FAC Explorer

Audit 5875

FY End
2023-05-31
Total Expended
$29.69M
Findings
6
Programs
6
Organization: Charleston Southern University and Subsidiary (CO)
Year: 2023 Accepted: 2023-12-08
Auditor: Capincrouse LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
3717 2023-001 Material Weakness - N
3718 2023-001 Material Weakness - N
3719 2023-002 - Yes E
580159 2023-001 Material Weakness - N
580160 2023-001 Material Weakness - N
580161 2023-002 - Yes E

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $22.74M Yes 2
84.063 Federal Pell Grant Program $5.04M Yes 1
84.038 Federal Perkins Loan Program $1.25M Yes 0
84.033 Federal Work-Study Program $371,157 Yes 0
84.007 Federal Supplemental Educational Opportunity Grants $271,919 Yes 0
84.425 Covid - 19 Education Stabilization Fund Heerf - Student Aid Portion $23,903 - 0

Contacts

Name Title Type
JFKHBYVHAYB4 Kary Tejeda Auditee
8438637000 Logan Sharrett, CPA Auditor
No contacts on file

Notes to SEFA

Title: RELATIONSHIP TO CONSOLIDATED FINANCIAL STATEMENTS Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Charleston Southern University and Subsidiary (University) under programs of the federal government for the year ending May 31, 2023. The information in the schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of, the basic consolidated financial statements. Expenditures in 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. 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 University is required to match certain federal assistance, as defined by the grant agreements, no such matching has been included as expenditures in the schedule. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate See the Notes to the SEFA for chart/table
Title: SUBRECIPIENTS, NON-CASH ASSISTANCE, FEDERAL INSURANCE, LOANS, AND LOAN GUARANTEES Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Charleston Southern University and Subsidiary (University) under programs of the federal government for the year ending May 31, 2023. The information in the schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of, the basic consolidated financial statements. Expenditures in 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. 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 University is required to match certain federal assistance, as defined by the grant agreements, no such matching has been included as expenditures in the schedule. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate The University did not provide any federal funds to subrecipients nor did they receive any federal non-cash assistance, insurance, loans, or loan guarantees.
Title: FEDERAL PERKINS LOAN PROGRAM Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Charleston Southern University and Subsidiary (University) under programs of the federal government for the year ending May 31, 2023. The information in the schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of, the basic consolidated financial statements. Expenditures in 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. 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 University is required to match certain federal assistance, as defined by the grant agreements, no such matching has been included as expenditures in the schedule. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate See the Notes to the SEFA for chart/table

Finding Details

Finding 2023-001
Inaccurate and Untimely Return of Title IV Funds (R2T4) Material Weakness DEPARTMENT OF EDUCATION ALN: 84.268, 84.063 Federal Award Identification #: 22-23 Financial Aid Year Condition: When students withdrew either officially or unofficially, the University did not always return unearned Title IV aid accurately or timely. Criteria: 34 CFR 668.22 Questioned Costs: $4,779 Context: Out of 25 students tested, 2 students had Pell and SEOG adjusted for lack of attendance in courses after an R2T4 had been processed with the incorrect Pell and SEOG amounts considered in the calculation. A second R2T4 was then processed with the correct amounts but used the net Federal Direct Loans (FDL) amounts rather than the original disbursements, which caused incorrect R2T4 calculations and over-returning of $1,762 in FDL and $2,594 Pell. This exception was corrected during the audit in November 2023. 1 student in a distance education program had an incorrect Pell recalculation for lack of attendance. The student attended past 60%, but an additional $861 in Pell should have been returned as the student did not have any evidence of academic activity in one class. This exception was corrected during the audit in November 2023. 1 student in a distance education program was awarded $3,272 in Pell but did not have documented academic activity to establish attendance and should have had all the aid returned. Only $3,256 was returned, so an additional $16 should have been returned. This exception was corrected during the audit in November 2023. 3 students had the correct amount returned; however, the funds were returned after the 45 day return window. The returns consisting of $7,733 in FDL and $44 in Pell were late between 2 to 11 days. 2 students who did not participate past 60% of the semester and did not meet a modular exemption had no funds returned, which resulted in an under-return of $3,902 in FDL. These exceptions were corrected during the audit in November 2023. Cause: This was an oversight by the University primarily due to turnover in staffing and the complexity of modular withdraws. Effect: Inaccurate amounts of unearned Title IV funds returned and returns of Title IV funds were not returned timely. Identification as repeat finding, if applicable: N/A Recommendation: We recommend that additional training be completed on modular withdraws as well as including a secondary review of exemption determinations to ensure accuracy. For official withdraws, while notification and completion of the R2T4 calculations were done timely, the return of funds was not, therefore we recommend that the University put procedures in place to process the returns when the calculation is completed and reviewed. We further recommend a 0-credit report be run at the end of each semester to ensure all unofficial withdrawals are followed up on so that R2T4’s are completed timely when required. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2023-001
Inaccurate and Untimely Return of Title IV Funds (R2T4) Material Weakness DEPARTMENT OF EDUCATION ALN: 84.268, 84.063 Federal Award Identification #: 22-23 Financial Aid Year Condition: When students withdrew either officially or unofficially, the University did not always return unearned Title IV aid accurately or timely. Criteria: 34 CFR 668.22 Questioned Costs: $4,779 Context: Out of 25 students tested, 2 students had Pell and SEOG adjusted for lack of attendance in courses after an R2T4 had been processed with the incorrect Pell and SEOG amounts considered in the calculation. A second R2T4 was then processed with the correct amounts but used the net Federal Direct Loans (FDL) amounts rather than the original disbursements, which caused incorrect R2T4 calculations and over-returning of $1,762 in FDL and $2,594 Pell. This exception was corrected during the audit in November 2023. 1 student in a distance education program had an incorrect Pell recalculation for lack of attendance. The student attended past 60%, but an additional $861 in Pell should have been returned as the student did not have any evidence of academic activity in one class. This exception was corrected during the audit in November 2023. 1 student in a distance education program was awarded $3,272 in Pell but did not have documented academic activity to establish attendance and should have had all the aid returned. Only $3,256 was returned, so an additional $16 should have been returned. This exception was corrected during the audit in November 2023. 3 students had the correct amount returned; however, the funds were returned after the 45 day return window. The returns consisting of $7,733 in FDL and $44 in Pell were late between 2 to 11 days. 2 students who did not participate past 60% of the semester and did not meet a modular exemption had no funds returned, which resulted in an under-return of $3,902 in FDL. These exceptions were corrected during the audit in November 2023. Cause: This was an oversight by the University primarily due to turnover in staffing and the complexity of modular withdraws. Effect: Inaccurate amounts of unearned Title IV funds returned and returns of Title IV funds were not returned timely. Identification as repeat finding, if applicable: N/A Recommendation: We recommend that additional training be completed on modular withdraws as well as including a secondary review of exemption determinations to ensure accuracy. For official withdraws, while notification and completion of the R2T4 calculations were done timely, the return of funds was not, therefore we recommend that the University put procedures in place to process the returns when the calculation is completed and reviewed. We further recommend a 0-credit report be run at the end of each semester to ensure all unofficial withdrawals are followed up on so that R2T4’s are completed timely when required. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2023-002
Aggregate Loan Limits Other Matter DEPARTMENT OF EDUCATION ALN #: 84.268 Federal Award Identification #: 22-23 Financial Aid Year Condition: A student had received federal direct loans in excess of the undergraduate level aggregate limit and was disbursed graduate level federal direct loans by the University. Criteria: 34 CFR 685.203 (d),(e) Questioned Costs: $166 Context: Out of 60 tested for eligibility and disbursement, 1 student had been flagged on their ISIR for exceeding the subsidized loan limit but the student was still awarded subsidized loans in excess of $23,000. This has been corrected in August 2023 during the audit. Cause: Turnover in staffing. The University failed to resolve the ISIR aggregate loan limit eligibility code prior to disbursing aid. Effect: The student received $166 in subsidized loans that they were not eligible to receive. Identification as repeat finding, if applicable 2022-002 Recommendation: We recommend that the University review all students flagged on their ISIR’s for being close to aggregate loan limits before disbursing federal loans to ensure the student is eligible. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2023-001
Inaccurate and Untimely Return of Title IV Funds (R2T4) Material Weakness DEPARTMENT OF EDUCATION ALN: 84.268, 84.063 Federal Award Identification #: 22-23 Financial Aid Year Condition: When students withdrew either officially or unofficially, the University did not always return unearned Title IV aid accurately or timely. Criteria: 34 CFR 668.22 Questioned Costs: $4,779 Context: Out of 25 students tested, 2 students had Pell and SEOG adjusted for lack of attendance in courses after an R2T4 had been processed with the incorrect Pell and SEOG amounts considered in the calculation. A second R2T4 was then processed with the correct amounts but used the net Federal Direct Loans (FDL) amounts rather than the original disbursements, which caused incorrect R2T4 calculations and over-returning of $1,762 in FDL and $2,594 Pell. This exception was corrected during the audit in November 2023. 1 student in a distance education program had an incorrect Pell recalculation for lack of attendance. The student attended past 60%, but an additional $861 in Pell should have been returned as the student did not have any evidence of academic activity in one class. This exception was corrected during the audit in November 2023. 1 student in a distance education program was awarded $3,272 in Pell but did not have documented academic activity to establish attendance and should have had all the aid returned. Only $3,256 was returned, so an additional $16 should have been returned. This exception was corrected during the audit in November 2023. 3 students had the correct amount returned; however, the funds were returned after the 45 day return window. The returns consisting of $7,733 in FDL and $44 in Pell were late between 2 to 11 days. 2 students who did not participate past 60% of the semester and did not meet a modular exemption had no funds returned, which resulted in an under-return of $3,902 in FDL. These exceptions were corrected during the audit in November 2023. Cause: This was an oversight by the University primarily due to turnover in staffing and the complexity of modular withdraws. Effect: Inaccurate amounts of unearned Title IV funds returned and returns of Title IV funds were not returned timely. Identification as repeat finding, if applicable: N/A Recommendation: We recommend that additional training be completed on modular withdraws as well as including a secondary review of exemption determinations to ensure accuracy. For official withdraws, while notification and completion of the R2T4 calculations were done timely, the return of funds was not, therefore we recommend that the University put procedures in place to process the returns when the calculation is completed and reviewed. We further recommend a 0-credit report be run at the end of each semester to ensure all unofficial withdrawals are followed up on so that R2T4’s are completed timely when required. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2023-001
Inaccurate and Untimely Return of Title IV Funds (R2T4) Material Weakness DEPARTMENT OF EDUCATION ALN: 84.268, 84.063 Federal Award Identification #: 22-23 Financial Aid Year Condition: When students withdrew either officially or unofficially, the University did not always return unearned Title IV aid accurately or timely. Criteria: 34 CFR 668.22 Questioned Costs: $4,779 Context: Out of 25 students tested, 2 students had Pell and SEOG adjusted for lack of attendance in courses after an R2T4 had been processed with the incorrect Pell and SEOG amounts considered in the calculation. A second R2T4 was then processed with the correct amounts but used the net Federal Direct Loans (FDL) amounts rather than the original disbursements, which caused incorrect R2T4 calculations and over-returning of $1,762 in FDL and $2,594 Pell. This exception was corrected during the audit in November 2023. 1 student in a distance education program had an incorrect Pell recalculation for lack of attendance. The student attended past 60%, but an additional $861 in Pell should have been returned as the student did not have any evidence of academic activity in one class. This exception was corrected during the audit in November 2023. 1 student in a distance education program was awarded $3,272 in Pell but did not have documented academic activity to establish attendance and should have had all the aid returned. Only $3,256 was returned, so an additional $16 should have been returned. This exception was corrected during the audit in November 2023. 3 students had the correct amount returned; however, the funds were returned after the 45 day return window. The returns consisting of $7,733 in FDL and $44 in Pell were late between 2 to 11 days. 2 students who did not participate past 60% of the semester and did not meet a modular exemption had no funds returned, which resulted in an under-return of $3,902 in FDL. These exceptions were corrected during the audit in November 2023. Cause: This was an oversight by the University primarily due to turnover in staffing and the complexity of modular withdraws. Effect: Inaccurate amounts of unearned Title IV funds returned and returns of Title IV funds were not returned timely. Identification as repeat finding, if applicable: N/A Recommendation: We recommend that additional training be completed on modular withdraws as well as including a secondary review of exemption determinations to ensure accuracy. For official withdraws, while notification and completion of the R2T4 calculations were done timely, the return of funds was not, therefore we recommend that the University put procedures in place to process the returns when the calculation is completed and reviewed. We further recommend a 0-credit report be run at the end of each semester to ensure all unofficial withdrawals are followed up on so that R2T4’s are completed timely when required. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2023-002
Aggregate Loan Limits Other Matter DEPARTMENT OF EDUCATION ALN #: 84.268 Federal Award Identification #: 22-23 Financial Aid Year Condition: A student had received federal direct loans in excess of the undergraduate level aggregate limit and was disbursed graduate level federal direct loans by the University. Criteria: 34 CFR 685.203 (d),(e) Questioned Costs: $166 Context: Out of 60 tested for eligibility and disbursement, 1 student had been flagged on their ISIR for exceeding the subsidized loan limit but the student was still awarded subsidized loans in excess of $23,000. This has been corrected in August 2023 during the audit. Cause: Turnover in staffing. The University failed to resolve the ISIR aggregate loan limit eligibility code prior to disbursing aid. Effect: The student received $166 in subsidized loans that they were not eligible to receive. Identification as repeat finding, if applicable 2022-002 Recommendation: We recommend that the University review all students flagged on their ISIR’s for being close to aggregate loan limits before disbursing federal loans to ensure the student is eligible. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.