Audit 59432

FY End
2022-05-31
Total Expended
$24.61M
Findings
2
Programs
10
Organization: Assumption University (MA)
Year: 2022 Accepted: 2022-10-16
Auditor: Rsm US LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
58353 2022-001 Significant Deficiency - L
634795 2022-001 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $16.36M Yes 0
84.425 Education Stabilization Fund $1.98M Yes 0
84.063 Federal Pell Grant Program $1.86M Yes 0
84.038 Federal Perkins Loan Program $1.32M Yes 0
84.007 Federal Supplemental Educational Opportunity Grants $436,180 Yes 0
84.129 Rehabilitation Long-Term Training $253,300 - 0
84.033 Federal Work-Study Program $246,918 Yes 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $146,637 - 0
47.074 Biological Sciences $24,772 - 0
47.076 Education and Human Resources $17,287 - 0

Contacts

Name Title Type
LCC3J3MGFGQ3 Cathleen Cullen Auditee
5087677533 Daniel Bonnette Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Assumption University (the University) under programs of the Federal government for the year ended May 31, 2022. The information in this Schedule is presented in accordance with Title 2 U.S. Code of Federal Regulations (CFR) 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 University, it is not intended to and does not present the financial position, changes in net assets or cash flows of the University. The University includes loans granted under the Federal Perkins Loan Program and Federal Direct Student Loans Program as expenditures of Federal awards. 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 auditee did not use the de minimis cost rate. FEDERAL PERKINS LOAN PROGRAM (84.038) - The federal student loan program listed below is administered directly by the University and balances and transactions relating to this program are included in the Universitys basic financial statements. Loans outstanding at the beginning of the year, the administrative cost allowance, and loans made during the year are included in the Federal expenditures presented in the Schedule. The balance of loans outstanding at May 31, 2022 consists of Federal Perkins Loan program in the amount of $1,048,449. The Federal Perkins Loan program expired on September 30, 2017. As such, there were no new loans issued or administrative cost allowance claimed under the program for the year ended May 31, 2022. There was no federal capital contribution or University match during the current year.
Title: Federal Direct Loans Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Assumption University (the University) under programs of the Federal government for the year ended May 31, 2022. The information in this Schedule is presented in accordance with Title 2 U.S. Code of Federal Regulations (CFR) 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 University, it is not intended to and does not present the financial position, changes in net assets or cash flows of the University. The University includes loans granted under the Federal Perkins Loan Program and Federal Direct Student Loans Program as expenditures of Federal awards. 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 auditee did not use the de minimis cost rate. The University distributed $16,346,140 of federally guaranteed loans to students of the University through the Federal Direct Loan Program (ALN 84.268), which includes Direct Subsidized and Unsubsidized Loans, and Direct Parent Loans for Undergraduate Students. These distributions and the related funding sources are not included in the Universitys financial statements.

Finding Details

Criteria: Reporting requirements to the DOE state that the institutional portion of HEERF is reported by quarter in the quarter funds are drawn from the G5 system and reported for the allowable categories under the grant. Condition: Amounts reported for the institutional portion by the University were originally reported in the incorrect period. Questioned Costs: None. Prevalence: 2 of 2 institutional quarterly reports tested. The sample was statistically valid. Effect: Incorrect amounts and classifications were reported to the DOE. Improper reporting could result in the DOE withholding payments to the University. Cause: Changes to the program rules, regulations and reporting for the HEERF programs were evolving throughout the different phases of the program. This issue is the result of improper tracking of those changes as they were occurring which resulted in errors in the original filing. Recommendation: We recommend the University amend the incorrect reports. The Federal funding for this program has ended. If the DOE should add additional funding or create new or similar programs, we recommend that management implement a control to regularly monitor and manage changes to rules and regulations promulgated by the DOE. View of Responsible Officials and Planned Corrective Actions: Management agrees with the finding, and corrective measures have been made.
Criteria: Reporting requirements to the DOE state that the institutional portion of HEERF is reported by quarter in the quarter funds are drawn from the G5 system and reported for the allowable categories under the grant. Condition: Amounts reported for the institutional portion by the University were originally reported in the incorrect period. Questioned Costs: None. Prevalence: 2 of 2 institutional quarterly reports tested. The sample was statistically valid. Effect: Incorrect amounts and classifications were reported to the DOE. Improper reporting could result in the DOE withholding payments to the University. Cause: Changes to the program rules, regulations and reporting for the HEERF programs were evolving throughout the different phases of the program. This issue is the result of improper tracking of those changes as they were occurring which resulted in errors in the original filing. Recommendation: We recommend the University amend the incorrect reports. The Federal funding for this program has ended. If the DOE should add additional funding or create new or similar programs, we recommend that management implement a control to regularly monitor and manage changes to rules and regulations promulgated by the DOE. View of Responsible Officials and Planned Corrective Actions: Management agrees with the finding, and corrective measures have been made.