FAC Explorer

Audit 55228

FY End
2022-06-30
Total Expended
$3.39M
Findings
4
Programs
5
Organization: Baptist Bible College (MO)
Year: 2022 Accepted: 2022-11-21
Auditor: Keller & Owens LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
60074 2022-001 - - E
60075 2022-002 - Yes N
636516 2022-001 - - E
636517 2022-002 - Yes N

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $1.31M Yes 0
84.063 Federal Pell Grant Program $729,843 Yes 2
84.425 Education Stabilization Fund $43,164 Yes 0
84.033 Federal Work-Study Program $35,361 Yes 0
84.007 Federal Supplemental Educational Opportunity Grants $27,180 Yes 0

Contacts

Name Title Type
S1QHNJVQVXP4 Penny Evans Auditee
4172686029 Richard A. Bili Auditor
No contacts on file

Notes to SEFA

Title: FEDERAL DIRECT STUDENT LOAN PROGRAM Accounting Policies: BASIS OF PRESENTATIONThe schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Baptist Bible College (the College), under programs of the federal government for the year ended June 30, 2022. The information in this 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 (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.The College includes loans granted under the Federal Direct Student Loans Program as expenditures of federal awards. Federal Direct Student Loan Program balances are not included in the financial statements of the College.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures 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 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. If the College is required to match certain federal assistance, as defined by grant agreements, no such matching has been included as expenditures in the Schedule. De Minimis Rate Used: N Rate Explanation: Baptist Bible College has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. During the fiscal year ended June 30, 2022, the College processed the following amount of new loans under the Federal Direct Student Loan Program (which includes Subsidized Loans, Unsubsidized Direct Student Loans, and Parents Loans for Undergraduate Students):Assistant Listing Number Amount Authorized Federal Direct Student Loan Program 84.268 $1,308,343
Title: FEDERAL PELL GRANT Accounting Policies: BASIS OF PRESENTATIONThe schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Baptist Bible College (the College), under programs of the federal government for the year ended June 30, 2022. The information in this 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 (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.The College includes loans granted under the Federal Direct Student Loans Program as expenditures of federal awards. Federal Direct Student Loan Program balances are not included in the financial statements of the College.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures 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 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. If the College is required to match certain federal assistance, as defined by grant agreements, no such matching has been included as expenditures in the Schedule. De Minimis Rate Used: N Rate Explanation: Baptist Bible College has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Included in the Federal Pell Grant expenditures is an administrative cost allowance of $750.
Title: FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANT Accounting Policies: BASIS OF PRESENTATIONThe schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Baptist Bible College (the College), under programs of the federal government for the year ended June 30, 2022. The information in this 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 (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.The College includes loans granted under the Federal Direct Student Loans Program as expenditures of federal awards. Federal Direct Student Loan Program balances are not included in the financial statements of the College.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures 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 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. If the College is required to match certain federal assistance, as defined by grant agreements, no such matching has been included as expenditures in the Schedule. De Minimis Rate Used: N Rate Explanation: Baptist Bible College has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The following is included as Federal Supplemental Educational Opportunity Grant (FSEOG) expenditures:Federal share of grants$27,180Institutional share of grants9,060Total FSEOG Expenditures$36,240
Title: FEDERAL WORK STUDY Accounting Policies: BASIS OF PRESENTATIONThe schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Baptist Bible College (the College), under programs of the federal government for the year ended June 30, 2022. The information in this 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 (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.The College includes loans granted under the Federal Direct Student Loans Program as expenditures of federal awards. Federal Direct Student Loan Program balances are not included in the financial statements of the College.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures 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 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. If the College is required to match certain federal assistance, as defined by grant agreements, no such matching has been included as expenditures in the Schedule. De Minimis Rate Used: N Rate Explanation: Baptist Bible College has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The following is included as Federal Work Study (FWS) expenditures:Federal share of Federal Work Study Wages$35,361Institutional share of Federal Work Study Wages22,771Total FWS Expenditures$58,132

Finding Details

Finding 2022-001
FINDING 2022-001 ? Verification Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Pell Grant ALN and Program Expenditures: 84.063 ($729,843) Award Number: P063P213629 Federal Award Year: July 1, 2021 to June 30, 2022 Questioned Costs: $1,000 Condition Found: The adjusted gross income was not updated to the amount reported on the tax return during the verification process for one of the forty students in our sample. Criteria: If a student is in the V1 verification group, the following items must be verified: adjusted gross income, U.S. income taxes paid, untaxed portions of IRA distributions, untaxed portions or pensions, IRA deductions and payments, tax exempt interest income, education credits, household size, the number in college, SNAP benefits, and child support paid. If discrepancies are found when reviewing these documents and amounts, the information should be updated and the student?s financial aid eligibility should be recalculated. Cause: A tax return for the student?s parents was received as part of the verification process. The tax return showed the adjusted gross income total as $39,163 while the adjusted gross income input in the ISIR information and used in the Expected Family Contribution (?EFC?) calculation was $24,400. The amount was not updated during the verification process. Possible Asserted Effect: The incorrect adjusted gross income was used in the EFC calculation. When the correct figure is used, the EFC should be 1,354. This reduced the amount of Pell the student was eligible to receive. The student was awarded $6,145 of Federal Pell Grant funds, but was only eligible to receive $5,145. There was a $1,000 overaward. Repeat Finding: This finding was not reported in the immediately prior audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: The Financial Aid Director should correct the adjusted gross income for the student in question and recalculate the EFC. The new EFC and Pell award should be calculated. Based on the results, $1,000 in Pell Grant funds should be returned to the Department of Education. Management Response: Management agrees with the auditors? finding and their recommendation. The Financial Aid Director updated the adjusted gross income and recalculated the EFC and Federal Pell Grant award for the student in question. The Financial Aid Director determined that $1,000 of Federal Pell Grant funds should be returned for this student. On September 12, 2022, $1,000 of Federal Pell Grant funds was returned to the Department of Education.
Finding 2022-002
FINDING 2022-002 ? R2T4 Calculation Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Pell Grant ALN and Program Expenditures: 84.063 ($729,843) Award Number: P063P213629 Federal Award Year: July 1, 2021 to June 30, 2022 Questioned Costs: $1,988 Condition Found: The R2T4 calculation was completed incorrectly for three of the five students in our R2T4 testing sample. The Federal Pell Grant funds disbursed were not adjusted for module courses that the students did not begin. In addition, the incorrect semester start date was used for two of the three students. Criteria: If a student withdraws before beginning attendance in all modules, the Federal Pell Grant eligibility must be recalculated. Cause: The R2T4 calculations were completed as if the students were enrolled in a traditional program instead of modules. The Federal Pell Grant recalculation was not completed for R2T4s calculated in the spring semester. Possible Asserted Effect: The R2T4 calculations were completed incorrectly. A combined total of $1,988 of Federal Pell Grant funds should be returned to the Department of Education. Repeat Finding: See Finding 2021-002 for a similar finding in the prior year. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: The Financial Aid Director should recalculate the R2T4s for the students in question. If a student did not begin a module, the Federal Pell Grant funds associated with that module should be returned to the Department of Education and excluded from aid that was disbursed or aid that could have been disbursed in the R2T4 calculation. The correct number of days in the semester should also be used. After the recalculations are complete, $1,988 of Federal Pell Grant funds should be returned to the Department of Education. The remaining R2T4 calculations completed by the College were reviewed and there were no additional errors. Management Response: Management agrees with the auditors? finding and their recommendation. The Financial Aid Director recalculated the R2T4s for the students in question. The Financial Aid Director determined that $1,988 of Federal Pell Grant funds should be returned for these students. On September 12, 2022, these funds were returned to the Department of Education. The remaining R2T4 calculations completed by the College were reviewed and there were no additional errors. The Financial Aid Director has improved R2T4 calculation procedures to ensure that the Federal Pell Grant is adjusted for module courses that a student does not begin attendance in before completing the R2T4 calculation.
Finding 2022-001
FINDING 2022-001 ? Verification Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Pell Grant ALN and Program Expenditures: 84.063 ($729,843) Award Number: P063P213629 Federal Award Year: July 1, 2021 to June 30, 2022 Questioned Costs: $1,000 Condition Found: The adjusted gross income was not updated to the amount reported on the tax return during the verification process for one of the forty students in our sample. Criteria: If a student is in the V1 verification group, the following items must be verified: adjusted gross income, U.S. income taxes paid, untaxed portions of IRA distributions, untaxed portions or pensions, IRA deductions and payments, tax exempt interest income, education credits, household size, the number in college, SNAP benefits, and child support paid. If discrepancies are found when reviewing these documents and amounts, the information should be updated and the student?s financial aid eligibility should be recalculated. Cause: A tax return for the student?s parents was received as part of the verification process. The tax return showed the adjusted gross income total as $39,163 while the adjusted gross income input in the ISIR information and used in the Expected Family Contribution (?EFC?) calculation was $24,400. The amount was not updated during the verification process. Possible Asserted Effect: The incorrect adjusted gross income was used in the EFC calculation. When the correct figure is used, the EFC should be 1,354. This reduced the amount of Pell the student was eligible to receive. The student was awarded $6,145 of Federal Pell Grant funds, but was only eligible to receive $5,145. There was a $1,000 overaward. Repeat Finding: This finding was not reported in the immediately prior audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: The Financial Aid Director should correct the adjusted gross income for the student in question and recalculate the EFC. The new EFC and Pell award should be calculated. Based on the results, $1,000 in Pell Grant funds should be returned to the Department of Education. Management Response: Management agrees with the auditors? finding and their recommendation. The Financial Aid Director updated the adjusted gross income and recalculated the EFC and Federal Pell Grant award for the student in question. The Financial Aid Director determined that $1,000 of Federal Pell Grant funds should be returned for this student. On September 12, 2022, $1,000 of Federal Pell Grant funds was returned to the Department of Education.
Finding 2022-002
FINDING 2022-002 ? R2T4 Calculation Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Pell Grant ALN and Program Expenditures: 84.063 ($729,843) Award Number: P063P213629 Federal Award Year: July 1, 2021 to June 30, 2022 Questioned Costs: $1,988 Condition Found: The R2T4 calculation was completed incorrectly for three of the five students in our R2T4 testing sample. The Federal Pell Grant funds disbursed were not adjusted for module courses that the students did not begin. In addition, the incorrect semester start date was used for two of the three students. Criteria: If a student withdraws before beginning attendance in all modules, the Federal Pell Grant eligibility must be recalculated. Cause: The R2T4 calculations were completed as if the students were enrolled in a traditional program instead of modules. The Federal Pell Grant recalculation was not completed for R2T4s calculated in the spring semester. Possible Asserted Effect: The R2T4 calculations were completed incorrectly. A combined total of $1,988 of Federal Pell Grant funds should be returned to the Department of Education. Repeat Finding: See Finding 2021-002 for a similar finding in the prior year. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: The Financial Aid Director should recalculate the R2T4s for the students in question. If a student did not begin a module, the Federal Pell Grant funds associated with that module should be returned to the Department of Education and excluded from aid that was disbursed or aid that could have been disbursed in the R2T4 calculation. The correct number of days in the semester should also be used. After the recalculations are complete, $1,988 of Federal Pell Grant funds should be returned to the Department of Education. The remaining R2T4 calculations completed by the College were reviewed and there were no additional errors. Management Response: Management agrees with the auditors? finding and their recommendation. The Financial Aid Director recalculated the R2T4s for the students in question. The Financial Aid Director determined that $1,988 of Federal Pell Grant funds should be returned for these students. On September 12, 2022, these funds were returned to the Department of Education. The remaining R2T4 calculations completed by the College were reviewed and there were no additional errors. The Financial Aid Director has improved R2T4 calculation procedures to ensure that the Federal Pell Grant is adjusted for module courses that a student does not begin attendance in before completing the R2T4 calculation.