FAC Explorer

Audit 5904

FY End
2023-05-05
Total Expended
$46.69M
Findings
2
Programs
5
Organization: Wingate University (NC)
Year: 2023 Accepted: 2023-12-08
Auditor: Bdo USA PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
3754 2023-002 Significant Deficiency Yes C
580196 2023-002 Significant Deficiency Yes C

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $38.15M Yes 0
84.063 Federal Pell Grant Program $5.68M Yes 0
84.033 Federal Work-Study Program $424,098 Yes 1
84.425 Education Stabilization Fund $412,819 Yes 0
84.007 Federal Supplemental Educational Opportunity Grants $320,524 Yes 0

Contacts

Name Title Type
KZTTVNK9L8C1 Kristi Furr Auditee
7042338318 Stathis Poulos Auditor
No contacts on file

Notes to SEFA

Title: Subrecipients Accounting Policies: The schedule of expenditures of federal and state awards (the “Schedule”) includes the federal award activity of Wingate University under programs of the federal governments for the year ended May 31, 2023. 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”) and the requirements described in the North Carolina Need-Based Scholarship Program Audit Compliance Supplemental Guide (the “State Guidance”). Because the Schedule presents only a selected portion of the operations of Wingate University, it is not intended to and not present the consolidated financial position, changes in net assets or cash flows of Wingate University. 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 and the State Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The University has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. There were no program funds passed through the University to subrecipients during the year ended May 31, 2023.
Title: Federal Direct Student Loan Program Accounting Policies: The schedule of expenditures of federal and state awards (the “Schedule”) includes the federal award activity of Wingate University under programs of the federal governments for the year ended May 31, 2023. 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”) and the requirements described in the North Carolina Need-Based Scholarship Program Audit Compliance Supplemental Guide (the “State Guidance”). Because the Schedule presents only a selected portion of the operations of Wingate University, it is not intended to and not present the consolidated financial position, changes in net assets or cash flows of Wingate University. 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 and the State Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The University has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The University 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 University’s consolidated financial statements. It is not practicable to determine the balance of loans outstanding to students and former students of the University under these programs as of May 31, 2023.

Finding Details

Finding 2023-002
Federal Program Information: Federal Work-Study (“FWS”) Program (ALN 84.033) Criteria or Specific Requirement: C. Cash Management - Institutions are permitted to draw down Title IV funds prior to disbursing funds to eligible students and parents. The institution’s request must not exceed the amount immediately needed to disburse funds to students or parents. A disbursement of funds occurs on the date an institution credits a student’s account or pays a student or parent directly with either student financial aid funds or institutional funds. The institution must make the disbursements as soon as administratively feasible, but no later than 3 business days following the receipt of funds. Any amounts not disbursed by the end of the third business day are considered to be excess cash and generally are required to be promptly returned to the U.S. Department of Education (the “ED”) (34 CFR section 668.166(a)(1)). Excess cash includes any funds received from the ED that are deposited or transferred to the institution’s Federal account as a result of an award adjustment, cancellation, or recovery. However, an excess cash balance tolerance is allowed if that balance: (1) is less than one percent of its prior-year drawdowns; and (2) is eliminated within the next 7 calendar days (34 CFR sections 668.166(a) and (b)). Condition: Instances were identified where FWS Program funds drawn were held in excess of the allowable time frame. Cause: Administrative and internal control oversight with respect to cash management. Effect or Potential Effect: The University is not in compliance with cash management compliance requirements. Questioned Costs: None. Context: 3 instances of cash held in excess of the allowable time frame were identified for the FWS Program for the current year. Identification as a Repeat Finding: This is a repeat finding from prior year. This was reported as finding 2022-005 in the 2022 report. Recommendation: We recommend the University enhance its policies, procedures and internal controls to ensure that excess cash is returned timely. Views of Responsible Officials: The University Business Office and Financial Planning Office will review the institutional cash management policies and ensure the proper controls are in place to eliminate instances of excess cash. An additional step will be added to the process that will require CFO review and approval of calculations of draw-down amounts.
Finding 2023-002
Federal Program Information: Federal Work-Study (“FWS”) Program (ALN 84.033) Criteria or Specific Requirement: C. Cash Management - Institutions are permitted to draw down Title IV funds prior to disbursing funds to eligible students and parents. The institution’s request must not exceed the amount immediately needed to disburse funds to students or parents. A disbursement of funds occurs on the date an institution credits a student’s account or pays a student or parent directly with either student financial aid funds or institutional funds. The institution must make the disbursements as soon as administratively feasible, but no later than 3 business days following the receipt of funds. Any amounts not disbursed by the end of the third business day are considered to be excess cash and generally are required to be promptly returned to the U.S. Department of Education (the “ED”) (34 CFR section 668.166(a)(1)). Excess cash includes any funds received from the ED that are deposited or transferred to the institution’s Federal account as a result of an award adjustment, cancellation, or recovery. However, an excess cash balance tolerance is allowed if that balance: (1) is less than one percent of its prior-year drawdowns; and (2) is eliminated within the next 7 calendar days (34 CFR sections 668.166(a) and (b)). Condition: Instances were identified where FWS Program funds drawn were held in excess of the allowable time frame. Cause: Administrative and internal control oversight with respect to cash management. Effect or Potential Effect: The University is not in compliance with cash management compliance requirements. Questioned Costs: None. Context: 3 instances of cash held in excess of the allowable time frame were identified for the FWS Program for the current year. Identification as a Repeat Finding: This is a repeat finding from prior year. This was reported as finding 2022-005 in the 2022 report. Recommendation: We recommend the University enhance its policies, procedures and internal controls to ensure that excess cash is returned timely. Views of Responsible Officials: The University Business Office and Financial Planning Office will review the institutional cash management policies and ensure the proper controls are in place to eliminate instances of excess cash. An additional step will be added to the process that will require CFO review and approval of calculations of draw-down amounts.