FAC Explorer

Audit 62040

FY End
2022-06-30
Total Expended
$3.58M
Findings
6
Programs
3
Organization: Dallas Theological Seminary (TX)
Year: 2022 Accepted: 2022-10-16
Auditor: Capincrouse LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
66160 2022-001 Significant Deficiency - N
66161 2022-002 - - L
66162 2022-002 - - L
642602 2022-001 Significant Deficiency - N
642603 2022-002 - - L
642604 2022-002 - - L

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $2.51M Yes 1
84.425 Covid-19 Education Stabilization Fund Heerf - Institutional Portion $572,258 Yes 1
84.425 Covid-19 Education Stabilization Fund Heerf - Student Aid Portion $497,336 Yes 1

Contacts

Name Title Type
FRLBRGREMNP5 David Tarrant Auditee
2148875021 Dan Campbell, 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 Dallas Theological Seminary (Seminary) under programs of the federal government for the year ending June 30, 2022. 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 Seminary 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 table in SEFA Note 3.
Title: SUBRECIPIENTS, NON-CASH ASSISTANCE, FEDERAL INSURANCE, LOANS, AND LOAN GUAR Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Dallas Theological Seminary (Seminary) under programs of the federal government for the year ending June 30, 2022. 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 Seminary 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 Seminary did not provide any federal funds to subrecipients nor did they receive any federal non-cash assistance, insurance, loans, or loan guarantees.

Finding Details

Finding 2022-001
Enrollment Reporting to National Student Loan Data System (NSLDS) Significant Deficiency U.S. DEPARTMENT OF EDUCATION ALN #: 84.268, Federal Direct Student Loans Federal Award Identification #: 2021-2022 Financial Aid Year Condition: The Seminary did not accurately report all enrollment for students during the year. Criteria: 34 CFR 685.309(b) Questioned Costs: $-0- Context: 11 of 25 students did not have the correct enrollment status reported. The Seminary uses a third party servicer, and the University can see that records were created and submitted to the third party servicer for these students. The Seminary is investigating the root cause of these exceptions and is in the process of correcting the affected students. Cause: The Seminary was in the process of system conversion during the year, as well as the employee responsible for enrollment reporting left the Seminary before the audit timeframe. Additionally, the records submitted to the third party servicer do not appear to be reflected in NSLDS. Effect: Enrollment was not reported accurately for all students during the year. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend the registrar and financial aid director and the third party servicer work together to determine what the root cause of information and communication breakdowns and implement a plan to accurately report all students going forward. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2022-002
Inaccurate HEERF Annual Reporting U.S. DEPARTMENT OF EDUCATION ALN #: 84.425E, 84.425F, and 84.425N Federal Award Identification #: P425E203295, P425F202714, and P425N200047 Condition: Students who were not enrolled during the reporting period were not included in the count and dollars disbursed for emergency financial aid. Criteria: 2 CFR 200.329 Questioned Costs: $-0- Context: The underlying data was for those students currently enrolled and did not include the students who had been enrolled in a prior term and received emergency aid. The amount under reported was approximately $62,000. Cause: The underlying data had been filtered based on those currently enrolled. Effect: The table reported for emergency aid was underreported by approximately $62,000. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend the Seminary adjust the annual report when the government reopens the reporting portal to accurately reflect what was already disbursed. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2022-002
Inaccurate HEERF Annual Reporting U.S. DEPARTMENT OF EDUCATION ALN #: 84.425E, 84.425F, and 84.425N Federal Award Identification #: P425E203295, P425F202714, and P425N200047 Condition: Students who were not enrolled during the reporting period were not included in the count and dollars disbursed for emergency financial aid. Criteria: 2 CFR 200.329 Questioned Costs: $-0- Context: The underlying data was for those students currently enrolled and did not include the students who had been enrolled in a prior term and received emergency aid. The amount under reported was approximately $62,000. Cause: The underlying data had been filtered based on those currently enrolled. Effect: The table reported for emergency aid was underreported by approximately $62,000. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend the Seminary adjust the annual report when the government reopens the reporting portal to accurately reflect what was already disbursed. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2022-001
Enrollment Reporting to National Student Loan Data System (NSLDS) Significant Deficiency U.S. DEPARTMENT OF EDUCATION ALN #: 84.268, Federal Direct Student Loans Federal Award Identification #: 2021-2022 Financial Aid Year Condition: The Seminary did not accurately report all enrollment for students during the year. Criteria: 34 CFR 685.309(b) Questioned Costs: $-0- Context: 11 of 25 students did not have the correct enrollment status reported. The Seminary uses a third party servicer, and the University can see that records were created and submitted to the third party servicer for these students. The Seminary is investigating the root cause of these exceptions and is in the process of correcting the affected students. Cause: The Seminary was in the process of system conversion during the year, as well as the employee responsible for enrollment reporting left the Seminary before the audit timeframe. Additionally, the records submitted to the third party servicer do not appear to be reflected in NSLDS. Effect: Enrollment was not reported accurately for all students during the year. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend the registrar and financial aid director and the third party servicer work together to determine what the root cause of information and communication breakdowns and implement a plan to accurately report all students going forward. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2022-002
Inaccurate HEERF Annual Reporting U.S. DEPARTMENT OF EDUCATION ALN #: 84.425E, 84.425F, and 84.425N Federal Award Identification #: P425E203295, P425F202714, and P425N200047 Condition: Students who were not enrolled during the reporting period were not included in the count and dollars disbursed for emergency financial aid. Criteria: 2 CFR 200.329 Questioned Costs: $-0- Context: The underlying data was for those students currently enrolled and did not include the students who had been enrolled in a prior term and received emergency aid. The amount under reported was approximately $62,000. Cause: The underlying data had been filtered based on those currently enrolled. Effect: The table reported for emergency aid was underreported by approximately $62,000. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend the Seminary adjust the annual report when the government reopens the reporting portal to accurately reflect what was already disbursed. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.
Finding 2022-002
Inaccurate HEERF Annual Reporting U.S. DEPARTMENT OF EDUCATION ALN #: 84.425E, 84.425F, and 84.425N Federal Award Identification #: P425E203295, P425F202714, and P425N200047 Condition: Students who were not enrolled during the reporting period were not included in the count and dollars disbursed for emergency financial aid. Criteria: 2 CFR 200.329 Questioned Costs: $-0- Context: The underlying data was for those students currently enrolled and did not include the students who had been enrolled in a prior term and received emergency aid. The amount under reported was approximately $62,000. Cause: The underlying data had been filtered based on those currently enrolled. Effect: The table reported for emergency aid was underreported by approximately $62,000. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend the Seminary adjust the annual report when the government reopens the reporting portal to accurately reflect what was already disbursed. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.