Audit 55015

FY End
2022-06-30
Total Expended
$43.90M
Findings
8
Programs
13
Organization: Iona College (NY)
Year: 2022 Accepted: 2023-02-27
Auditor: Bdo USA LLP

Organization Exclusion Status:

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Contacts

Name Title Type
HR7QS3BWJWE5 Todd Baker Auditee
9146332008 Stathis Poulos Auditor
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Notes to SEFA

Title: Federal Direct Student Loan Program Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of Iona College under programs of the federal governments 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, Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of Iona College, it is not intended to and does not present the financial position, changes in net assets or cash flows of Iona College. 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 to reimbursement. De Minimis Rate Used: N Rate Explanation: The College has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The College is responsible only for the performance of certain administrative duties with respect to its Federal Direct Student Loan programs and, accordingly, these loans are not included in the Colleges financial statements. It is not practicable to determine the balance of loans outstanding to students and former students of the College under these programs as of June 30, 2022.

Finding Details

Federal Program Information: Federal Supplemental Education Opportunity Grants (ALN# 84.007), Federal Pell Grant Program (ALN #84.063), Federal Direct Student Loans (ALN# 84.268) Criteria or Specific Requirement: N. Special Test and Provisions ? Return of Title IV Funds: 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 aid earned by the student as of the student?s withdrawal date. Additionally, returns of Title IV funds are required to be deposited or transferred into the student financial assistance account or electronic fund transfers initiated to the U.S. Department of Education no later than 45 days after the date the institution determines the student has withdrawn. Condition: The College did not prepare certain students? return calculations properly. Cause: Administrative oversight in determining the school days to be used in calculating the percentage of refunds to be disbursed. Effect or Potential Effect: Over or underpayment of Title IV funds. Questioned Costs: Below reporting threshold. Context: For 3 of 3 students selected for testing, the amounts to return were not calculated in accordance with the requirements. Identification as a Repeat Finding: There was no similar finding identified during the prior year. Recommendation: We recommend the College enhance its procedures over the preparation and review of R2T4 calculations to ensure that the school days used in calculating the percentage of refunds are in accordance with the federal requirements. Views of Responsible Officials: Management of the College agrees with this finding. The Registrar?s office updated the Holiday Calendar schedules in PeopleSoft, the Student Information System, to ensure that institutionally scheduled breaks of 5 or more consecutive days are properly reflecting weekend days. These updates will be used to accurately calculate the percent of a term attended and federal aid earned for federal aid recipients who withdraw from the University during a term as part of the Return to Title IV aid mandatory calculations. The calendar entries will be made by the Associate Registrar and reviewed and approved by the Registrar during the academic year set up process each academic year.
Federal Program Information: Federal Supplemental Education Opportunity Grants (ALN# 84.007), Federal Pell Grant Program (ALN #84.063), Federal Direct Student Loans (ALN# 84.268) Criteria or Specific Requirement: N. Special Test and Provisions ? Return of Title IV Funds: 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 aid earned by the student as of the student?s withdrawal date. Additionally, returns of Title IV funds are required to be deposited or transferred into the student financial assistance account or electronic fund transfers initiated to the U.S. Department of Education no later than 45 days after the date the institution determines the student has withdrawn. Condition: The College did not prepare certain students? return calculations properly. Cause: Administrative oversight in determining the school days to be used in calculating the percentage of refunds to be disbursed. Effect or Potential Effect: Over or underpayment of Title IV funds. Questioned Costs: Below reporting threshold. Context: For 3 of 3 students selected for testing, the amounts to return were not calculated in accordance with the requirements. Identification as a Repeat Finding: There was no similar finding identified during the prior year. Recommendation: We recommend the College enhance its procedures over the preparation and review of R2T4 calculations to ensure that the school days used in calculating the percentage of refunds are in accordance with the federal requirements. Views of Responsible Officials: Management of the College agrees with this finding. The Registrar?s office updated the Holiday Calendar schedules in PeopleSoft, the Student Information System, to ensure that institutionally scheduled breaks of 5 or more consecutive days are properly reflecting weekend days. These updates will be used to accurately calculate the percent of a term attended and federal aid earned for federal aid recipients who withdraw from the University during a term as part of the Return to Title IV aid mandatory calculations. The calendar entries will be made by the Associate Registrar and reviewed and approved by the Registrar during the academic year set up process each academic year.
Federal Program Information: Federal Direct Student Loans (ALN# 84.268) Criteria or Specific Requirement: N. Special Tests and Provisions ? Disbursements to or on Behalf of Students - An institution is required to refund credit balances on student accounts within 14 days of the creation of the credit balance. If an institution attempts to refund the credit balance by check and the check is not cashed, the institution must return the funds to the U.S. Department of Education no later than 240 days after the date the school issued the check. Condition: The College did not pay a certain student his Title IV credit balance within the required timeframe. Cause: An administrative oversight resulted in the College erroneously crediting a student?s account with Federal Direct Loans program funds prior to the student having received entrance counseling. This matter was resolved subsequent to the 14-day refund requirement. Effect or Potential Effect: The College was not in compliance with the Title IV credit balance payment requirements. Questioned Costs: None. Context: For 1 of 25 credit balances tested, the College did not refund the student within the required 14-day timeframe. Identification as a Repeat Finding: There was no similar finding identified during the prior year. Recommendation: We recommend the College enhance its procedures to ensure that Title IV credit balances are paid timely. Views of Responsible Officials: Management of the College agrees with the finding. In this instance, there was a manual intervention which caused a loan to credit to the student account. A decision was made to leave the credit but not refund as a motivation for the student to complete the required Entrance Counseling. The student subsequently completed the Entrance Counseling when the loan credit was reversed. As soon as the Entrance Counseling was completed the loan was recredited and the refund was processed within the appropriate timeframe. The individual who made the decision to not refund is no longer with the University. Staff have been trained that, unless the borrower has completed all requirements, loans cannot be credited to an account and the ?do not refund? option is not an appropriate tool in such an instance.
Federal Program Information: Federal Supplemental Education Opportunity Grants (ALN# 84.007), Federal Pell Grant Program (ALN #84.063), Federal Direct Student Loans (ALN# 84.268) Criteria or Specific Requirement: N. Special Test and Provisions ? Return of Title IV Funds: 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 aid earned by the student as of the student?s withdrawal date. Additionally, returns of Title IV funds are required to be deposited or transferred into the student financial assistance account or electronic fund transfers initiated to the U.S. Department of Education no later than 45 days after the date the institution determines the student has withdrawn. Condition: The College did not prepare certain students? return calculations properly. Cause: Administrative oversight in determining the school days to be used in calculating the percentage of refunds to be disbursed. Effect or Potential Effect: Over or underpayment of Title IV funds. Questioned Costs: Below reporting threshold. Context: For 3 of 3 students selected for testing, the amounts to return were not calculated in accordance with the requirements. Identification as a Repeat Finding: There was no similar finding identified during the prior year. Recommendation: We recommend the College enhance its procedures over the preparation and review of R2T4 calculations to ensure that the school days used in calculating the percentage of refunds are in accordance with the federal requirements. Views of Responsible Officials: Management of the College agrees with this finding. The Registrar?s office updated the Holiday Calendar schedules in PeopleSoft, the Student Information System, to ensure that institutionally scheduled breaks of 5 or more consecutive days are properly reflecting weekend days. These updates will be used to accurately calculate the percent of a term attended and federal aid earned for federal aid recipients who withdraw from the University during a term as part of the Return to Title IV aid mandatory calculations. The calendar entries will be made by the Associate Registrar and reviewed and approved by the Registrar during the academic year set up process each academic year.
Federal Program Information: Federal Supplemental Education Opportunity Grants (ALN# 84.007), Federal Pell Grant Program (ALN #84.063), Federal Direct Student Loans (ALN# 84.268) Criteria or Specific Requirement: N. Special Test and Provisions ? Return of Title IV Funds: 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 aid earned by the student as of the student?s withdrawal date. Additionally, returns of Title IV funds are required to be deposited or transferred into the student financial assistance account or electronic fund transfers initiated to the U.S. Department of Education no later than 45 days after the date the institution determines the student has withdrawn. Condition: The College did not prepare certain students? return calculations properly. Cause: Administrative oversight in determining the school days to be used in calculating the percentage of refunds to be disbursed. Effect or Potential Effect: Over or underpayment of Title IV funds. Questioned Costs: Below reporting threshold. Context: For 3 of 3 students selected for testing, the amounts to return were not calculated in accordance with the requirements. Identification as a Repeat Finding: There was no similar finding identified during the prior year. Recommendation: We recommend the College enhance its procedures over the preparation and review of R2T4 calculations to ensure that the school days used in calculating the percentage of refunds are in accordance with the federal requirements. Views of Responsible Officials: Management of the College agrees with this finding. The Registrar?s office updated the Holiday Calendar schedules in PeopleSoft, the Student Information System, to ensure that institutionally scheduled breaks of 5 or more consecutive days are properly reflecting weekend days. These updates will be used to accurately calculate the percent of a term attended and federal aid earned for federal aid recipients who withdraw from the University during a term as part of the Return to Title IV aid mandatory calculations. The calendar entries will be made by the Associate Registrar and reviewed and approved by the Registrar during the academic year set up process each academic year.
Federal Program Information: Federal Supplemental Education Opportunity Grants (ALN# 84.007), Federal Pell Grant Program (ALN #84.063), Federal Direct Student Loans (ALN# 84.268) Criteria or Specific Requirement: N. Special Test and Provisions ? Return of Title IV Funds: 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 aid earned by the student as of the student?s withdrawal date. Additionally, returns of Title IV funds are required to be deposited or transferred into the student financial assistance account or electronic fund transfers initiated to the U.S. Department of Education no later than 45 days after the date the institution determines the student has withdrawn. Condition: The College did not prepare certain students? return calculations properly. Cause: Administrative oversight in determining the school days to be used in calculating the percentage of refunds to be disbursed. Effect or Potential Effect: Over or underpayment of Title IV funds. Questioned Costs: Below reporting threshold. Context: For 3 of 3 students selected for testing, the amounts to return were not calculated in accordance with the requirements. Identification as a Repeat Finding: There was no similar finding identified during the prior year. Recommendation: We recommend the College enhance its procedures over the preparation and review of R2T4 calculations to ensure that the school days used in calculating the percentage of refunds are in accordance with the federal requirements. Views of Responsible Officials: Management of the College agrees with this finding. The Registrar?s office updated the Holiday Calendar schedules in PeopleSoft, the Student Information System, to ensure that institutionally scheduled breaks of 5 or more consecutive days are properly reflecting weekend days. These updates will be used to accurately calculate the percent of a term attended and federal aid earned for federal aid recipients who withdraw from the University during a term as part of the Return to Title IV aid mandatory calculations. The calendar entries will be made by the Associate Registrar and reviewed and approved by the Registrar during the academic year set up process each academic year.
Federal Program Information: Federal Direct Student Loans (ALN# 84.268) Criteria or Specific Requirement: N. Special Tests and Provisions ? Disbursements to or on Behalf of Students - An institution is required to refund credit balances on student accounts within 14 days of the creation of the credit balance. If an institution attempts to refund the credit balance by check and the check is not cashed, the institution must return the funds to the U.S. Department of Education no later than 240 days after the date the school issued the check. Condition: The College did not pay a certain student his Title IV credit balance within the required timeframe. Cause: An administrative oversight resulted in the College erroneously crediting a student?s account with Federal Direct Loans program funds prior to the student having received entrance counseling. This matter was resolved subsequent to the 14-day refund requirement. Effect or Potential Effect: The College was not in compliance with the Title IV credit balance payment requirements. Questioned Costs: None. Context: For 1 of 25 credit balances tested, the College did not refund the student within the required 14-day timeframe. Identification as a Repeat Finding: There was no similar finding identified during the prior year. Recommendation: We recommend the College enhance its procedures to ensure that Title IV credit balances are paid timely. Views of Responsible Officials: Management of the College agrees with the finding. In this instance, there was a manual intervention which caused a loan to credit to the student account. A decision was made to leave the credit but not refund as a motivation for the student to complete the required Entrance Counseling. The student subsequently completed the Entrance Counseling when the loan credit was reversed. As soon as the Entrance Counseling was completed the loan was recredited and the refund was processed within the appropriate timeframe. The individual who made the decision to not refund is no longer with the University. Staff have been trained that, unless the borrower has completed all requirements, loans cannot be credited to an account and the ?do not refund? option is not an appropriate tool in such an instance.
Federal Program Information: Federal Supplemental Education Opportunity Grants (ALN# 84.007), Federal Pell Grant Program (ALN #84.063), Federal Direct Student Loans (ALN# 84.268) Criteria or Specific Requirement: N. Special Test and Provisions ? Return of Title IV Funds: 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 aid earned by the student as of the student?s withdrawal date. Additionally, returns of Title IV funds are required to be deposited or transferred into the student financial assistance account or electronic fund transfers initiated to the U.S. Department of Education no later than 45 days after the date the institution determines the student has withdrawn. Condition: The College did not prepare certain students? return calculations properly. Cause: Administrative oversight in determining the school days to be used in calculating the percentage of refunds to be disbursed. Effect or Potential Effect: Over or underpayment of Title IV funds. Questioned Costs: Below reporting threshold. Context: For 3 of 3 students selected for testing, the amounts to return were not calculated in accordance with the requirements. Identification as a Repeat Finding: There was no similar finding identified during the prior year. Recommendation: We recommend the College enhance its procedures over the preparation and review of R2T4 calculations to ensure that the school days used in calculating the percentage of refunds are in accordance with the federal requirements. Views of Responsible Officials: Management of the College agrees with this finding. The Registrar?s office updated the Holiday Calendar schedules in PeopleSoft, the Student Information System, to ensure that institutionally scheduled breaks of 5 or more consecutive days are properly reflecting weekend days. These updates will be used to accurately calculate the percent of a term attended and federal aid earned for federal aid recipients who withdraw from the University during a term as part of the Return to Title IV aid mandatory calculations. The calendar entries will be made by the Associate Registrar and reviewed and approved by the Registrar during the academic year set up process each academic year.