control and Instance of Noncompliance Federal Program: Education Stabilization Fund ? COVID-19 ? Higher Education Emergency Relief Funds Federal Assistance Listing Number: 84.425F ? Higher Education Emergency Relief Fund (HEERF) - Institutional Aid Portion Federal Agency: Department of Education Award Year: July 1, 2021 ? June 30, 2022 Criteria: The Department of Education (ED) will be collecting an annual report for HEERF grantees in April 2022. ED will share more information regarding this annual report, which will require institutions to report on their uses of HEERF I CARES Act funds, HEERF II CRRSAA funds, and HEERF III ARP funds in advance of the ARP annual reporting deadline. Condition and Context: During our test work over the HEERF annual reporting requirement, we noted the College failed to report the amounts accurately within the institutional expenditures section of the HEERF II Annual Report. Isolated or Systemic: Isolated. Cause and Effect: The College?s control failed in detecting that inaccurate and untimely information was reported to ED. Questioned Costs: None noted. Whether the sampling was a statistically valid sample: The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding: No. Recommendation: We recommend that the College enhance its internal controls to ensure all information submitted in its annual HEERF report is accurate. View of Responsible Officials: Whittier College will ensure that adequate review is performed to review the annual report completely and accurately.