Audit 6283

FY End
2023-06-30
Total Expended
$1.06M
Findings
4
Programs
3
Year: 2023 Accepted: 2023-12-12

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
3983 2023-001 - Yes NP
3984 2023-001 - Yes NP
580425 2023-001 - Yes NP
580426 2023-001 - Yes NP

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $563,808 Yes 1
84.063 Federal Pell Grant Program $373,699 Yes 1
84.425 Education Stabilization Fund $124,863 - 0

Contacts

Name Title Type
G86BAJZZNAJ1 Richard Hovater Auditee
9103235614 Richard A. Bili Auditor
No contacts on file

Notes to SEFA

Title: FEDERAL DIRECT STUDENT LOAN PROGRAM Accounting Policies: The schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Carolina College of Biblical Studies (the “College”), under programs of the federal government for the year ended June 30, 2023. The information in this Schedule is presented in accordance with the requirements Title 2 U.S. Code of Federal Regulations, 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 College, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the College. The College includes loans granted under the Federal Direct Student Loans Program as expenditures of federal awards. Federal Direct Student Loan Program balances are not included in the financial statements of the College. 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 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 College is required to match certain federal assistance, as defined by grant agreements, no such matching has been included as expenditures in the Schedule. De Minimis Rate Used: N Rate Explanation: The College used the Department of Education formulas to determine the Administrative Cost Allowance During the fiscal year ended June 30, 2023, the College processed the following amount of new loans under the Federal Direct Student Loan Program (which includes Subsidized Loans, Unsubsidized Direct Student Loans, and Parents’ Loans for Undergraduate Students): See Notes to the SEFA for chart/table.
Title: FEDERAL PELL GRANT Accounting Policies: The schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Carolina College of Biblical Studies (the “College”), under programs of the federal government for the year ended June 30, 2023. The information in this Schedule is presented in accordance with the requirements Title 2 U.S. Code of Federal Regulations, 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 College, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the College. The College includes loans granted under the Federal Direct Student Loans Program as expenditures of federal awards. Federal Direct Student Loan Program balances are not included in the financial statements of the College. 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 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 College is required to match certain federal assistance, as defined by grant agreements, no such matching has been included as expenditures in the Schedule. De Minimis Rate Used: N Rate Explanation: The College used the Department of Education formulas to determine the Administrative Cost Allowance Included in the Federal Pell Grant expenditures is an administrative cost allowance of $410.

Finding Details

Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Direct Student Loan Program and Federal Pell Grant Program AL# and Program Expenditure: 84.268 ($563,808) and 84.063 ($373,699) Award Number: P268K237533 and P063P227533 Federal Award Year: July 1, 2022 to June 30, 202 Questioned Costs: $-0- Condition Found: The Common Origination and Disbursement System (“COD”) disbursement date did not agree with the disbursement date on accounts for twelve of the twelve students receiving Federal Direct Loans and thirteen of the fourteen students receiving Federal Pell Grant funds in our sample. A total of nineteen students were affected by this finding. Criteria: The disbursement date to be reported to the COD is the date that the institution credits funds to a student’s account or pays funds to a student or parent directly. Cause: The staff misunderstood the regulations and believed they had three days to post the funds after the funds were received in the bank account. However, the posted disbursement date did not agree with disbursement date posted in COD. Possible Asserted Effect: The disbursement date in COD is the date interest begins accruing on the Federal Direct Loans. In order for the interest calculation to be accurate, the disbursement date in COD should be the date the students received the loan funds. Repeat Finding: See Finding 2022-003 for a similar finding in the prior year. While the findings were similar, the cause was different in each year. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: The Student Financial Aid Director should correct the disbursement dates on the student accounts so that the dates agree with the COD disbursement dates. Management Response: The Vice President of Finance corrected the disbursement dates for the students in question in September 2023. Going forward, the Student Financial Aid Office and Business Office will coordinate the drawdown of funds, reporting to COD, and posting to student accounts. The personnel of the College understands that while on the cash advance method to disburse funds, they have three business days from the date the funds are received to post the funds to the student accounts. However, the disbursement date on the student account and in COD still must agree.
Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Direct Student Loan Program and Federal Pell Grant Program AL# and Program Expenditure: 84.268 ($563,808) and 84.063 ($373,699) Award Number: P268K237533 and P063P227533 Federal Award Year: July 1, 2022 to June 30, 202 Questioned Costs: $-0- Condition Found: The Common Origination and Disbursement System (“COD”) disbursement date did not agree with the disbursement date on accounts for twelve of the twelve students receiving Federal Direct Loans and thirteen of the fourteen students receiving Federal Pell Grant funds in our sample. A total of nineteen students were affected by this finding. Criteria: The disbursement date to be reported to the COD is the date that the institution credits funds to a student’s account or pays funds to a student or parent directly. Cause: The staff misunderstood the regulations and believed they had three days to post the funds after the funds were received in the bank account. However, the posted disbursement date did not agree with disbursement date posted in COD. Possible Asserted Effect: The disbursement date in COD is the date interest begins accruing on the Federal Direct Loans. In order for the interest calculation to be accurate, the disbursement date in COD should be the date the students received the loan funds. Repeat Finding: See Finding 2022-003 for a similar finding in the prior year. While the findings were similar, the cause was different in each year. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: The Student Financial Aid Director should correct the disbursement dates on the student accounts so that the dates agree with the COD disbursement dates. Management Response: The Vice President of Finance corrected the disbursement dates for the students in question in September 2023. Going forward, the Student Financial Aid Office and Business Office will coordinate the drawdown of funds, reporting to COD, and posting to student accounts. The personnel of the College understands that while on the cash advance method to disburse funds, they have three business days from the date the funds are received to post the funds to the student accounts. However, the disbursement date on the student account and in COD still must agree.
Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Direct Student Loan Program and Federal Pell Grant Program AL# and Program Expenditure: 84.268 ($563,808) and 84.063 ($373,699) Award Number: P268K237533 and P063P227533 Federal Award Year: July 1, 2022 to June 30, 202 Questioned Costs: $-0- Condition Found: The Common Origination and Disbursement System (“COD”) disbursement date did not agree with the disbursement date on accounts for twelve of the twelve students receiving Federal Direct Loans and thirteen of the fourteen students receiving Federal Pell Grant funds in our sample. A total of nineteen students were affected by this finding. Criteria: The disbursement date to be reported to the COD is the date that the institution credits funds to a student’s account or pays funds to a student or parent directly. Cause: The staff misunderstood the regulations and believed they had three days to post the funds after the funds were received in the bank account. However, the posted disbursement date did not agree with disbursement date posted in COD. Possible Asserted Effect: The disbursement date in COD is the date interest begins accruing on the Federal Direct Loans. In order for the interest calculation to be accurate, the disbursement date in COD should be the date the students received the loan funds. Repeat Finding: See Finding 2022-003 for a similar finding in the prior year. While the findings were similar, the cause was different in each year. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: The Student Financial Aid Director should correct the disbursement dates on the student accounts so that the dates agree with the COD disbursement dates. Management Response: The Vice President of Finance corrected the disbursement dates for the students in question in September 2023. Going forward, the Student Financial Aid Office and Business Office will coordinate the drawdown of funds, reporting to COD, and posting to student accounts. The personnel of the College understands that while on the cash advance method to disburse funds, they have three business days from the date the funds are received to post the funds to the student accounts. However, the disbursement date on the student account and in COD still must agree.
Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Direct Student Loan Program and Federal Pell Grant Program AL# and Program Expenditure: 84.268 ($563,808) and 84.063 ($373,699) Award Number: P268K237533 and P063P227533 Federal Award Year: July 1, 2022 to June 30, 202 Questioned Costs: $-0- Condition Found: The Common Origination and Disbursement System (“COD”) disbursement date did not agree with the disbursement date on accounts for twelve of the twelve students receiving Federal Direct Loans and thirteen of the fourteen students receiving Federal Pell Grant funds in our sample. A total of nineteen students were affected by this finding. Criteria: The disbursement date to be reported to the COD is the date that the institution credits funds to a student’s account or pays funds to a student or parent directly. Cause: The staff misunderstood the regulations and believed they had three days to post the funds after the funds were received in the bank account. However, the posted disbursement date did not agree with disbursement date posted in COD. Possible Asserted Effect: The disbursement date in COD is the date interest begins accruing on the Federal Direct Loans. In order for the interest calculation to be accurate, the disbursement date in COD should be the date the students received the loan funds. Repeat Finding: See Finding 2022-003 for a similar finding in the prior year. While the findings were similar, the cause was different in each year. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: The Student Financial Aid Director should correct the disbursement dates on the student accounts so that the dates agree with the COD disbursement dates. Management Response: The Vice President of Finance corrected the disbursement dates for the students in question in September 2023. Going forward, the Student Financial Aid Office and Business Office will coordinate the drawdown of funds, reporting to COD, and posting to student accounts. The personnel of the College understands that while on the cash advance method to disburse funds, they have three business days from the date the funds are received to post the funds to the student accounts. However, the disbursement date on the student account and in COD still must agree.