Audit 55895

FY End
2022-06-30
Total Expended
$86.59M
Findings
4
Programs
6
Year: 2022 Accepted: 2022-12-06

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
60076 2022-001 Significant Deficiency Yes N
60077 2022-001 Significant Deficiency Yes N
636518 2022-001 Significant Deficiency Yes N
636519 2022-001 Significant Deficiency Yes N

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $70.07M Yes 1
84.063 Federal Pell Grant Program $13.68M Yes 1
84.038 Federal Perkins Loan Program $1.57M Yes 0
84.033 Federal Work-Study Program $692,750 Yes 0
84.425 Covid-19 Education Stabilization Fund $249,000 - 0
84.007 Federal Supplemental Educational Opportunity Grants $199,682 Yes 0

Contacts

Name Title Type
K6NNYBGH1BS8 Quentin Young Auditee
6065394597 Chad Kisner Auditor
No contacts on file

Notes to SEFA

Title: Note 1 - Basis of Presentation Accounting Policies: 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: University of the Cumberlands has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of University of the Cumberlands, Inc. (the University) 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 (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the consolidated financial statements.
Title: Note 2 - Federal Student Loan Programs Accounting Policies: 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: University of the Cumberlands has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The Federal Perkins Loan Program is administered directly by the University and balances and transactions relating to this program are included in the University's consolidated financial statements. For purposes of this schedule, the amount reported includes the outstanding loan balance at the beginning of the year of $1,574,882. The loans outstanding from the Federal Perkins Loan Program on June 30, 2022 were $1,331,620. The University is responsible only for the performance of certain administrative duties with respect to the Federal Direct Loan Program and, accordingly, these loans are not included in the consolidated financial statements of the University. It is not practical to determine the balance of loans outstanding to students and former students of the University under this program as of June 30, 2022. The current expenditures under the Federal Direct Loan Program of $70,065,258 are included in the accompanying Schedule of Expenditures of Federal Awards.

Finding Details

2022-001 Significant Deficiency: National Student Loan Data System (NSLDS) Report (U.S. Department of Education, William D. Ford Direct Loan Program, ALN #84.268 and Federal Pell Grant Program, ALN #84.063) (Repeat Finding 2021-001) Criteria: In accordance with 34 CFR 668.22(c) a student's withdrawal date is: (1) the date, as determined by the institution, that the student began the withdrawal process prescribed by the institution; (2) the date, as determined by the institution, that the student otherwise provided official notification to the institution, in writing or orally, of his or her intent to withdraw; (3) if the student ceases attendance without providing official notification, the mid-point of the payment period; (4) if the institution determines that a student did not begin the institution's withdrawal process or otherwise provide official notification to the institution of his or her intent to withdraw because of illness, accident, grievous personal loss, or other such circumstances beyond the student's control, the date that the institution determines is related to that circumstance; (5) If a student does not return from an approved leave of absence, the date that the institution determines the student began the leave of absence; or (6) if a student takes a leave of absence that does not meet certain requirements, the date that the student began the leave of absence. Statement of Condition: During the 2022 audit, it was noted that the University reported the incorrect date to NSLDS for the withdrawal date. Questioned Costs: Such information is not applicable for this finding since it is nonmonetary in nature. Perspective Information: The 2022 audit included a detailed testing of 40 student files, of which this significant deficiency applies to 4, indicating an error rate of 10.00%. Cause and Effect: The University used the incorrect withdrawal date in some instances, resulting in misrepresentation within the NSLDS system. Recommendation: The University should ensure that the correct withdrawal date is reported to NSLDS. View of Responsible Officials: The University of the Cumberlands has reviewed the NSLDS reporting procedures surrounding unofficial withdrawals and recognizes a deficiency. The Registrar?s Office and Financial Aid Office have determined the need for a supplemental enrollment reporting file after the end of each semester to automate the reporting of unofficial withdrawals. This additional file will lessen the number of manual corrections to withdrawal dates in NSLDS, thus increasing the level of accuracy in reporting.
2022-001 Significant Deficiency: National Student Loan Data System (NSLDS) Report (U.S. Department of Education, William D. Ford Direct Loan Program, ALN #84.268 and Federal Pell Grant Program, ALN #84.063) (Repeat Finding 2021-001) Criteria: In accordance with 34 CFR 668.22(c) a student's withdrawal date is: (1) the date, as determined by the institution, that the student began the withdrawal process prescribed by the institution; (2) the date, as determined by the institution, that the student otherwise provided official notification to the institution, in writing or orally, of his or her intent to withdraw; (3) if the student ceases attendance without providing official notification, the mid-point of the payment period; (4) if the institution determines that a student did not begin the institution's withdrawal process or otherwise provide official notification to the institution of his or her intent to withdraw because of illness, accident, grievous personal loss, or other such circumstances beyond the student's control, the date that the institution determines is related to that circumstance; (5) If a student does not return from an approved leave of absence, the date that the institution determines the student began the leave of absence; or (6) if a student takes a leave of absence that does not meet certain requirements, the date that the student began the leave of absence. Statement of Condition: During the 2022 audit, it was noted that the University reported the incorrect date to NSLDS for the withdrawal date. Questioned Costs: Such information is not applicable for this finding since it is nonmonetary in nature. Perspective Information: The 2022 audit included a detailed testing of 40 student files, of which this significant deficiency applies to 4, indicating an error rate of 10.00%. Cause and Effect: The University used the incorrect withdrawal date in some instances, resulting in misrepresentation within the NSLDS system. Recommendation: The University should ensure that the correct withdrawal date is reported to NSLDS. View of Responsible Officials: The University of the Cumberlands has reviewed the NSLDS reporting procedures surrounding unofficial withdrawals and recognizes a deficiency. The Registrar?s Office and Financial Aid Office have determined the need for a supplemental enrollment reporting file after the end of each semester to automate the reporting of unofficial withdrawals. This additional file will lessen the number of manual corrections to withdrawal dates in NSLDS, thus increasing the level of accuracy in reporting.
2022-001 Significant Deficiency: National Student Loan Data System (NSLDS) Report (U.S. Department of Education, William D. Ford Direct Loan Program, ALN #84.268 and Federal Pell Grant Program, ALN #84.063) (Repeat Finding 2021-001) Criteria: In accordance with 34 CFR 668.22(c) a student's withdrawal date is: (1) the date, as determined by the institution, that the student began the withdrawal process prescribed by the institution; (2) the date, as determined by the institution, that the student otherwise provided official notification to the institution, in writing or orally, of his or her intent to withdraw; (3) if the student ceases attendance without providing official notification, the mid-point of the payment period; (4) if the institution determines that a student did not begin the institution's withdrawal process or otherwise provide official notification to the institution of his or her intent to withdraw because of illness, accident, grievous personal loss, or other such circumstances beyond the student's control, the date that the institution determines is related to that circumstance; (5) If a student does not return from an approved leave of absence, the date that the institution determines the student began the leave of absence; or (6) if a student takes a leave of absence that does not meet certain requirements, the date that the student began the leave of absence. Statement of Condition: During the 2022 audit, it was noted that the University reported the incorrect date to NSLDS for the withdrawal date. Questioned Costs: Such information is not applicable for this finding since it is nonmonetary in nature. Perspective Information: The 2022 audit included a detailed testing of 40 student files, of which this significant deficiency applies to 4, indicating an error rate of 10.00%. Cause and Effect: The University used the incorrect withdrawal date in some instances, resulting in misrepresentation within the NSLDS system. Recommendation: The University should ensure that the correct withdrawal date is reported to NSLDS. View of Responsible Officials: The University of the Cumberlands has reviewed the NSLDS reporting procedures surrounding unofficial withdrawals and recognizes a deficiency. The Registrar?s Office and Financial Aid Office have determined the need for a supplemental enrollment reporting file after the end of each semester to automate the reporting of unofficial withdrawals. This additional file will lessen the number of manual corrections to withdrawal dates in NSLDS, thus increasing the level of accuracy in reporting.
2022-001 Significant Deficiency: National Student Loan Data System (NSLDS) Report (U.S. Department of Education, William D. Ford Direct Loan Program, ALN #84.268 and Federal Pell Grant Program, ALN #84.063) (Repeat Finding 2021-001) Criteria: In accordance with 34 CFR 668.22(c) a student's withdrawal date is: (1) the date, as determined by the institution, that the student began the withdrawal process prescribed by the institution; (2) the date, as determined by the institution, that the student otherwise provided official notification to the institution, in writing or orally, of his or her intent to withdraw; (3) if the student ceases attendance without providing official notification, the mid-point of the payment period; (4) if the institution determines that a student did not begin the institution's withdrawal process or otherwise provide official notification to the institution of his or her intent to withdraw because of illness, accident, grievous personal loss, or other such circumstances beyond the student's control, the date that the institution determines is related to that circumstance; (5) If a student does not return from an approved leave of absence, the date that the institution determines the student began the leave of absence; or (6) if a student takes a leave of absence that does not meet certain requirements, the date that the student began the leave of absence. Statement of Condition: During the 2022 audit, it was noted that the University reported the incorrect date to NSLDS for the withdrawal date. Questioned Costs: Such information is not applicable for this finding since it is nonmonetary in nature. Perspective Information: The 2022 audit included a detailed testing of 40 student files, of which this significant deficiency applies to 4, indicating an error rate of 10.00%. Cause and Effect: The University used the incorrect withdrawal date in some instances, resulting in misrepresentation within the NSLDS system. Recommendation: The University should ensure that the correct withdrawal date is reported to NSLDS. View of Responsible Officials: The University of the Cumberlands has reviewed the NSLDS reporting procedures surrounding unofficial withdrawals and recognizes a deficiency. The Registrar?s Office and Financial Aid Office have determined the need for a supplemental enrollment reporting file after the end of each semester to automate the reporting of unofficial withdrawals. This additional file will lessen the number of manual corrections to withdrawal dates in NSLDS, thus increasing the level of accuracy in reporting.